Today's trades were news driven and happened fast.
Such kind of days need fast fingers to trade. The big move of the day was over in less than 3 minutes as traders reacted to the surprise from the RBI. Remember we have been speaking about a short covering move based on an expectation of a rate cut. When that was not delivered, the market showed it's disappointment.
Bias was important in a day like today, and after the big sell off, once it did not manage to come above value area low from Friday, then sell was the right thing to do.
Over the past few years I have tracked these orderflow signals, I have seen a very high success number with news based signals.
Orderflow signals around news, just before or immediately after tend to have a high success rate and need to be traded quickly. Not just in Nifty, but even in the commodity pack I have seen high percentage of success when new flow has been strong and we get these alerts.
This is because volume flow is an integral part of our system and heavy volumes produce the best results.
Nest time, the right approach would be to stay neutral just before a news break and take the signal which comes along the news flow.