Index direction is critical for your to succeed in day trading.
Whether you trade in stocks or futures or options you can improve your trading by knowing the direction.
Though you just need a good strategy and proper risk management to succeed in day trading.
So why do you need to look at your index direction ??
The answer is -It will improve your day trading skills and results.
When market starts you index will give you a clue about overall market sentiment.
Obviously you don’t want to buy if market sentiment is bearish or vice versa.
If you are trading in Indian stock markets your major indices are -NIFTY and SENSEX.
What is nifty index??
Nifty is the combined average value of top 50 stocks listed in NSE(National Stock Exchange)
It is derived from terms national and fifty.
What is sensex index??
You can use our trend trading strategy to identify which direction to choose.
Go to chapter 3-Advance and decline ratio for trading setups