Nifty may bounce to 10,750-10,900, but long-term trend looks down

The February 2018 has triggered a sell signal. That's less than a week old but the market has fallen over six per cent in four sessions

The concept behind trend-following trading systems is simple. If the system gives a buy signal, the trader will set a stop loss below entry price and go long. If the price does go up, the position will be held and the stop loss moved up. Inversely, if the system gives a sell signal, the trader will set a stop loss above the entry price and go short. If the price falls, the position will be held and the stop loss moves down.

This combination of a long/short position and a trailing stop loss aims to minimise leveraged losses (if a stop