BraViSa TempleTree-India Market Calls
- Thread starter d_s_ramesh
- Start date
Lost new shot position with a 13 point loss plus commission. Market is tight, but the prevailing trend is bearish unless there is a close above 4902 on the next hour. else there is a possibility short again.
Losing trades do come in any system, it is how we manage them that is of concern. Cut down losses short and keep the winning trades big. Existing short position is on hold with a 70+ points gain. We have given back more than 90 points from the low of the trend.
If the trend continues we add more profits, whereas on the contrary if there is a reversal, still we gain some points. Trend following rewards patience.
Losing trades do come in any system, it is how we manage them that is of concern. Cut down losses short and keep the winning trades big. Existing short position is on hold with a 70+ points gain. We have given back more than 90 points from the low of the trend.
If the trend continues we add more profits, whereas on the contrary if there is a reversal, still we gain some points. Trend following rewards patience.
As long as the price is between sweet zone and the trend is active on the bearish side, we keep shorting. Now there is a new short signal below 4861.5o spot. Those willing to trade can take position with a stop above 4900 spot.
As the ruling price is in between the stop and entry levels, the possibility of this trade getting filled is lesser. The next hourly chart may change the scenario presented now.
As the ruling price is in between the stop and entry levels, the possibility of this trade getting filled is lesser. The next hourly chart may change the scenario presented now.
NIFTY today had a strong positive closing giving cheers to its global counterparts. With the broad market on all time frames in the trending mode, moves either way are likely to be profitable. Today we had a failed trade in the add on short entry, but our trend short made a gain of around 45 points.
While the daily charts are in the bearish side, hourly charts have turned bullish. What are the possibilities now? Daily charts seems to be in a turnaround stage. Markets are connected to a hour long rubber band which expands & contracts. In that sense now the daily chart needs a pull back to value zone. The value zone for today on Daily NIFTY is 5000-5080, so the bullish move can settle anywhere between here and resume its bearishness from there. By the time it reaches here, it will start showing weakness. Only then will it be followed by a good bear move.
Sometimes even without a followup or re-test of lows, the market turns up. There are various examples of this pattern and a very recent one would be the February move after budget. When Daily chart makes a pull back to value zone it is bullish consensus for the hourly.
Hourly charts have a good bullish divergence on the MACD lines and Histogram and most important is that the chart is in trend, a reversal in trends tend to give a fairly good move, which we had seen on 10th May 2010. When this is what the charts say on today's close, a complete opposite of this scenario or even a pattern totally un-relevant also is a possibility.
So, let us trade the signals which have the highest probability and the keep our self the cushion of stop loss, which is like a brake in an automobile. Like how we would not drive any vehicle without a brake, let us not trade without stop loss. It is so very important.
Hold to long positions with stipulated stops and we will keep updating on a regular basis.
Thank you fellow traders for giving immense support to our writings here with regular readings, criticisms, pointing out mistakes and asking questions. It is being an amazing experience writing here, which in turn also makes us learn more. More about human psychology and more about trading.
While the daily charts are in the bearish side, hourly charts have turned bullish. What are the possibilities now? Daily charts seems to be in a turnaround stage. Markets are connected to a hour long rubber band which expands & contracts. In that sense now the daily chart needs a pull back to value zone. The value zone for today on Daily NIFTY is 5000-5080, so the bullish move can settle anywhere between here and resume its bearishness from there. By the time it reaches here, it will start showing weakness. Only then will it be followed by a good bear move.
Sometimes even without a followup or re-test of lows, the market turns up. There are various examples of this pattern and a very recent one would be the February move after budget. When Daily chart makes a pull back to value zone it is bullish consensus for the hourly.
Hourly charts have a good bullish divergence on the MACD lines and Histogram and most important is that the chart is in trend, a reversal in trends tend to give a fairly good move, which we had seen on 10th May 2010. When this is what the charts say on today's close, a complete opposite of this scenario or even a pattern totally un-relevant also is a possibility.
So, let us trade the signals which have the highest probability and the keep our self the cushion of stop loss, which is like a brake in an automobile. Like how we would not drive any vehicle without a brake, let us not trade without stop loss. It is so very important.
Hold to long positions with stipulated stops and we will keep updating on a regular basis.
Thank you fellow traders for giving immense support to our writings here with regular readings, criticisms, pointing out mistakes and asking questions. It is being an amazing experience writing here, which in turn also makes us learn more. More about human psychology and more about trading.
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