November 11, 2016

Market outlook

Daily charts
- trend is down on daily charts
- today, island reversal effect kicks in
- markets close 3% in negative
- AD obviously negative, VIX up 12%
- so now we have 2nd weekly close below 8500
- trend remains down ... till it reverses.



5 min charts
- break of initial trading range was sell signal
- cover at close


5 comments:

  1. so it means NIFTY ,bnf both r sell on rise ,bsce bnf is still bullish .there seems to be divergence between the two .so now if nifty creates a lower swing high below nifty 8700 it should be sell ?

    ReplyDelete
  2. Sir Bullish Island Reversal or Bearish Island Reversal??

    ReplyDelete
  3. Replies
    1. So Bearish Island reversal means that Bearish trend is going to reverse ? or the Bullish trend has reversed to Bearish

      Delete
    2. No... this means trend will remain down. Island reversal means the trend will reverse.

      However I would like to add an exception to this... that the markets are trading within the range of the master candle so the internal movements can be ignored by experienced traders.

      Delete

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