1. On 14th June 2020, I mentioned in that post is quoting for your consideration " I circled the pattern called piercing. The psychology behind it is very much clear that bulls found that price lucrative as on .so they came and bought aggressively closing price days high. Novice traders seeing this pattern will jump into long side buy positions. But intelligent will wait for next day trade to find out whether the entry is of weak bulls or really strong. In fact, this pattern is Warning for short traders to cover their shorts. Those who do not later part can be painful to them. Every candle speaks else you know its psychology behind it. I am not saying you just go and take long next day. with this candle, the price to reward is not comfortable. So let the price make it comfortable by coming to the red dotted line Then buy with the sl of bull candle low. I do not recommend this trade but aggressive nature can take this. I will like to trade when the price gets activated on the next day by closing above a bull candle. Here is also a problem If the next day is also good momentum day to the upside and take price away from the upper end of the blue zone then also risk-reward will not match. so in that case you will have to buy when blue zone lower end is breached upside and price stay above this level for 30 mins then can go long with sl of a red dotted line. Once price will stable upside then in next week lower end of the white zone is my target.". You can see word to word if you match the movement of this stock you will find the same. I told to let the price gets stable then buy, do not jump aggressively. See price took two days to get stable by making two then on the third day started the rally. As shared lower end of the white zone is my target. That has not been achieved. To understand this quotation with current pice, I set a previous chart for comparison.
2. In the current fig. price is at the blue zone if the lower band is taken out in 4 hr time frame then it can go into a red dotted and blue dotted line zone. Positional orders should hold their positional long until this zone is taken out in 1 hr taken out.
3. On the contrary, if the price is taken out of a yellow dotted zone then it can go to the upper end of the red channel upper band. This would be the final target of this stock.
4. On the other side, If the price takes out of a lower blue and red dotted zone price will come to the red lower zone.
5. In any case, If the lower red zone is taken out in the 4-hour zone time frame then uptrend will change to the downside. Those who are new readers of my blogs for them I share taken out condition how to implement is as follows:-
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 taken out condition 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 next candle and close should be above the previously breached candle. This is how taken out condition is being implemented. . The rest price is supreme.
Disclaimer:- All trading positions should be taken from consulting your financial planner. This is for educational purposes only.