NSE:NIFTY   Nifty 50 Index
Hi Traders,
1, On the 21st of November 2020, I wrote in my weekly blog on nifty about two lines with the same condition for each line in trading plan section point no.1 is quoting for your consideration as proof of my statement. ". 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."
Here you can see once the price took out in both time frames and crossed it gave you the app 250 points in one day a yellow color line showing you that momentum. even after a gap up the whole day. Earlier I used to ask why all levels I mark so reactive that price needs to give reaction from them in my previous post. Since I stopped giving them. Now I ask you why I put only two lines very near with current price action and when taken out condition gets activated you see the momentum on that side. This is what every trader should achieve her/his analysis.

2. Now I talk about the technical insight to see charts as your lesson, see a pink color circle showing a bearish belt hold in the opening of price in the next session. clear to show you the power of the black line marked in fig and one-hour kept price downside, once opened could not dare to make another high and second hour too down. But the second-hour candle is Dragonfly Doji which took the support of 27 Ema means to absorb selling and the third candle was bullish did not touch Doji candle low proving any sellers pending and took the price again to black line whole day.
But until now taken-out condition did not activate. Point to be noted had belt hold to work then instead of dragonfly any bearish candle should support there but that was not case so odd is to upside. And same happened price reached the black line and the next day was a gap up the opening with the bullish candle of one hour is conformation to initiate long without hesitation to the next level of imminent resistance. See I marked a bearish candle with a red circle and the next candle was a big bearish candle had this candle appeared after the bearish belt the trend would have changed. If you extract information about price behavior like this then your insight will develop to see the hindsight.

3. I make a white rectangle showing a cluster of the bearish candle showing weakness. Setting the previous fig to compare with the current to check my statement proved above.
Trading Plan For Next Week.

1. In fig I marked a green line if it is taken out in both time frames of 15 min and 1 hour then you will see the upside.

2. On the contrary, If the red line is taken out in both time frames then the downside. If it happens then I would suggest surrendering any long side positional trades because the whole week price will remain low from the high made this week.

3. For new readers writing taken out condition how it is being implemented. 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.


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