Tip #1.
When you see a very high volume on a relatively small range candle, at previous
Support/ Resistance, you need to take action by securing the profits/ raising your Stop loss.
#ACC had a great start with high Volumes but stalled later in the day
Tip #2. When you see a Long tail or Wick forming, wait for the next candle to form for
confirmation At most, You will miss a trade OR get lesser profits, BUT, most of the times,
You WILL save your capital OR get more profits Some examples are attached Kindly
Like/Retweet !
1/n Query: Hi bro. today taken this trade but SL hit. please share your view My Response:
First of all, Congratulations for trying stuff out. You will get a lot better in next 6 months.
2/n I encourage everyone to practice this way by taking trades and then analysing what
mistakes you did/things which could have been better 1. When you see gaps in the chart, they
also act as Support/Resistance. Why? Because gaps mostly fill and then reverse (Read about
Gaps)
3/n Hence there was resistance around 374, so not a good place to long 2. You can long at 2
places, a. At previous lows, where price takes Support b. On Breakout of previous Highs with
Volume and strong candles.
4/n Here when you went Long, it did break day's high But it was not a big established
resistance. Resistance was at 374. Now when I would go long if I was following this stock? 1.
If price came back again to 370 after 9:30, formed a tail and Strong Bullish candles
n/n 2. Price broke 374 with very high volumes and very strong candles. Why "Very"?
Because price would be already 1.5% up by then and to go even higher, it will need "Very"
high Volumes and strong candles End of thread.
Trades
1/4: #INFY : PROFIT : +1.5R This the candle for which the rule of not taking any trade before
9:30 can be broken Price broke to new highs with very strong first 5 min candle and high
Volume. Didn't trade it though!
2/4: #UPL : PROFIT : +2R And this is the setup where you should Exit early and not hold.
Price was showing weak Bullish signs after the trade was initiated and hence Exited for 2R
3/4: #CIPLA : PROFIT : +1.6R Price getting rejected from Previous highs setup. Though
confirmation candle had small buying tail, still took it because price was looking stretched: -
weak reducing volumes on upmove Exit on signs of Bullishness
4/4: #M&M : PROFIT : +2.4R Beautiful Textbook style Price bouncing from previous lows
Setup after the initial down move. Exit before EOD
#ESCORTS from the Watchlist Some of you traded it today, Well done Price getting rejected
from previous highs, forming wick at high Volume, followed by Bearish Engulfing candle It is
one of my favorite stocks, mostly gives clean Price Action and good moves
: #JSWSTEEL : PROFIT : +2R A Multi TF analysis for this one In 30 mins, price showed a strong
rejection In 5 mins, rules were not fulfilled It was also forming HnS, took Short after price
formed a pin bar at high volume with selling wick and 2 bearish strong candles
1/4 : #BHARTIARTL :
There's a bad entry (Volumes were low, lesser than 20 MA and as compared to previous
candles. For reversal, it needed more) Hence a Loss I entered because it was close to Support
and had a number of Buying wicks, and a strong Bull Candle
LOSS : -1R As posted earlier today: I made a premature entry without Volume Confirmation
and paid for my mistake with a Loss
#ICICIBANK : LOSS : -0.5R A Good Example of why you Should NEVER Risk more on a setup
even if it looks great Perfect setup but price kept moving up, Exited after 2nd wide range
Bullish candle higher in Volume than previous wide Range Bearish candle
3/4 : #SUNPHARMA : PROFIT : +1.1R Downtrending day but price was slowing down. Buying
could be seen with those long tails with Volume, Entry was after Bullish confirmation These
setups will give tough fights because it's a reversal setup. Finally Exited after Wide Range
Bear C.
#SRTRANSFIN : PROFIT : +1.6R Similar to #SUNPHARMA, you could also see divergence in
both of these stocks using a traditional oscillating Indicator (MACD, RSI) Again Exit was when
price couldn't move higher despite good Volume and had selling wicks
