Well, well so we did break our six day streak? You can attribute this to a weak Dow or Law Of Averages or for that matter anything. For me today was a satisfying day trading nifty. I love the “Fade the Gaps” trades and that’s what I did today. Though we opened with a wee bit of a gap, failed to sustain our gains and closed in the red amid much volatility (yeah I know it is expected when expiry is near).The second trade I took was a Wolfe Wave short (will explain about this setup in a different post). Today’s close on the dailies resembles a Spinning Top. A Spinning Top is a variant of a Doji. A Doji indicates only a state of uncertainty but a Spinning Top indicates volatility as well and that’s what we witnessed today. Now what makes this pattern (red circle on the daily chart above, on your right) interesting in the dailies is that, depending upon tomorrow’s move, we can label them as Reversal Stars (go down) or Consolidation Stars (go up). Confused? Well that’s why they tell Technical Analysis is not an exact Science it’s more about Probabilities. So what do we do? We take our call tomorrow on break of either the High or the Low!!!
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