Tuesday, June 17, 2008

Range Expansion is a time to take profits

This quick entry is to update readers on my Nifty trading positions.

I was long in the Nifty since yesterday. Today, in the last hour of trading, a sharp up move saw the Nifty jump all the way up to 4662, a gain of 80 points. This sharp, sudden move in one direction is a range expansion (RE). For me, an RE bar is usually the signal to take full or partial profits.

Just before close of trading, I have taken profits (lucky!) on all my futures & options positions.