Gold Revisited – Yes, charts work

Well, charts do work. two days ago, I gave the chart for gold. Today, prices have broken out. Remember, that I have given two trades for Gold in real time. Means, that the trades were given as they were developing. Readers should not misunderstand this statement. It is not to praise myself . I make many mistakes. I am showing that charts work. Here is how the latest trade worked out:

Have a view before markets open

Day traders / short term traders should have a view on market movement before the market actually opens. How will it be like today? Should I expect (a) trend day, (b) volatile day with tradeable swings (c) a narrow range day (d) choppy day where the swings are not likely to be tradeable, or (e) an unknown day with no clear advance indications.

A lot of days will be unknown (e), which is fine because often there is no clear indication to trade. On such days, do not trade that instrument. Trading is done on (a) and (b), and avoided on other types of days.

Today, Friday, I expect (d), so little or no trading in Nifty until patterns emerge intraday.