It is necessary to see nifty movement thoroughly.
If nifty or sensex are falling down since 3days and you are planning to enter in bottom but scared too about further fall.
So waiting for one gap up opening of market.
If market is really having bullish reversal then sensex/nifty with open more than 0.5% gap up and that too will run upside from there within 20-30minutes only.
If sensex/nifty is opening with less than 0.3% gap up opening and you are able to buy index future or stocks easily at comfortable price ,
Then it may be a false & unsustainable reversal.
Jis gadi ko aasani se pakad Pao wo mostly chadne layak nhi.
Chalo chadh bhi gye Josh me toh,
Baithne layak toh hai hi nhi.
Nifty /sensex will be range bound after 2 days clear movement either side.
So reduce your trading volume or change instrument from future to option or option to equity cash as per risk capacity.
Just wait for next break out by placing 5 days high low orders.
Nifty/sensex may run or fall straight for 7-10 days twice a year when these are breaking yearly or all time high – low.
Keep checking 3month /1 year /5year charts ocassionly.
Traders are losing maximum capital in such medium term break outs because all of them got trapped in pattern of last 3-4 months.
And when there was a positive break out ,they all were short selling.
Nifty was range bound from 10100 to 10800 for 6months from feb18 to nov18.
When it broke 10800.
Many trader sold nifty.it went to 11200 straight. Then they sold more to cost average and it went to 11700 erosing all their capital.