Time to Sell P&F Double Bottom Signal!!

Date: 6^th May 2013

Last week view worked well. Asked not to sell though Nifty is at resistance, rather buy subsequent double top signals!  People who shorted because it was trading at resistance were caught. P&F signals can help in avoiding temptation of trading our guesses, news and assumptions. 

Figure 1 and 2 are 10 box P&F charts. Nifty strong up move is trading above Anchor point now. I said that I expect sort of trap formation above anchor point!! I am monitoring the occurrence because that’ll provide us an opportunity to trade.

Keep your stoploss tight in case of double top buy signals from here. But it is time to trade double bottom sell signal now if that occurs. Vertical count will give direction for target area in that case.

I expect prices to respect Anchor point levels. And so I want to trade double bottom sell from here. Why not to sell now then? Answer is simple. Let price tell us that we can short! Why to trade assumptions? They are not affordable. Understand that double bottom sell signal from here will make a bull trap above anchor point resistance level and activate a vertical count. It’s a tradable pattern. Stoploss should be any subsequent double top buy signal.

What if double bottom sell doesn't occur? Simple, don’t short!! Nifty above 6100 will open doors for many counts.

     Figure 1: Nifty 10 x 3 Cl Point and Figure Chart

     Figure 2: Nifty 10 x 3 HL Point and Figure Chart

- -          Prashant Shah

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