Query: When the market changes direction, I am unable to adapt. How to overcome it?
Answer: I was thinking about this topic in the morning, and nifty itself gave the exact scenario. So we will take today’s price action and understand the trend direction change. Before going into the technical, we should know that humans can adapt to any situation. We are designed in that way. Because of our emotions during the live market, we forget that we can adapt.
Sometimes the trend direction changes fast, sometimes it takes time, like today. When it takes time to change direction, we have time to adapt. Do you agree?
Price took 3 hours to consolidate within a narrow range before deciding the direction. Mark the range. And take entry when the price closes above or below the range. Spike will be less in a higher time frame. In this chart, I have taken a 15-minute time frame.
Do indicators help?
Yes, it helps. You can see RSI in the chart, and it is in an overbought area when the price was consolidating. Any bearish sign indicates a bearish scenario. Once the RSI crosses the MA, the price breaks the range and falls.
When price gives time to decide what to do, make use of that opportunity. Price action, support/resistance, and indicators like RSI, MACD can help you to understand the direction change.
Every time the market gives a different scenario and I have explained one scenario with an example. Hope it helps. Keep learning. Keep growing.
Answer: I was thinking about this topic in the morning, and nifty itself gave the exact scenario. So we will take today’s price action and understand the trend direction change. Before going into the technical, we should know that humans can adapt to any situation. We are designed in that way. Because of our emotions during the live market, we forget that we can adapt.
Sometimes the trend direction changes fast, sometimes it takes time, like today. When it takes time to change direction, we have time to adapt. Do you agree?
Price took 3 hours to consolidate within a narrow range before deciding the direction. Mark the range. And take entry when the price closes above or below the range. Spike will be less in a higher time frame. In this chart, I have taken a 15-minute time frame.
Do indicators help?
Yes, it helps. You can see RSI in the chart, and it is in an overbought area when the price was consolidating. Any bearish sign indicates a bearish scenario. Once the RSI crosses the MA, the price breaks the range and falls.
When price gives time to decide what to do, make use of that opportunity. Price action, support/resistance, and indicators like RSI, MACD can help you to understand the direction change.
Every time the market gives a different scenario and I have explained one scenario with an example. Hope it helps. Keep learning. Keep growing.
Role I play here : Moderator. Follow me in telegram to trade better. t.me/Analysis4Newbie Contact information : tradingplan4u@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Role I play here : Moderator. Follow me in telegram to trade better. t.me/Analysis4Newbie Contact information : tradingplan4u@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.