August 28, 2019

Market outlook

Daily charts:
- trend is down on daily charts
- today markets closed 0.5% in negative at 11046
- AD was 7:11

- markets could not cross prev day's high
- markets broke prev day's low but recovered sharply
- support is emerging around 10990-11000 range

3 min charts:
- since prev day was a rangebound day and markets opened within that range, I decided not to trade
- my indicator gave whipsaws on almost all signals
- it should be noted that none of the signals were valid as they appeared near  a known support or resistance
- in hindsight, circled areas were best areas for taking a trade
- first trade short as it happened near a known resistance
- second trade short as prev day low become resistance today
- third trade long as it happened near 11000 (big round number)

In hindsight, same indicator with N=5 gave excellent results. Same setting gave many false signals yesterday.

A workaround is to simply draw support and resistance lines and trade accordingly.

I use this method for delivery trades and sometimes for intraday trades.

Or you can follow @ForNIFTY and learn the price action methods...

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