July 23, 2019

Market outlook

Daily charts:
- trend is down on daily charts
- today nifty closed flat at 11331
- AD was flat

- today 280 stocks made new 52 week lows

- option writing support 11300 resistance 11400

3 min charts:
- attempted a new strategy
- this works best in rangebound markets
- so we short near a known resistance and buy near a support
- these are as shown
- SL 10 points target 20 points
- got 40 points today (first 3 trades)

- could not trade last 2 trades as I was not in market after 1.30 pm
- this could have given another 40-50 points in futures

- note that 11300 and 11400 are option writing sup and res levels

- your trading terminal should allow you to enter fixed SL, trailing SL and target when placing any order

same chart with swing indicator
- a common mistake people make is in assuming that the reversal level is the SL
- the recommended SL is below the low of signal bar (long) or 3 bar low
- a signal bar is any bar with an arrow
- you can make some additional conditions if required
- your plan should be to have small losses and let profits run when required

- by this logic, first short trade should not be taken or if taken would have given very small loss
- ditto for first long trade
- last short trade would have given 40 points

- choose whichever method you like and apply it for all markets
- do not keep jumping between methods

15 min charts:

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