The above chart is a 5 min chart of Nifty Index I downloaded from Yahoo(might not be accurate to the last tick).What I liked about today’s play was the KISS(Keep It Simple Silly) element. But then the toughest thing in life is to keep things simple.
Nifty gave the first signs of short at about 11 a.m. When it failed to confirm, the new highs. It also made a Double Top along with an Evening Star pattern. There was a negative Divergence in both the MACD lines and Histogram. An additional signal to go short was also given when the signal line in MACD crossed below its main line (marked in the chart).Additional weakness was seen when it broke below its 20 period moving average and the low formed at about 10.30 a.m. Notice how the price stayed below the trend line and also notice how the falling 20 period moving average acted as a resistance. We had first signs of recovery at about 2.00 p.m. Though we had traced a long bullish Divergence in the histogram and also had a crossover in MACD lines, but the real confirmation came when the price broke out the falling trend line and 20 period moving average simultaneously.
Wow brilliant…..did I trade it? Nope. Any lesson learnt??? Yup..I will be tryin2kiss in the future!!! Smooochhh!
1 comment:
Yeah,Toughest thing in life is to keep things simple( bcoz everyone have 2 mind?..he he.)
True it is " TRADING IS SIMPLE BUT OUR MINDS BEING COMPLICATED "
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