HOW TO IDENTIFY A TRENDING DAY
I had posted silmilar post in miniflow thread some months back,tried to locate it but it seems to have got burried...
Nobody can identify a strong trending day before the day starts...but as the day's market action progresses, it can be identified with fair accuracy. Some of the tell-a-tale signs of strong up trending day are as under : Mirror image for down trending day.
1) Strong up day starts near the bottom of the day's range and closes near the top of the range both within bottom/top 20%. This means that the market does not retrace much after opening and quickly gets down to its business.
2) Strong up days are made of 1-2 Wide Range Bars ( WRBs)with large volumes.
3) In up trending day the rallies will be have more volumes than declining bars.
4) In uptrending day, there are no frequent reversals.
5) Market overall is strong and broadbased meaning there is strong move in many stocks/indices.
6) In uptrend day market does not retrace much....retracements are small and market gains the retraced ground fast.It is my thumb rule that if the market in-between retraces more than 25 points in Nifty Futures from its intraday top,chances of strong up day are remote.
7) In strong up day market gallops after 2:00 -2:30....and rises very fast from 2:45 to 3:10....and may retrace some ground gained afterwards.
We daytraders must have some large trend days on our side ,where holding till end and adding on every dip is all we need to do , to keep us on winning side.
Best wishes,
Smart_trade