Here are the OrderFlow charts of today's trading
Today's trading promised breakouts in either direction throughout the day , but one final move late in the afternoon produced a big winner as the market moved from balance to imbalance.
In the chat box we had identified two levels at 5093 and 5135 in the NF and 9862 and 9755 in the BN for break of range.
Again it was the BN which led the move higher having failed in the IB band trade a little while earlier. Even though that trade was closed with a small intra loss, it showed that sellers were not keen to push the index lower.
Early in the morning we had a move above IB high in the NF which failed and the market went to IB low on the other side.
Both trades were mentioned in the trading room and you can find references in the chat box posted a while earlier.
The point I want to make is that as system traders we would get some trades wrong, but there will still be a message which if taken properly can give you success in the next trade.
The trade which finally worked in both Nifty and banknifty was an exit of value and range in both which produced the biggest winner.That particular trade when seen in the context of a balanced distribution the previous day is a big winner as it always involves big short covering or long unwinding as the case may be.
Eventually a good day for the patient system trader