Yesterday, I wrote:
"We can identify 4350 as resistance and 4300 as support. A move beyond these levels will be the first sign that the Index is moving towards a directional move. When this happens, take a position in the direction of the breakdown / breakout. "
Today, the Nifty opened lower, below 4300, thus giving us a breakdown. Then, the unusual happened. The Index started a recovery, eventually moving up above 4350. Often, while breaking out of a narrow range such "double" breakouts are possible. First a false move, then the "real" move. Now, my perception has been that the markets were likely to break down. But, the market gave a clear message by going above 4350: I am going up! We do not argue with the market, ever. The market is supreme.
In my Day Trading, I use a service called "Day Vinayak" - provided by my website: www.technicaltrends.com . The first trade today, was a short position. This position was closed with a loss of 20 points at 4287 approx. A buy signal was given at 4287. This buy signal was closed at 3:20 in the afternoon at 4432, for a gain of 145 points. The gain was remarkable. Now, we took both the signals. My perception does not influence my day trading, since the market can change its view and we have to follow the market. Short term trading is about momentum.