Mirroring global clues NIFTY hits air pocket taking off above 2% from its closing value on Friday. Hourly chart moves to bearish trade. Short NIFTY below 5004 spot with a stop of 5116.50 spot. This signal is for both swing and trend traders. Stop is quite far away due to the high volatility the market is in today.
If the trade is not filled, wait for next signals. Our long position on trend system gets exited below 5004 spot, losing close to 90 points plus commissions. Both weekly and Daily charts are out of trend, which means that the price would keep coiling between EMA's, so hourly charts will not have substantial moves unless a new trend develops.
But an advantage to keep trading your system is that when the market goes into trend it will be the hourly charts that will get the best out of the trend. Keep playing the market in safe mode, stick to strict stop losses, and keep risks within 2% of your capital. Even after a streak of losing trades you need to have the money power to trade the next signal. Money management gives you the staying power.
View both loss and gain in the same mentality, need not get emotional with losses, that is the expenses of this business.
Thank you.
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