Question for Everybody: Isn't it true that technicals discount and capture everything, and as a purist, one should look purely at price action - don't care about volume, expiry, cues from crude, Dow, Inflation, US GDP, etc. - everything is captured in price action. Given all this, and it being a backdrop of perfect news (as of 11.55PM) - much lower than expected WPI inflation, falling crude, high (3.3%) US GDP, and given SGX Nifty Cues, a gap up seems virtually assured.
What kind of action would you look for in your daily charts before putting on a positional trade in Sep Nifty? I benefited from your advice yday and played the market from the short side, although captured only small moves. Would you go long on a strong gap-up in Nifty and if so, at what level (assuming no overnight long position) - Isn't it true that strong gap up markets (say +40 on Nifty) very often continue to move higher during the day, and may not fill the gap for several trading sessions?
Different opinions are welcome and encouraged.
Thank you guys. I really like this forum - very educational.
My name is Ashish as well, but I don't want to cause confusion with my namesake, so going by parttimetrader.