praveen.bhatiya
Short

Action/Reaction Bollinger Band Setup

NSE:BATAINDIA   BATA INDIA
AR set is suggesting that price has reached the level where one can expect a reaction. We have seen bearish engulfing exactly at the level thus one can short the stock with SL of recent high. Price expectation 740/700.
Disclaimer : All ideas and comments are my personnel view. Please take financial consultancy for trading decision.
Trade active
@Einstein15, Just found another good example of Gap CL. Please have a look
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Einstein15 praveen.bhatiya
@praveen.bhatiya, Such a clean jump above the CL. But dosent the pivot need to be lower than the most recent swing low that breaks the CL ?
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@Einstein15, Couldn't get your point. Please mark how do you think ?
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Einstein15 praveen.bhatiya
@praveen.bhatiya, in this post--> scrolling down to the CEAT example, where you said " Dr Andrews has taught to take previous Low/High (for action line)"
so i guess i assumed that the pivot that we use to draw the Action line, has to be lower in this case than the pivot that breaks the CL


So in hindalco,i if price was to make the move like the green lines then point A is lower than the B which should be used for AL. is what i thought. Coz all this time i hv been looking for setups where there are swing lows that are lower than the leg that breaks the CL
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@Einstein15, I think there is some misunderstanding on it. I am copying the relevant text from the study material, "Once the centerline is drawn, the next step is to locate a previous low or high pivot point to use for drawing an action line. Dr. Andrews observed that the low pivot points often seem to work best, but that either could be used." Does it bring clarity?
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Einstein15 praveen.bhatiya
@praveen.bhatiya, Got it. thanks.. I thought it was a necessary condition that there should be a pivot point lower than the most recent pivot.
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Einstein15 Einstein15
@Einstein15, So this is a valid setup, assuming the CL is clean. NIFTY Hourly
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Einstein15 Einstein15
@praveen.bhatiya also this, if it crosses CL. TATASTEEL Daily-->
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Einstein15 Einstein15
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@Einstein15, correct !
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