1. On 13 th Nov 2020, I wrote in my weekly blog about the green line taken out the condition and you can see it got fulfilled and gave Approximately 700 points is quoting my words of the statement in trading plan section point no.1" I marked a blue line if it is taken out in both time frame 1h & 15 min then I would like to leave my positional shorts. This means those who are positional short this the condition to get out of the position. ultimately a big move can be seen upside when the green line is taken out in both time frames. " Though condition got activated and gave 700 points first time in last seven months I was not comfortable with the taken-out condition and wrote in my group about the false break out, but before fall it covered almost 500 points. First, I discuss action around the blue line, I circled in red candle that gave a boost to the upside trend. Why in every post the marking I set for a change of direction works fantastically without fail with the help of taken out condition is a question which you should ask yourself and must find the reason for my marking by devoting time on the chart. Just three lines on the chart are enough to decide the direction of the price move. Now I discuss the reason why I was not comfortable though the price fulfilled the condition of taking out on the chart? See a white box, the candle showing loss of momentum took support on the green line whenever you see candle after taken out condition taking support is a sign of momentum loss. Do not try to find it in n book no book can mention this reading as it's purely my observation of charts in 15 years. Hundred of the house spends on charts. Next thing to observe today's market took support on the blue line that is why I mentioned a bounce in the group. As usual, my marking works magically. else you follow carefully. Many traders could not understand the reason for the bounce today because they are not good observers. That is their incapability of reading charts. This blue line is made two weeks ago still you could not see the magic of this line and beat around the bushes.
2. Setting the previous week figure to match with the current move.
Trade Plan for next week.
1. A white line is made if the price takes out in both time frames in 15 and 1hr then you will see the upside move.
2. On the contrary if the price takes out the blue line downside then a move can be seen to the red line. But be cautious after having taken out the blue line you have to put a strict stop loss because it can be false. Whereas If the red line is taken out downside in both time frames then a genuine downside move can be seen.
3. For new readers writing about taken out condition how it is being implemented. Taken out condition works in the two-time frame combination for daily( 4 hr + 1 day) analysis. Similarly, work for lower time frames is also a two-time frame combination. For intraday trades 1 hr with 15 min. For the taken-out condition, the price has to complete in both time frames. Aggressive traders can take that side position in a lower time frame with the stop loss of breached candle low. In both the time frames given line is breached by a candle that candle high is to be breached by the next candle and close should be above the previously breached candle. This is how taken out condition is being implemented.
Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.
Just before the second dragonfly doji, prev 3 candles made an evening star pattern also forming a shooting star on 15mins at the top for the day, indicating a pause to the bulls for the day untill the high of that candle is taken out. After that it formed the doji that you have mentioned and its gone sideways price action.
Incidentally, this shooting star got formed from the level formed on 19th where it has formed bearish belt hold candle at 1:25pm (on 5 mins) and the sell off had come on that day.
Attaching my personal demand supply analayis
Thank you sir