What is a BEAR-TRAP? --> BEAR-TRAP is a condition in the market where the Price gives a Breakdown below a Potential Support zone but quickly Reverses back above the Support without giving a follow up bearish candle. Why a BEAR-TRAP occurs? --> Big Players who are bullish on a specific stock would be wanting to buy a big quantity of shares at the...
Trading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation. Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader. Now lets see about the important key points to consider to confirm such valid breakouts TYPES There are different types...
One thing that is a problem for novice traders is the lack of repeatable trading setups. Manually scanning through charts every day is counterproductive. One might take a trade just for the sake of it if they do not find anything worth trading. This pattern can be scanned very easily on charting platforms. Lack of patience is very real during early days as a...
Psychology and Behind the scenes stuff: 1. At the BO, there was a massive bullish candle with a very high volume. This took out the previous resistance level. 2. The retailers saw this opportunity because the price closed above the previous resistance. Hence, they entered Longs. 3. The BO was followed by a Doji and then a Bearish candle. This indicated no...
Underlying logic: 1. The market already gave 11% in the impulsive move and created a high. Obviously, the momentum was fading out. 2. If you recall my lecture on market structure, you already know that after the creation of a high, we must come down to create a new higher low. The market cannot keep making new highs without creating a higher low. 3. There was...
A lot of retailers may have gotten caught in this fake breakout in TCS. I provided that rough path (which I anticipated it would follow) in my original idea because I believed the conditions were not right for a breakout at the moment. The majority of the time, we cannot avoid getting trapped in fake breakouts. But in the recent case of TCS, the fakeout could have...
people often mistakenly see this signal as the morning star signal and book losses. this signal does not fulfill a very necessary condition of the morning star signal, ie., the third day candlestick does not penetrate at least half of the first day black candle which is of utmost importance!
In Tata Motors you will notice that after the trendline breakout there was a panic selling, traders who have short there and thought it was just a retracement when the price was reversing were trapped This is also a fakeout Setup Where smart traders went long! If you are passionate and want to learn this kind of Professional Price Action Techniques You can contact me
Only with the PRICE ACTION you will be able to trade this moves which provides you great R:R If you are interested to learn those price actions skills and implement them in your trading setup feel free to contact me!
What is Eos ? EOS stand for Edge of Space. It is basically a line drawn at the previous Swing High or Swing Low. If the price breaks and closes below the previous swing low making a new lower low, we say that the market wants to go down. However, if later the price rises and cloese above the EOS line, (which might be the case with RCom), we consider it a fake out...