August 27, 2019

Market outlook

Daily charts:
- trend is down on daily charts
- today nifty closed 0.4% in positive at 11105
- AD was 13:5 (or slightly better than 2:1)

- stiff resistance around 11200

- how about an H&S forming with neckline at 11200?
- right hand shoulder (RHS) is yet to be formed
- but no harm in just guessing
- RHS formation would mean another decline leading to higher swing low

3 min charts:
- traded long on first bar breakout... stopped out
- traded long again (2nd blue arrow)...stopped out at breakeven
- did nothing thereafter as markets were extremely rangebound

- after a big move, it is normal for markets to give wild swings
- 2 consecutive whipsaws means ... keep quiet/ stay away

15 min charts:
- you should be stopped out by now

Supertrend generated a lot of brokerage... all signals failed... happens with every indicator in rangebound markets.
- don't waste your life searching for the perfect indicator
- it does not exist
- the smart trader knows a whipsaw hints at a rangebound market

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