On a bullish Trend Ratio if Balance breaks, expect all longs to be trapped . Can short with stop above upper breakout figure. And vice versa
Along with the levels, there is Trend Ratio.
Near 1 or below is bearish, near 2 or above is bullish
( this as per last day's closing).
If Trend Ratio is bullish, expect support at Balance or breakout above Upper level will mean rally will continue.
On a bullish Trend Ratio if Balance breaks, expect all longs to be trapped . Can short with stop above upper breakout figure. And vice versa
1. DO NOT play bearish is market above Balance
2. DO NOT play bullish is market below Balance
The Balance basically tells you which side is a bit trapped
Nifty fut : Has closed on Friday below the Balance for Monday. So if Nifty opens a little below, will go short with a stop above Balance. Below lower levels will short more
More from Subhadip Nandy
My presentation on Money Management was based on a lot of sources as I mentioned. For traders interested on those sources , here they are
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Portfolio Management Formulas: Mathematical Trading Methods for the Futures, Options, and Stock Markets by Ralph Vince
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https://t.co/U0c65EbEog.