WHEN MARKET TRAP YOU HOW YOU SHOULD TAKE DECISION!!
HOW I TRADED WITH YESTERDAY PLAN
1. IN YESTERDAY POST I SHARED YOU THAT I AM BULLISH AND CARRIED LONG POSITIONS .IN MORNING FRANKLIN TEMPLETON NEWS TRAPED MY LONGS BY GAP DOWN OPENING. SINCE TRAPING THROUGH NEWS IS PART OF MARKET. SEE A BIG GAP OF ALMOST 575 PTS APPROX MADE BY BNF. FOR ANY TRADER THIS SITUATION IS PATHETIC. ONE NEEDS TO DECIDE THE NEXT STEP IN TRADE. I WAS ALSO STUCK IN SAME POSITION . AS PER PLAN RED COLOR EXTENDED LINE IS THE AREA WHERE SENTIMENTS WOULD CHANGE ,DISCUSSED YESTERDAY. PRICE EXACTLY OPENED AT THIS LINE CIRCLED IN WHITE. IN THIS HR PRICE BREACHED IT BUT RECOVERED IN SAME HR. THAT WAS THE CLUE FOR ME REGARDING BULLISH SENTIMENTS ARE INTACT. SO I WAITED THREE HRS . MARKET SPEND THIS TIME IN CONSOLIDATION TESTING MY PATIENCE SEVERAL TIMES. THIS IS THE NATURE OF MARKET. IN FOURTH HRS IT GAVE A RALLY OF ALMOST 400PTS THAT WAS GOOD NEWS FOR A STRUCKEN POSITION. IN FIFTH HRS WHEN BNF TOOK RESISTANCE OF MY GIVEN BOX LOWER END CIRCLED IN PINK. I WAITED TO BREAK THE LOW OF PREVIOUS CANDLE AND COVERED MY POSITION SHOWN IN RED ARROW. THIS IS THE TIME AND POINT WHERE ONE SHOULD EXIT. ONE DOESNOT KNOW WHERE PRICE WILL STOP ATER BREAKING RED SUPPORT LINE. BNF BREACHED RED SUPPORT INSTEAD OF GOING DOWN IN SIXTH HRS CANDLE MADE A PAUSE ONE. THAT SHOWED ME RED SUPPORT IS NOW CONVERTED INTO SUPPORT ZONE. NEXT 15 MIN IS BUYING CANDLE.
2. HERE I ASSUME THIS MAY BE LAST LEG OF WAVE STRUCTURE OF CORRECTION. HOPING A GAP UP OPENING AND FOLLOWING GREEN STRUCTURE SHOULD BE FOLLOWED ON MONDAY. I MIGHT BE WRONG AS I ALWAYS SAY TRADING IS GAME OF PROBABILITY . NOTHING CAN BE 100% SURE. TRADER FINDS BEST SETUP TO TRADE. OTHER TWO STRUCTURE IN RED AND WHITE CAN BE FOLLOWED . I SHARE POSSIBILIES OF STRUCTURES. AND WAIT TO SEE WHICH STRUCTURE IS GOING TO BE FOLLOWED WITH PRICE ACTION. THEN I FIND TRADE SETUP IN THAT DIRECTION. TODAY WAS A TRAP DAY FOR ME .I CARRIED LONGS FOR MONDAY . I WILL BE BEARISH IF WHITE TREND LINE IS TAKEN OUT.REST MARKET WILL DECIDE.
1. IN YESTERDAY POST I SHARED YOU THAT I AM BULLISH AND CARRIED LONG POSITIONS .IN MORNING FRANKLIN TEMPLETON NEWS TRAPED MY LONGS BY GAP DOWN OPENING. SINCE TRAPING THROUGH NEWS IS PART OF MARKET. SEE A BIG GAP OF ALMOST 575 PTS APPROX MADE BY BNF. FOR ANY TRADER THIS SITUATION IS PATHETIC. ONE NEEDS TO DECIDE THE NEXT STEP IN TRADE. I WAS ALSO STUCK IN SAME POSITION . AS PER PLAN RED COLOR EXTENDED LINE IS THE AREA WHERE SENTIMENTS WOULD CHANGE ,DISCUSSED YESTERDAY. PRICE EXACTLY OPENED AT THIS LINE CIRCLED IN WHITE. IN THIS HR PRICE BREACHED IT BUT RECOVERED IN SAME HR. THAT WAS THE CLUE FOR ME REGARDING BULLISH SENTIMENTS ARE INTACT. SO I WAITED THREE HRS . MARKET SPEND THIS TIME IN CONSOLIDATION TESTING MY PATIENCE SEVERAL TIMES. THIS IS THE NATURE OF MARKET. IN FOURTH HRS IT GAVE A RALLY OF ALMOST 400PTS THAT WAS GOOD NEWS FOR A STRUCKEN POSITION. IN FIFTH HRS WHEN BNF TOOK RESISTANCE OF MY GIVEN BOX LOWER END CIRCLED IN PINK. I WAITED TO BREAK THE LOW OF PREVIOUS CANDLE AND COVERED MY POSITION SHOWN IN RED ARROW. THIS IS THE TIME AND POINT WHERE ONE SHOULD EXIT. ONE DOESNOT KNOW WHERE PRICE WILL STOP ATER BREAKING RED SUPPORT LINE. BNF BREACHED RED SUPPORT INSTEAD OF GOING DOWN IN SIXTH HRS CANDLE MADE A PAUSE ONE. THAT SHOWED ME RED SUPPORT IS NOW CONVERTED INTO SUPPORT ZONE. NEXT 15 MIN IS BUYING CANDLE.
2. HERE I ASSUME THIS MAY BE LAST LEG OF WAVE STRUCTURE OF CORRECTION. HOPING A GAP UP OPENING AND FOLLOWING GREEN STRUCTURE SHOULD BE FOLLOWED ON MONDAY. I MIGHT BE WRONG AS I ALWAYS SAY TRADING IS GAME OF PROBABILITY . NOTHING CAN BE 100% SURE. TRADER FINDS BEST SETUP TO TRADE. OTHER TWO STRUCTURE IN RED AND WHITE CAN BE FOLLOWED . I SHARE POSSIBILIES OF STRUCTURES. AND WAIT TO SEE WHICH STRUCTURE IS GOING TO BE FOLLOWED WITH PRICE ACTION. THEN I FIND TRADE SETUP IN THAT DIRECTION. TODAY WAS A TRAP DAY FOR ME .I CARRIED LONGS FOR MONDAY . I WILL BE BEARISH IF WHITE TREND LINE IS TAKEN OUT.REST MARKET WILL DECIDE.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.