Comment on Code your Technical Analysis strategy

chella commented on 07 Aug 2013, 02:43 AM

Dear Sir, Please suggest me some means to tackle situation similar to the one mentioned below?

Nifty closed @ 5677.9 on 02-08-2013 (Friday). I was having a view that ‘downward momentum is building in the index and it can head lower to 5566 and then 5430’ and also that ‘If there is rebound early next week (i.e this week) the index can move upto 5818 or 5850’.

On Monday 05-08-2013, Nifty open -5682, High-5721, Low-5661, Hence, when High 5721 was reached I thought there is a rebound and accordingly I took position at that level. But Nifty closed at 5685 on that day. Next day, i.e on 06-08-2013 it declined and reached the target of 5566. Hence, there was a loss for me. (I took positions correspondingly in Index futures).

In such a scenario what shall I do? Whether short term reversal mentioned as above could be confirmed from the charts? Or there any other means? Or shall I have to wait and see the closing price even if that means an opportunity lost? Kindly enlighten me as I come across this problem many times.

With regards,
Chella

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