All Seniors
Is it possible to predict a flat day for Nifty a day in advance?
If it is possible , we can avoid trading on that day.
Please put your inputs.
Thanks
Amit
After a strong trending day, next day the market has to continue its trend or it goes sideways for consolidation / distribution. If the market after open, does not waste much time and starts in the direction of the trend, then it is a continuation day. But if market spends too much time or opens gap down after a strong close or takes a large dip, then trend continuation is almost ruled out. Day next to trend day is generally a sideways day and the trend continues on day after the sideways day.
I have found that if market comes down by 0.35 R ( that means if the daily range is 100 points and market dips 35 points from the open) , then trend day possibility is almost ruled out.
These are the general guidelines. There are exceptions to the rules.
Smart_trade