When u miss the train...

Afraid of missing the train of the new trend about to start?

And thus losing when the new trend doesn't start immediately when u enter, rather the old one is still continuing?

Just like the Bank nifty where correction hasn't started as yet despite the indicators suggesting that it is severely over bought as of now (17th Aug 2010 closing)!

While there is no way to exactly pin point the start of the new trend when indicators are hinting

here is a simple way to avoid the pitfall of jumping into the trade, expecting the new trend, too early!

"When the new trend finally and mercifully starts

and if you are not on it

don't worry

it will retreat a good distance to pick you up."

This way you will not lose the train of the next trend except for a few yards!

e.g. just have a look at the CNX IT chart for 1 month. Here you will notice that from 12.30noon 14th Aug'2010 till 2pm the next day, both rsi as well as william%R were at overbought extremes and you could have erroneously and prematurely entered the short trade much earlier anticipating the down move.

Here, if you were to go as explained above,

though u would have seemingly missed the train at 2 pm on 15th Aug, it would have retreated

to pick u up at around 12.30pm on 16th Aug with hardly any loss of opportunity.

Also, note that by that time both rsi and william%R have started on the new journey (which incidently ended at 9.30am on Aug12th when both rsi and William%R met again at the other extreme.

So, when you missed the train of the new train, don't worry!

Just walk a few steps forward and expect the train to retreat to pick its most valuable commuter...

You!!!