Hi Gurmy and jamit_05,
in past few days, peculiar situation has occurred.
NF in short trade. the current day makes a low below the low of previous 2days and then rises to hit the SL of short (long trade not reached). subsequently, NF falls below low of the day till then. In such a situation, should NF be re-shorted below low of prev 2 days or below low of today till then?
e.g.
(i)
19-Mar-2013 5863 5869.45 5736.55 5751.9
20-Mar-2013 5735 5758.55 5701 5715.5
On 21-Mar-2013, NF opened @ 5729.9, made a low of 5681 and then went abv 5759 to hit short SL and reached up till 5772. Subsequently, 5681 was breached and NF fell till 5655.05. Should we have re-entered short below 5701 or 5681?
(ii)
21-Mar-2013 5729.9 5772 5655.05 5664.45
22-Mar-2013 5660 5707.6 5641.95 5668.4
on 25-Mar-2013, NF opened at 5700 and hit short SL at 5708 and then fell below 5642. re-shorting was done below 5642. This was a 'more' normal case.
please give your suggestions for (i) and confirmation of action in (ii).
thanks,