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vanathi
Jul 10, 2019 1:27 PM

Trader's Queries - Part 2 of finding trend direction Education

TATA STEEL LTDNSE

Description

This is a classic example for explaining "tails". Price was nearing the support and both buyers & sellers were trying to take control. This was expressed by upper wick & lower wick candles formation. Support was at 462 - 464 levels. Whenever we saw battle between buyers & sellers, we have to wait for few minutes so that we can get trend direction confirmation. Jumping in to the trade seeing "tails" and buying was not a good idea.
Remarkable points: Trading is a waiting game. And winners are the traders who have patience.
Price broke the support and had nice fall. I have given the part 1 in the link below.
Therefore "tail" got negated below 462 - 464 level.

Comment

Tatasteel in lower time frame gives clear picture.
Comments
abhi.rus
Now that's an example for fight between bulls vs bears rather than simply chasing tails, that's called experience.
vanathi
@Abhi.rus, Trading skills get developed by experience.
anbulina
Really superb explanation, from second candle bears take the control and stock moves south.... is there a way to find out the stocks for shorting or we can look for stocks nearing support zone..
vanathi
@anbulina, Thank you. Sector wise also price fall/rise.
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