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Posting after a long time…actually been busy with my business and not finding mucho time to blog and not much time either to trade. In fact I do miss charting; something I really enjoy! Charts are like pieces of Art you either understand them or you don’t. Charts reveal so much yet hide enuff, charts are like Art evoking different feelings in different people; one person’s masterpiece can be another’s trash!
Markets have a lot of participants and they all see the same price action (charts) albeit differently; therefore each price point has a Bull or a Bear and maybe a Hog, and each of these three, trade their beliefs (their interpretations of charts) , and one of them takes home the bacon (Usually the Hogs finish on the dinner table!). In reality no one is right or wrong, it’s just one of them is on the right side of the market! And to be on the wrong side of the market is no crime either, as long as you have your stop and willing to accept the trade just didn’t agree with you! The worst you can do to yourself as trader is to convince yourself, your trade is RIGHT, even when the market moves against you. The simplest thing do is exit, wait, reevaluate and start afresh!
Anyway coming back to something I love, Charts, below is the daily chart of Nifty. What I have done here is to try and picture all the patterns different participants would like to see unfold (just to mention the previous post on bearish HnS on the weekly still not invalidated yet). By the way what’s important is the time frame you trade in that decides whether you are a Bull or a Bear; a daily bull can be a weekly bear!
From the above daily chart you can see we have;
1. A big triangle (shaded in yellow), clear break out and break down levels marked, breakout above 5730 and breakdown below 5380 (arrows),
2. A sort of huge slanting inverse a HnS (a too bullish perspective!) again a breakout at the same level as mentioned in the above triangle,
3. A small more real sort of inverse HnS reversal (marked in an ellipse) with the 200 periods MA acting as a deterrent or simply put the neckline, so a break above 5600 needed to put this one into play.
The levels are clear so take your Pick or should I say take your CALL where to PUT your money!
Posted by Tryin2Trade at 9:25 PM