Shorts taken at Weekly pivot and 5day highema proved to be a dud. The negative diversion in the chart ended what looked like a perfect uptrending day and helped cover the shorts almost at par.
The trade taken was wrong as it was against the trend as well as neglected the important SAR of 5440 ,the crossing of which should have been a long trade .
Carrying the positional shorts though the aggresive s/l of close above 5440 has been hit but taking chances with the close above conservative s/l i.e 5485 .
Still the question remains that this closing above 5440 (Mon,Tues,Fri) is a trap or that happened below it (Wed,Thrus) was a trap? (Today's Option Analysis pointing to bullish possibilities.)
Have a Great Weekend and HAPPY INDEPENDENCE DAY !!!
4 comments:
RV
Indian Vix is trading at it lows @ 16.74
Wat does these mean & wat can we expect in the future
Hi RS,
VIX has inverse corelation with Nifty prices.Low volatility normally accompanies a top formation .increase in volatility was accompanied by downtrend and increase in ATR in last few corrections.
There is a saying-that if volatility is low ,it's time to go and when volatility is high its time to buy.
I had psoted a chart of a vix chart in corelation with nifty when it starting botomming out on july 24th here in a post-Future shock,the link is -
http://o-j-n.blogspot.com/2010/07/future-shock_24.html
it was a post telling about indicators that an intermediate top is near.now when will market top out is anybodies guess .u will see the vix also bottoming out that time.
till then trade light with the trend and hedge the longs.
Thanks for ur efforts taken to explain me
I took a 5400 puts as positional & market is not breaking 5350 & bouncing from lows making very range bound moves.....
I am totally confused about the future moment. Do u think is their any chances of we testing 5350 & 5300 in august
Thanks in advance
Looks like a weekend play,
to continue the game on a black monday ...
let us wait for the FII action etc to see few layers more.
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