1) lost 3R in the gap uptoday.
2) Although the trade made sense in 15 from always in perspective always look at the higher time frame for the possibility of major support or pattern
3) One of the best pattern to trade on any time frame is a double bottom at 20 ema after a spike or strong move
4) If the move has to go down...
I posted yesterday that longs were suspect and the market could reverse any moment. Trading against big gaps in downtrend is a losing strategy
Looking to short morning rally for an attempt to break the channel again.My bais is bearish.
Stop- closes above ema ( if fails, looks to short again)
1) I don't like to trade against big empty space (moves are never smooth and sometimes reverse abruptly
2) In situations like this, a systems trader does well than a discretionary trader.
1) Why not look to buy a pullback?
Most likely best choice of strategy, but to me, it still looks like a trapping move
1) The eventual target of nifty is channel bottom
2) We had a chance to gap up but failed, no closes above ema
3) Expecting the market to fail near the ema and make a move towards the channel bottom
4) stops- close above the moving average
5) DO NOT BUY
If markets break above the ema then the possible area to short again...
1) Nifty gapped down heavily from channel top
2) Bulls are trapped
3) All 2 legged pullbacks near the moving average will be shorted
4) Most likely we will reach channel bottom in a day or two
5) Book partial profits and Trail existing shorts to close above ema
6) Look to short again near the ema ( may not touch it)
7) DO NOT BUY
1) Observe every breakout above the high in this channel- It comes back and test the breakout point. This is sign of weakness.
2) Channel top clearly visible
3) I was hoping for a clear breakout on the upside ( was low probability) The morning failure confirms what we already know, bull are not that strong.
4) Looking to short
Existing trend- Sideways to up
Strategy- looking to buy pullbacks
Areas of support- 20 ema or a double bottom above the ema
Falsification of idea- 3 large consecutive bear bars or a bear microchannel of 10 or more bars
Possible target- 9600
Possible stop- a close below 20 ema