Nifty futures charts for last 20 days (15 EMA and 30 mins)
all red dots are proper corrections to 15 EMA after making a new high (sometimes markets correct to go below 15 EMA, thats ok). As you can see, each red dot has made a higher low so each red dot makes a bull SAR.
A breach of bull SAR (i.e markets dropping even by 1 point below bull SAR) triggers trend reversal and shorts are triggered.
Currently the bull SAR is at 5232 (lowest point between previous high and current high) . Today nifty touched 5398 before falling to 15 EMA and making 5333 low.
If nifty was to make a new high above 5398 tomorrow, it would mean todays 5333 would become a new bull SAR.
If Nifty keeps falling and goes below 5232, it will mark the trend reversal and shorts will be triggered.
Please understand the above charts.
Tomorrow I will post about when to enter, book profits and pyramiding etc.
Cheers
SH