May 4, 2020

Market outlook

Daily charts:
- trend is up on daily charts (mentioned clearly buy signals will fail)
- trailing SL is at 9000 (reversal 8050)

- today nifty opened gap down and closed 6% in negative at 9293
- AD was 2:7

- VIX now at 44... up 29%

- "island reversal" pattern formed today 
- this requires 3 candlesticks to form
- Thursday gap was a trap and many people got trapped

Now what???
- if you are a price action trader, you will be short from Thursday or today
- a big move in opposite direction usually indicates start of new trend
- if you are a trend follower, you will be having your own reversal level/ stoploss
- for most people, this would be around 9000 levels
- here I am referring to daily charts

- it is normal for signals to fail or SL to get hit
- it is wrong not to have an exit strategy  or SL

- I have clearly indicated in my posts that buy signals will fail
- in trend following, after a big move, the next signal usually fails... this is normal

- rising wedge pattern valid?
- if yes, retest of 7500 is possible

5 min charts:
- traded short as per first arrow
- covered around 9330 F

15 min charts:

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