Why we fail. Because, once we see a level; jump into the trade immediately and market turns the other way round.
There are two parts of trading/investing/swing trading or intraday:
1. Analysis
2. Execution.
Analysis is important and sometimes we may work on the judgement of other analyst also. But, execution is the thing which we have to do. There we fail. Let me tell you that to succeed execution has more weightage than analysis. Let me use the as an opportunity and let you know how to trade.
Have a look at IH Chart and the rectangle drawn by me.
Lets analyse it in following steps:
1. Price fell till the level of 3152.25 till 9:15 on 14th August 2023.
2. Made a high at 9:15 on 17th August 2023.
3. Now, the intention of big players may be to go long from this level but this will not happen immediately. Will take some time, why? Because the big boys have to collect a desired level of the stocks at this price and then sell it to small investors at a high desired price giving them a decent return. This is called the Accumulation phase in terms of Wycoff Theory.
4. Now, how this will happen, let us understand. In terms of Elliot wave Theory, it is called formation of ABC Ways. Lets deep dive and understand.
5.You can see that for the last 7 days (time analysis) price is stuck within this rectangle (price analysis) and the smart money is trying to accumulated the stocks within this range to sell/distribute to retailers are the higher price. for this we will have to do the volume analysis. In short, we have to read volume at all the levels or take the help of SAMs/ EMAS. In all the cases, price will exceed firstly SMA8, then 20, 50. 100 & 200. this process with take around 14 to 21 days and then the price will shoot up above high of previous swing. There we have to buy. How volume analysis is and risk management is done, we will discuss somewhere in next post. Patience is the key. Learn and Earn.
Conclusion: If the price of Asian Paints has to reverse from this level, please read 1H or lower time frame chart and wait for next 2 to 7 days and you will succeed.
Happy to share. Let's grow together.
