I don't want to be in a big discussion.
Summary.
As SH also confirmed, I will agree with trader_boy. 3 EMA @ 9:15 is more important than yesterday's 3 EMA because now you are looking @ latest 3 EMA value & based on it either exit OR stay with the trade. So for exit REALTIME is more important.
Hope you don't mind as i jump in between discussion between you & trader_boy.
Summary.
As SH also confirmed, I will agree with trader_boy. 3 EMA @ 9:15 is more important than yesterday's 3 EMA because now you are looking @ latest 3 EMA value & based on it either exit OR stay with the trade. So for exit REALTIME is more important.
Hope you don't mind as i jump in between discussion between you & trader_boy.
1. 13th DEC Nifty Future Close Price was 4811.35 (Adjusted Price)
2. 13th DEC 3EMA price at Close was 4835.63 (Based on the above Adjusted Price)
3. 14th DEC Nifty Open Price was 4800.
4. 14th DEC 3EMA price at Open was 4817.81
Now, leaving aside the argument of which 3EMA to compare, it is definite that there was a GAP DOWN.
Ques - Why do we book profits for GAP DOWN?
Ans - We wait for Price to touch bach the 3 EMA value. This in most case scenarios will happen if the Price starts going Up, and crosses 3EMA and that is when we will Re-Enter the SHORTS.
Then, as is stated some where in this thread, all we have done is nothing but continued our position and taken advantage of Intraday Movement.
E.g. Say I took Original Position at 4820 Yesterday.
Today morning, I Exit my Position at Say 4785. Now my goal is for 3EMA re-touch.
At what point will this happen? If you have analysed, you will see that for the next day, in order for 3 EMA touch to happen, the current Price should be equal to the Previous EOD 3EMA value.
Now, previous day 3EMA was 4835.63.
So, if you put this value at the closing price (just for sake of calculating Current EMA), you get current 3EMA as 4835.63. All Agree???
So, when Price started Rising today and it touched 4835, I re-entered shorts.
Now the price again went down and closed the day at 4764.
So, what have I done actually?
If you see from a different view, you are still holding the Initial Shorts of 4820 whose current value is 4764. Meanwhile, you did an Intraday Trading for the 4785-4835 range and booked that as your profit.
Although this system is a No-Brainer but it is good to understand "WHY" we do certain things.
Thanks,
AC