1. On the 21st of July 2020, in point no. 2 of the trading plan I clearly wrote the possibility of range-bound trade is quoting as proof of my statement ". If price open gaps up and does not sustain in 15 min come back to the pink line then it means the price is going to range-bound in the coming hours between the pink and red dotted line. " Here you can see price opened gap up and did not sustain come back under pink line and later on in three days remained range-bound yellow line showing this move. Can you imagine nifty remains in this phase three days already manifested four days back? If a trader is having this much information then trade can be easy just by seeing small - small clues price provides.
2. The first clue on July 22, price opened up and could not sustain by making a Range candle many of you are not aware of this concept, this time price gave me the opportunity to discuss with you. To see the effect of this information. I quote one statement of the previous post in point no.1 of trade plan " I made a pink line to move to the green dotted line it has to be taken out in 15 min time frame only. Because the white line is already taken out in a 1-hour time frame. Now the days market is moving with a little different style. That is after taken out condition it goes into range-bound trading." Here this statement clearly shows if the market takes out in 15 min the whole day price did not take out the pink line on July 22, in this time frame. Plus I was talking about a different style of market. i.e after taken out came into range-bound trade by triggering sl. Range bound candle was a clear indication that the pink line is not good for taken out condition. The new resistance is the high of range-bound candle would be used as taken out condition. Had I updated my post the next day, You would have got that information. As you know with my engagements do not find the time .
3. I circled an uptrend in green then market made range candle not taking out the low of this candle even took the support of white line shows price is going into range til high of this candle is taken out. Same seen in price action later on for three days. I saw some comment traders considering still the pink line for taking out. That is because I last four months this type of case was not seen in price action so how could I discussed earlier. Today I showed this classic example in detail. so that this sort comes in future you all candle it.
4. Now discuss the stop loss for the taken-out condition assuming for while that pink line is actual line fit for this. See candle no. 1 breached the pink line then my sl would not be the low of that candle. It would be the candle showing some buying pressure that is the previous candle. And you see price haunted the low of this candle and resumed its an uptrend. So always remember stop loss will not be exact low of that candle you need to provide some buffer of some points. This stop loss should be used by positional traders. Intraday traders once put the stop loss of previous candle low then trail it. I know after discussing in such detail there will be few traders who will not put his efforts to understand it rather will ask some low intelligence questions. Because of putting their own efforts. Setting the previous fig for your better comparison of my statements with the current one.
Trading Plan for the next day.
1. Since I shared how the taken-out condition changes with range candle so the pink dotted line is now next taken outline if it is taken out in both time frames then green dotted line is next target. Aggressive traders can take a position on the long side when one condition of 15 min is fulfilled but with the stop-loss of 1 hour breached candle. Always put like this for aggressive traders. I prefer let the position satisfied both times then go on that side.
2. On the contrary, if white line is taken out on both time frames then red dotted line will be the target. If you get brown color above the red dotted line then it will be the target.
3. If green dotted line is taken out in both time frames then white upper line will be the next target. For new readers, I write taken out condition which 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.
Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.
" Dragonfly doji in an uptrend. if high of breached candle breached this candle but close it below its high is a valid pattern and price should move down"
Is this statement valid in Nifty intraday today as this candle we see as hourly not daily.
Earned 60points based on taken out condition at pink dotted line.
BnF-Took short trade after yesterday low breach, put my target as 21600 but price reached very near to it and then came up and hit SL.
This is happening freuqently,being in profit for most part of trade and then hitting SL,,
Thanks for enlighting us about choosing SL in recent posts ,,,,,,
will be really helpful if you can teach how we can adjust our targets based on price movements and exit in profit in most of these type of trades.
Thanks for all the learnings and guidance.