I come across many times when people fall in trap when they see breaking of long term support or resistance in intraday by merely seeing on small timeframe (TF) like (1-5 mins). I suggest those friends to wait for the confirmation of such breakout on higher timeframe like 15-30 minutes atleast. In this example I would like to make you understand this psychology and how you can make most of it in intraday trading. Bharatforge started falling right from the beginning and broke its long term support at smaller TF and you can see how they trapped the bears. (You can see many examples like this on this day like which I traded in PEL (Horizontal support 1300) and BPCL (Trendline support) [Alerted on my Telegram channel] We could have initiated a countertrend trading when it came above the support but that I will not recommend if you are not pro. Instead, bharatforge formed a beautiful double bottom at this support (bullish piercing candle pattern as well). So, this trade becomes high probable with first target to swing high. SL to be maintained below the support. So, in intraday FIND SUPPORT / RESISTANCE and FIND PATTERN. This way you can make consistence profit. Thank You. Happy Trading
Any phycological reason about why double bottom results for strong reversal?
Retailer_ki_dost
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I will talk in my next tutorial about the breakouts which get missed due to high TF confirmation. I'll share the idea about 'How can we take trades in those missed BO in Intraday.