Nearing resistance...

Will it respect or breakout like #Mindtree?
#TataElXSI

@piyushchaudhry Ditto...😃

There have been only 4 instances in the last 20 years that 14-period #RSI has been above 85.

The sample size is too small & there's an element of hindsight!

But it definitely suggests we're at the extreme of the rally!

Not suggesting an end of bull markets! But just take the cognizance of the fact that every major bull market is followed by steep correction/ bear markets!

It would be a good idea to check your risk management systems!

5 RULES TO IDENTIFY A STRATEGY THAT WORKS:

There are plenty of trading systems available on the internet and there are many trading systems providers.

But how do you know which ones are going to be potentially profitable?

1/ PREMISE OF THE STRATEGY:

The most important factor in any trading system is the premise or philosophy or logic on which it is built.

The systems must be able to identify certain repetitive behaviors which are inherent to any market.

An example could be #trend or #momentum or #mean reversion etc.

The magnitude of these behaviors could vary over time but they are natural to any markets.

Better yet, you should have multiple systems that attack these behaviors...

This is what I call the Hybrid Approach !!!

2./ SIMPLER, THE BETTER:

Once you have understood the logic behind the system, make sure it's based on simple rules.

If there are more rules, it’s a red flag that the systems are probably over-optimized or curve fit to past data which is unlikely to work in the future.

Most of my strategies have no more than 5-6 rules.

That’s it.

Keep it Simple, Stupid!

#TataPower coming out of a massive channel...

it has alreready made a new all time highest close. It provided low cheat entry twice already in last 2 weeks.
A good breakout to new high is possible here

#tataelxsi