yvatsji

HOW TO IDENTIFY FALSE TAKEN OUT CONDITION ON CHART ?

NSE:NIFTY   Nifty 50 Index

Hi Traders,
1. On 16th Nov 2020, I wrote in my weekly blog on nifty regarding the movement of price in trading plan section is quoting as proof of my statement" A green line is made upside which if taken out in both time frames 15 Min & 1 hour will give you more upside move. On the contrary, it could not take out then get ready to see range-bound trade to redline, if the price does not take out redline downside in both timeframes." Here you can see in the chart I made a red color circle this is called a bearish belt hold pattern and could not activate taken out condition this time. On the second day of trading, this condition got activated marked in a white box. As you all know once the condition gets fulfilled then we must see the upside. But this time price made small candles inbox which was all negative, one of them was a hanging man bearish signal that gave information of a false break out. The same happened price could not trade above that Area of the box. Giving clear indication of false taken out activation. And see in a statement, I had already mentioned one week earlier that it will take support on the red line and would be range-bound. See clear support at redline and became range-bound. How fantastically, I depicted the whole weekly move much before the real action. Many people say, Sir, I have finished all books recommended by you in six months please suggest another one. I ask them were able to draw that explanation from price movement. If yes then you are great otherwise go back to read all books, you need many hours of practice. I know nobody could extract that information, otherwise, she/ he would have written publicly with pride. Those who discuss useless talks ask themselves, where are they standing in terms of candlestick analysis? But want to be profitable every day. This is the reality, unable to understand this. On my group's very first day of trading, I warned about the false taken-out condition. Though these box candles were not made at that time. This is because of friendship with charts for 15 years. If you make friend, you will be able to manifest the same.

2. In every chart I put one three lines that decide the direction of the trend. Did you notice this time also set the red color line price could not go beyond that level and showed you range-bound trade? How precision is marked on the chart. Even earlier I used to mark level for whole 15 to 39 days move, many of you have relished that manifestation in form of profit. Now I give one weekly view just to wake you up from the deep slumber of standing your own by putting your labor not mine. Setting the previous chart for your consideration to match my statement with current fig.
TRADE PLAN FOR NEXT WEEK

1. See in fig I made a black line as resistance if it is taken out in both time frames of 15 Min & 1hrs then you would see price moving upside and crossing the white line, you would see momentum in the move.

2. On the contrary, if the red line is taken out, you would see a downside move but it would be limited I know the level but now you find yourselves.

3. For new readers writing taken out condition so that you could understand and use in your analysis.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 the taken-out condition, the 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 the next candle and close should be above the previously breached candle. This is how taken out condition is being implemented.

Yogesh Vats

Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.

Comments

Sir, today in the 15min TF of Nifty when 12830 was breached at 11:45 and then next candle closed further below, I initiated short position in Nifty expecting further downside but was taken by surprise with the strong reversal soon after! Though there was resistance at black line @ 12920 but towards end that was also taken out on upside. Today;s trade was it about switching sentiments immediately or was there any reversal indication from downtrend. Please help to understand. Thanks
Reply
yvatsji mrhariA7
@mrhariA7, First I gave black line where I mentioned that once taken out you will see upmove that you saw it gave App 250 points from line after that it met with resistance and came back in range of black line crossing down means the importance of black line is gone. Had price stopped at that line without breaching it down the it was important. Rest your timing of trade was bad there was no logic of trade at that point.
Reply
I used to take both PE and CE short considering the levels which have more OI in the Bank Nifty chart, its works in normal days, but it hit back
when there is a sudden fall happens. Today also the day of loss almost 6k gone. I do follow your advice, but unfortunate, I missed it today. I appreciate your
great effort to educate others and hold hands with us to take the trade.
Reply
yvatsji akhilaabheesh
@akhilaabheesh, see the comment box of today's remark one hariredy wrote his trade and earned 450 points check it and try to see patterns made on charts.thus will help you.
Reply
Hello Everyone, I would request you all to please share your daily trades either profitable or non profitables. We are all here to learn and without interacting/Sharing our trades its not possible. Dont be shy and feel what others may think about our trades. Think what feedback nd learning we may get from Yogrsh Sir. Many times Sir requested on this forum to be interactive please do so.
Reply
Hello Sir , Initiated Long after seeing Hammer formation on NIFTY 05 Min at 10:45 took trade when 11:20 inverted hammer (bearish continuity) candle failed by next candle. than received your message regarding uptrend and I was confident with my trade. My stop loss was closing below today low which occurred on 13:50 candle and I exited the trade. Just saw your message regarding exit from longs as well. Today again loss booked of Rs 2200.00
Reply
yvatsji Jash_k
@Jash_k, I myself changed my positions three times because the first fall did not confirm a reversal that is the second pullback confirmed reversal, so when this sort of sentiment prevails then trading becomes difficult. In this scenario, one would try to make their losses low. Because the next day when you catch the move then ultimately become profitable.
Reply
Jash_k yvatsji
@yvatsji, Thank you Sir for providing feedback on our trades.
Sir, I want to start taking positional, however only with CE and PE for weekly expiries. Should I start with Nifty or BNKnifty ? and what would be the right approach. please guide us on this.
Reply
Thank You sir,After your message i cleared my positions for shorting nifty and holding only pe position sell side far out of money and after your message strong buying is also seen.Kindly help us like this by spreading your knowledge.
Reply
Hello Sir, Initiated PE after seeing Shooting starts on 05 Min at 10:00, 10:25 and Hanging man at 10:55 and confirmed. Also the BKnifty did not breached the white line. for me overall picture is downward for today. Price went down when I took trade however moved back to upper levers. As of now 1000 rs Loss. I will close the position once price closes above the todays high.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out