Squaring-off too early or too late?

Do you book profit too early?

or too late?

I had been facing this dilemma for a long long time till I developed a rule -

"Unwind Long positions only when there is clear signal to short!

And cover short positions only when there is a clear signal to go long!"

This means being in the trade all the time!!!

Either you will be long or you will be short.

But you will always be in the market!

This requires IIIrd degree confidence on your system, guts and a lot of practice.

But once mastered, this is the fastest way up in stock market.

How I do it?

I use this 2-tier test

a) Have both rsi and william % r (both 14/30min on 1 month chart) touched the other extreme?

b) Has the outer rsi touched the extreme? (e.g. if rsi 14/30min on 1 month chart has touched extreme, has the rsi 14/1day on 6 month chart touched the extreme?)

If the answer to both the above questions is "yes" I reverse my position, otherwise I wait.

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How to get these charts (e.g. for Nifty):-

A) go to website (http://www.google.com/finance?q=NSE:.NSEI)
for stock pl search stock in the column before "Get Quotes". These google finance charts give almost live quotes for NSE (BSE is delayed).

B) click on '1m' inside graph window

C) click on "technicals" below graph window.

D) Click on "add technical"

E) Select Relative Strength Index (14/30min will appear automatically)

F) Select period as 14 instead of default 10

G) click on "add technical"

H) select "William % R" from the drop box.

I) Set the period as 14 instead of 10 (default)

J) You are ready!