February 4, 2021

NIFTY EOD charts

- trend is up on daily charts
- just few days ago, I had indicated the trend as down
- and then markets have a whipsaw

- note there was no whipsaw from 11500 to 14000
- a false signal or whipsaw is common in trending markets
- that is why stoplosses are important

- many traders do not like whipsaws
- they want indicators which are 80% or 90% reliable
- this happens only in dreams
- in real life, expect half the trades to fail

- as always reversals will appear first in lower degree timeframe charts
- so we had a buy signals in hourly, 30 min charts (posted separately)

- today markets closed 0.8% in positive at 14896
- AD was 2:1
- resistance 15000 (round number)
- markets already trading comfortably above 50000 (sensex)



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