Whenever you see a higher time frame chart you should ask 2 questions --
1) What trend is the market in ?? 2)where are major levels of structure that you should be paying attention to - in that direction ?
SO in the chart i have shown above the answers are following
1) Trend is bearish 2) Major levels of support and resistance are drawn in Horizontal blue lines
How did i draw blue Horizontal blue lines ?? Those blue horizontal lines are levels of support / reistance which has been tested atleast 3 times
So i shall now proceed to tell you the story of Escorts as per the numbering i have done on the chart
1)Escorts made a high on 22 nd march making a high of 834 -(which is never broken till now) 2)Escorts made a low of 782 on 25 th march 3)Escots made a lower high on 27th March making a high of 826 (thus making a new trend setter) 4)Escorts made a lower low on 8th April - 752 (Thus making it a trend continuation & the Down Trend is confirmed) 5)Escorts made a lower high on 16 th April - 801 6)Escorts made a lower low on 16th May 2019 falling dramatically to a previous support level - 542 7)Escorts made a lower high on 21st May 2019 - 614
So Now what is Next in Escorts ???
Again ask the same questions which i said in the beginning & you will get the following answers
1) Trend is Down 2) Horizontal blue lines are areas of Support and resistance
So unless you do not get a daily close above 614 (which is an area of resistance) - do not attempt to go long.
If you are short - keep stop loss at 614
Your target should be level of previous support - which is 514 (100 points)
Presently Escorts is trading @ 594 - sl for shorts is @ 614 (On daily closing basis)
Comment
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The important thing here is
As written above
Whether we get a Daily close above 614 today ??
Please read carefully !
Trade active
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Shorting is active as long as it does not give a daily close of 614
The important price action is 614
only in case there is a daily close above 614 - you need to close the short position
if you like the post - do like the post - to motivate me for further posts like these
Trade active
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Comment
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todays close below 614 ; so trade is active - i shall update on regular basis
Comment
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if todays close is above 614 - please exit the trade
what is the SL ??
Is it 614 on closing basis ??
Today it closed @ 602
Anyway good insight !!
Although today it went up to 621 , it gave a closing below 614