Trading is a Business of managing uncertainities. If there was a certainity in the Maket ,it will cease to exist . Acceptance of uncertainity is a virtue and reacting to it is the way to trade . We all trade our beliefs in the arena and have no control over the markets , but importantly we can control our actions and be hedged against our own beliefs . The most difficult part of trading is to manage oneself in realtime , trade the screen , control the risk and leave the bias when price action says it to . All this can only come if the rules of the trading system are set in place and above all are followed with discipline. Let no loss go without a lesson and be able to shake the confidence .Probabilities have to be traded but with proper risk management. Easier said than done, but that is why only a few succeed here.
These pictures tell the Story till now and that to come ahead --------------
1. Head and Shoulder Pattern is a topping out , Reversal pattern . It has been been confirmed on Weekly Charts. Just guess the Target !!!.
The most difficult thing in Trading is to believe and trade what we are seeing on the screen.
2. A 20 month strong Trendline supporting in Daily charts has also been broken. Staying below it will bring more weakness.
The Support does not holds in a Bear Market , same as Resistances give way in a Bull Market. In a Panic condition ,People will always look for Exit doors first.
3. All the Important Moving Averages in different Time Frames are Bearishly Aligned.
Keep in mind ,what the Dow Theory says - A Trend should be assumed to continue in effect untill such time as its reversal has been definitely signaled.
4. A Triangle Pattern also broke down being effective since the start of this Year.
Many Traders believe they are too late when they stumble across a breakout in progress, Infact they are often too early.
5. The Long Term Fibonacci Charts will come into play now.
Make Hay while the Things go Haywire !!!
6. If this Expanding Triangle Pattern unfolds , 4800 will be a conservative Target only. !!!
Remember that There is nothing in a Caterpillar that tells you that it is going to be a Butterfly.
So a Bear Story is unfolding , it has just begun ----------
Hasta - La -Vista !!!