Is there a bull on the highway?

The classic definition of an uptrend is : higher highs and higher lows, holding of support levels, declines are shallower as compared to rallies.

So far, the up move from 4800 has broadly met these parameters. To me, these are signs of a change in trend from bearish to bullish.

With a lot of news around us, markets will not go up like a rocket. The up move may be filled with volatile movements. It is also possible that  markets may not go up. To take care of this eventuality, traders must have an exit strategy. For me, the up trend fails if the Nifty closes below 5000 – 4950. This is the broad area below which I accept that the up trend is no longer valid.

Analysis is one part of trading, it must be converted into actionable ideas. My plan is to focus mainly on long positions. Dips and breakouts.