NO CLEAR VISION OF BNF DIRECTION ON 1ST JUNE SEE HOW?COMPARING MY YESTERDAY STATEMENTS WITH REAL MOVE IN TODAY'S TRADING.
1. In last statement point no. 3 of trading plan column quoting for your consideration " bnf has to continue down trend then red upper zone should be intact. on other side if market takes support between two blue area then chances of structure change to up side will prevail." N ow see today's trading price opened gap down took support of fist blue line and three hrs remained range bound then in last two hours touched red dotted line. Now here my highlighted point comes into play. In between two blue lines then chances to go up side intact. But price did not come between these two lines, rather took support and made range between red dotted line and blue line. Here It changed its structure which is purely dependent of bnf opening . If on next trading session bnf opens gap up then market choose to go into extension of long intermediate trend started from 17200.
2. On the other side if market gaps down and do not breach red dotted line then chances of going down will increase. For down trend confirmation price should take out blue first support. Remember taken out not breached. There is difference between taken out and breached ,new followers for your understanding I will attach the post that will clear this condition. As stock market is based on probability so condition should always be in mind of every trader.
3. I showed two arrows one green and second red . let us discuss both. If red dotted is breached by gap up opening or while trading then all shorts to be booked. Time your trade in long side. After beaching if price immediately come back under dotted line this time it will be assumed broken and find set up to trade in long side. Where as red arrow condition is different If price takes out blue line down side then shorts can be open only then this long trend will become deep retracement . Right now consider with today price action long trend.
4. If red dotted line is crossed upside then zone two will be target. For candle stick readers see I circled a hammer candle at support it was activated only when next candle closed above the high of hammer. only then chances of working this candles starts. See after that price moved up side. Any candle stick works near support or resistance when get activated. Other then support resistance or support very less chances of working.
5. structure is direction less all depends upon next trading session opening. Extensions in trend convert many trades into hope trades. so when your are wrong accept it and book loss in that trade rather to convert into hope trade. I see many new traders buy on resistance and sell on support this is suicidal act ,make it reverse while you take any position. This is basic principle of trading . Never ever forget my conditions while trading. This could be fatal to you in form of capital. When I mark my study on chart follow it . At least my study will work as dos and donts in trading. It is like a track where you have to drive your trading vehicle by time your trade. Rest market will decide.
YOGESH VATS
