The Ultimate Price Action Breakdown Strategy Preface
Alright, the operation started after creating an extreme low at 120.20. Price has created an upward channel from the extreme low, where the equilibrium has occurred between bull and bear traders. Control line has given eleven touches, which shows the strong gravitation at the middle.
Here, we can see four reversals on the upper band, and three reversal points occurred on the lower band.
We have two opportunities:
1. Now, the price is on the H-line, and the breakout of the h line indicates the lower band touch.
2. Bull can buy at excess, or they can enter at reappearing in the value area for the target of the control line.
Every beginner who wants to start trading with naked strategy (without indicator) can use this method because the price is the thing that will pay you.
Let me explain to you important aspects of the breakdown strategy.
Value area:
A zone in which bulls and bears both are satisfied to stay within it.
In this zone, supply and demand equally exist.
Ascending Value area:
Range-Bound Value area:
Descending Value Area:
Value area has two bands:
Upper band:
Upper band indicates demand-supply.
In this chart, the price has taken four reversals from the upper band to maintain the equilibrium.
The upper band put a stop to the bull power.
Lower Band:
The lower band indicates demand pressure.
In this chart, the price has taken three reversals from the lower-band to maintain the equilibrium.
The lower band put a stop to bear power.
------------------------------------------
No trading zone:
In order to respond to either bull or bears initiative, the price creates an area. In which no trading activities have taken.
It helps to find the weakness of any particular move.
------------------------------------------
H Line:
After completing the last share move, the price creates the bulk trading activities, where bulls' power becomes dull.
Breakout of the H-line indicates the cease of the particular move.
------------------------------------------
Excess:
Excess is regret and fake-out.
In simple words , price breaks the upper band and again re-enter into the parallel channel.
Buying or selling at the excess is the perfect deal. An excess is a signal of reversal.
The psychology behind the control line :
Price is forming in the parallel channel, but bulls are not satisfied with the current trend. That's why bulls increase demand pressure to break the upper band of the value area. After breaking the upper band, bulls face some problems with profit booking. Now, bulls realize that the price is not going up. Bulls give up on the thought of trend change. Bears were watching this patiently. And after they realize that prices are too high, they increase supply pressure above the upper band of the channel. Now bulls are out of the market, and the seller has maintained the equilibrium & Vice versa.
------------------------------------------
Control line:
The Control line is the gravitation point of any value area. We can draw by connecting the reversal points in the middle.
The more the points are available, the higher the effectiveness.
Please note that the price can not stay away from the control line of the value area. We can use it as a price target or breakout trade.
Here, the price has given eleven touches on the control line.
------------------------------------------
Breakout or breakdown of the channel:
Bulls and bears both disagree with the current price trend.
Either bulls or breaks out the value area by giving consistent closing.
It often happens after a complex correction or trend change.
I will upload practical work on this idea. Kindly wait for the implementation.
Thank you for your support.
To be continued.....
Priceactionstrategy
How to better time your entry and exit in Swing Trading?This charts shows the possible areas where one can look for trading opportunities (through Price Action Strategy) and be profitable from it. Swing Trading is better for beginners in Stock Market and Price Action is one of the ways to approach Stock Market. Through Price Action, one can identify the current market structure (uptrend/downtrend/sideways) and so better trading decisions can be made, which will pave way to better time entry and exit. Drawing trendlines, patterns, support and resistance and reading candlestick patterns are some of the ways in Price Action Trading. A good price volatility of a stock is essential especially from the traders perspective, as traders tend to make profit from the market using its volatility. Another important thing in taking up a trade is choosing the right Time Frame because in terms of volatility many of the stocks would fit into 1 Day time frame, some stocks would fit into 1 hour time frame, 4 hour time frame or 30 mins time frame etc. With all this in consideration, one can be expected to make entry in breakouts and shorting in breakdown. One should manually go through as much charts as possible and add to their watchlist that fits into their strategy. This roadmap is one of many ways to approach trading in Stock Market. This is just for Educational purpose. Thank You
How I got 10 points in BANDHANBNKBANDHANBNK was in my radar from last three days, since yellow trendline was tested by many times hence it became weaker. Today morning when price crossed pink line which was yesterday high, i entered into the trade 276.45 with SL 266 below the yellow trendline and keeping the momentum in my mind because of expiry day I took R:R 1:1. and booked my profit at 286.25
Like & Comment if you learn something from this post.
Missed BD in M&M, however captured 5 pointsI have selected M&M yesterday for Today session(8th June 20) since it was forming a nice pattern in 15min TF.
I missed the BD, however i have entered once price crossed the pink line(previous day low) and got 5 points. Target was the green line(day before yesterday low).
Entry - 474.9
Exit - 469.5
Please like & comment, if you learn something from this post.
BERGERPAINT NEAR FIBO LEVEL AND TL IS FORMINGBERGERPAINT is near the import fibo level and TL is also forming, once crossed 520 can be good for long.
