Today Mini nifty high is 5047 and the opening 3ema was around 5070. I am waiting for 5070 to short. But if it continues to fall then 3ema kiss will be around 4990 mini nifty (i.e. 3 ema will touch todays high). Do we short at 4990 or wait for pullback to 5070 ?? If we do short at 4990 and market turns around then any close between 4990 and 5100 will end up with EOD candle not touching 3ema.
Rough calculations... don't get confused... sitting idle and waiting for a trade....
Absolutely, I was about to post the same doubt.
Also, y'day I re-entered SHORTS at 5080 (which was the 3EMA value when I covered my SHORTS in the morning on non-touching of Candle).
Now, I knew (kinda) that today again while market opening the candle won't be touching the 3EMA, so covered the shorts again at 5036. The 3EMA value at that time was 5063.
So Ideally, as per strategy, I should re-enter either at 5060-5065 levels or at 3EMA touching today's candle, which ever is earlier.
QUESTION 1 Now, the problem is that if Market crashes, then as posted earlier, the 3EMA will touch the candle at 5050 (if the NIFTY FUT. value goes down to 5010). So should we enter SHORTS at 5010?
QUESTION 2 If it goes up, then ideally it has to touch the candle at 5090 which seems distant at the current moment. So if it doesn't touch till 3.25 PM, should I go LONGS as it will be 2nd day of candle not touching 3EMA?
QUESTION 3 If at all it manages to go UP till 5090, should we re-enter SHORTS?
Edit
This is what I am thinking of doing:
Wait till 3.25 PM. If candle is touching 3 EMA, enter SHORTS.
If it is not touching, Enter contra trade (LONGS) with target as 3EMA
Sounds Correct?
Edit End
Thanks.