NSE:NIFTY Nifty 50 Index
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 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 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 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.
Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.