Candle Speak it ALL...no rocket science...MAking trading simple.Speaking Candles:
This is a 15 chart of Nifty Bank last Friday session as on 9/8/19.
Candles are so accurate when they try to tell us the next upcoming move.
So, here we will discuss the candle formation marked in the red coloured box.
The first candle is green with a small wick and also closed above last 3 days high.
Now why the immediate candle is red. The big scalpers booked profit here and it has a tail which tells us that index is rejecting the down prices. It also means the index deserves much higher rate as of today.
Now, lets come to the 3rd and the 4th candle, again both having wicks and one can assume lower price rejection. So hold the longs since morning.
Here the 5th candle touches the Daily R1 but has
heavily seen buying and closed above R1, Still staying long in the market.
Now please observe minutely, 6th and 7th candle.
One with a wick is green and one with a tail is red.
Here starts the tug of war between the Bulls and Bears.
Now 8th and the 9th candle went up as the 7th candle showed lower
price rejection.
10th candle again showing lower price rejection which helps the candle
11, 12, 13 and 14 touch the higher resistance.
Now think the reverse, we have started getting wicks with the resistance approaching near forming tiny indecision candles at the day's high.
What next?
Wait for a signal??? Yes indeed.
Look at the 17th candle its a dozi and that too at days high and touching the resistance the 4th time.
Second confirmation is: look at candles 14 -17. All having wicks near the resistance.
So, now one can initiate a Short trade with the SL of the above Green dotted Line. How beautiful the candles speak with us.
We just need to understand their language. Max. 2 trades in Index per day are more than enough.
Don't over trade.
