Crusader, You are presuming that at 5454 Nifty levels Price bar touched 3 EMA, just because price rose up it would not touch the 3EMA, because as price rises so would the EMA, as per Excel sheets posted in this thread the 3EMA at close of Nifty 5454 would be around 5468!!!
After making a high when the Price retraces we are more likely to get a 3 EMA touch!! Now say after making a high of 5460, price retraces to say 5435, The 3 EMA would come down to around 5458, thus touching the 3EMA.. so we are shorting again when the price is going down!!
In this strategy WE DO NOT OPEN A LONG!!! My believe is that we need to keep
both the strategies separate... combining them may confuse a lot of members here who are yet to get a complete hang of the strategy!!!
Frankly I dont know what is to be done if we exited today at open and the price continued to go down... would not like to put in my views as the same may be contra to SH's original plan and hence create more confusion than removing. Let me mention atleast what I have understood as per SH's strategy: You reenter only on 3 EMA touch!! So in case we exited today at open, we may or may not get a reentry and may loose part of some profit!! As clered by SH, we exit and reenter only when our trade is in Profit!!!
It did not happen today and we got decent levels to short again!!