Technical analysis works ( in a probablistic sense)

Earlier this morning I suggested trading with a negative bias. In fact, part of what I said was

"If the market opens lower, I would wait 4480 to be broken decisively before shorting. Yesterday's high 4540 will be a good SL"

The market broke 4480 early but then went up to 4520 almost. Second time when it broke 4480, it did not look back.

I do not want to say merely that technical analysis work - what is more relevant is to say that if you u use technical analysis AND trade with discipline, then you increase the odds in your favour to buy low and sell high OR sell high and buy low. In this case discipline meant selling below 4480 and keeping SL above 4540!

The day's action has opened the doors for positional traders. I will write about this in my next posting.

If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com