Some of the readers have asked me what is my pre-market analysis routine. Frankly I do not do any such analysis.I let the market open and negotiate the price action as it unfolds.I only pay attention to the immediate trader decision points above and below the open and try to trade these levels
Let me explain today's trades
Nifty gaps up just above previous two days range. Now previous day levels have no relevance.Opening price is just above 28-03 High. If the price breaks below it, Nifty may drift further down to 28-03 close..Nifty is in no mood to come down . Goes up and make a BPB of 27-03 close level.A signal to go long.Another BPB at 27-03 High level.gives a second signal.
My trading revolves around decision points. Acceptance and rejection of price in these areas decides the direction of trade. Always there will be a decision point above and below current price and always market will be creating new levels.
Decision points are where fierce battles are fought.Sooner or later somebody has to win. Then you join the winning team.
It is very simple but not easy. Need a lot of experience. Slowly I am gaining it.