It was seven trading sessions ago that I had given a call to short.
It was based on EW(5 wave Impulse complete),channel top getting tested and negative divergence in RSI.
All the three factors have been illustrated in the chart below:
.png)
And it did show a negative bias for next four trading sessions---but the expected fall didnot come and though negative divergence is continuing and lower degree trendline is breached, price action has been inching upwards and the top of 5720(where shorting was initiated) has been breached.
.png)
And that brings to the fore leading & lagging indicaters----
EW,channel test and divergence--all the three can be clubbed in 'leading indicaters" category and they induce an "anticipatory action" from their followers.
EMA and MACD cross-overs are lagging indicaters and they are "supposedly" confirmatory indicaters and termed lagging indicaters.
I tried to combine the two by initiating shorts only when hourly MACD 5,34,5 showed a bearish cross-over and we did see a close below 34hr EMA and 5/10 hr ema bearish cross but these were not carried over to Daily charts.
These points are being mentioned to illustrate the supremacy of price-action and pit-falls of anticipation.
In current context,price-action has not been in consonance with my combination of TA tools so far --- and with this set of tools I am not able to initiate fresh long position.
Weekly pivot at 5692, 5DMA at 5694 and 34 hr EMA at 5700 are important support points, and with the benefit of hindsight one can easily say that for intraday trades, initiating longs with SL at these points (or Daily pivot/support/resistance) would have been more fruitful.
EOD Post:
Disappearing Divergence on Daily chart:
.png)
Price action, which looked like falling out of smaller degree trendline,is now firmly above it.And 5 DMA which was looking close enough is now a distant price point--:
.png)
It was based on EW(5 wave Impulse complete),channel top getting tested and negative divergence in RSI.
All the three factors have been illustrated in the chart below:
.png)
.png)
EW,channel test and divergence--all the three can be clubbed in 'leading indicaters" category and they induce an "anticipatory action" from their followers.
EMA and MACD cross-overs are lagging indicaters and they are "supposedly" confirmatory indicaters and termed lagging indicaters.
I tried to combine the two by initiating shorts only when hourly MACD 5,34,5 showed a bearish cross-over and we did see a close below 34hr EMA and 5/10 hr ema bearish cross but these were not carried over to Daily charts.
These points are being mentioned to illustrate the supremacy of price-action and pit-falls of anticipation.
In current context,price-action has not been in consonance with my combination of TA tools so far --- and with this set of tools I am not able to initiate fresh long position.
Weekly pivot at 5692, 5DMA at 5694 and 34 hr EMA at 5700 are important support points, and with the benefit of hindsight one can easily say that for intraday trades, initiating longs with SL at these points (or Daily pivot/support/resistance) would have been more fruitful.
EOD Post:
Disappearing Divergence on Daily chart:
.png)
Price action, which looked like falling out of smaller degree trendline,is now firmly above it.And 5 DMA which was looking close enough is now a distant price point--:
.png)
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