Here i want to discuss price action especially yesterdays action. I have highlighted the candle formed yesterday. You have read about the candle stick pattern of Doji
, long legged doji
. Here this candle stick shows the agreessiveness of lthe war fought in between bears and bulls. i want to analyse few things about the price action. though previous bar made high of 374 but it closed at 370, yesterday price opened at 374 and aggressively within half an hour market opening it started making high of 383, that is almost four percentage of previous close threatening the people who were short previous day and also the people short since many days, when it tested that price where 50 day moving average , price couldnot dare to cross that level as that moving average was strengthened by all the price action of shorts, then the fierce battle started between the bears and bulls, here i in the war many stoplosses have triggered and money had been lost by many short term sellers,. and they must have been gone for cover to exit a when little pull back has been taken, price went back to 369 , then all the people who were aggressively short have covered the shorts, so due to short covering price has been pushed to the level of opening price. suggesting the neutral stance of price action, this is how money is lost and made,. when price is making range d bars at the key levels on daily and weekly chart, it is wise to stay away form the scene not to trade,. now what may happen tomorrow, when shorts have been eliminated temporarily price may see go up but sellers are still there at the very higher price which is called as resistance. SO IT BECOMES VERY IMPORTANT TO STUDY THE PRICE ACTION AR KEY SUPPORT LEVELS.