I go purely on technical factors because I think all the news is factored into the price action. Every weekend I do analysis and scans for likely trades and then stick to those few counters all week. I also prefer to take the big decisions based on weekly and daily charts and usually refer to 3 Line Break and Renko charts. Of course trade entries and exits are based on lower time frames like 30 min. Fibonacci and Ichimoku Kinko Hyo are my basic reference points. I also do my own probability studies with Fibonacci based multipliers and determine ranges for buying and selling.
I never go by OI or momentum... I don't like to be reactive, I prefer being proactive. You will notice in my posts that I pick counters much before the momentum sets in - Tata Chemicals and ICICI Bank trend and retracement end, Biocon, shorting ICICI almost at the top of the recent run up and then going long yesterday etc. It usually results in quick profits with little risk per lot.
YEs I do book profits and then again enter the trade. I try and trade in many lots for a limited movement in the direction of what I think the trend will be. Usually my SL or trailing SL is just a few points... usually not more than 3000-10000 loss per lot. I try and achieve a very precise analysis. If it goes against me by even very little I don't wait - I get out. Right now I have about 180 points per lot on Nifty and about 560 points per lot on Bank Nifty.
If it does go up tomorrow I will exit. Nice chatting with you. Cheers.
On May 14-15 I shorted quite a few lots between 1800-1700 or so. My target levels were 10428 (38.2% retracement of the drop from end Jan to end March) & 10453 (50% retracement of the rise from end March till May 15th). Yesterday I closed some lots @ 10430 and today completely exited at 10450. So it was an approx 300 points of profit per lot. In fact I went long intraday on a few lots at 10460 and closed at my target of 10520. (All future prices).
I have posted my Nifty level projections for today 24th May. See how precisely todays price action hit my levels. It is a probability projection study I have been doing with Fibonacci multipliers... I use it all the time for any trade I do. Check it out. It is very accurate. If I have time I will post tomorrow's projections.
As I said I read the news but I don't interpret it when taking trading decisions. I interpret the price action on charts - and price action factors in everything.