This is how I PREDICTED the market Bounce on Friday
"Again"
"Sometimes the probabilities are very close to certainties, but they're never really certainties." ~Murray Gell-Mann
The Indian Markets did bounce back hard on Friday after a small beating on Thursday.
Was there any way one could have predicted this?
NO (apologies for the misleading title but this was an important article you had to read).
Was there any way one could have been biased towards this incoming bounce?
YES (IMO).
In this article, I will show you what I saw post-Thursday close which biased me.
Before that, please read this article (link) on how every bounce in this bull market has been preceded by a market-wide shakeout event.
The Shakeout Scanner spikes again:
And that was the exact reason I was biased about a bullish day to come.
here is what I wrote for my daily breadth update (link):
Now, although highly correlated, a shakeout may not always accompany a Bounce.
Therefore, there are additional triggers one can look for that follow on the bounce day. These triggers, also mentioned in the breadth update are as follows:
The Net 4% data will turn positive.
ORBOs will cross ORBDs
Both of these signals came early on the bounce day on Friday.
Net4% crossed at 10.15 am.
ORBOs (open range breakouts) crossed ORBDs (open range breakdowns) soon after:
That’s all for today.
Want to watch an in-depth explainer video of this?
Click on this YouTube video link.
I want to leave you with one of my favorite quotes by James Clear from Atomic Habits.
“You do not rise to the level of your goals. You fall to the level of your systems.”
Successful trading is personal and all about having a system designed for YOU.
If you do not have a PERSONAL TRADING SYSTEM yet, you might want to check out my Beginner’s masterclass on Trading systems (details below).
I also help traders build their own personal trading system and show mine live every week in HPA.
(PS: 1-month free HPA access complementary with the Masterclass)
Details below:
Homma Private Access membership:
HPA is a subscription-based educational service (on WhatsApp). Benefits include:
Daily Market Breadth, Momentum, Sector Rotation, and Relative Strength Update.
Access to all my scanners including the BBB (buy before breakouts) scanner, and the Homma Khela Hobe 2.0 scanner.
Access to my proprietary Breadth-Momentum-Relative Strength & Sector Rotation dashboards.
Access to my Trading view indicators: Homma Khela Hobe, Buy before Breakouts (BBB), Homma Endgame, etc.
Access to live Telegram alerts to Homma Khela Hobe, Homma Pullback, and TGP scanners.
HPA Weekly: Hourly weekend deep dives and Q&A.
1-year access to The Technical Take premium.
Live alerts to high-risk-reward setups breaking out.
Live updates on my portfolio and the trading setup rationale.
Access to my high probability watchlist.
Yearly membership of 15000/- INR only.
UPI payment & WhatsApp @ 9481506784.
Yours
Sakatas “Shakeout follows a bounce” Homma.