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Overbought-condition

Oscillate The Right Way: RevisitedFor all the basic stuff that I am using in this post, you will have to visit the following idea. This post is in continuation of SBI weekly divergence study.. Abbv. used: Overbought -- OB Oversold -- OS Divergence -- Div A-- OB B-- Div after OB at A C-- Double top and Div Multi week correction back to support D-- OS at support and very sharp rally due to news E-- OB in the same news candle Multiweek correction back to support F-- OS and Div at support Multiweek rally to previous highs G-- OB H-- Div Price still rallied and made new highs Later a very sharp fall back to support I-- OS J-- Div at support Price rallied sharply to the high of point E K-- OB L-- Div At L we have similar condition as we had at E. These conditions may pull the price back to the high of E at around 350 to find some support. Some observations: # Div not always lead to an immediate fall. Once it is OB/OS conditions, one may have to look for div trades on lower timeframes like daily. # One should not force trades and let the price take its course of action and reveal hands (eg at H) # Price action at lower timeframes should be given equal importance. # Div after OB/OS conditions works great. # Sharp rallies which take old highs in just one or two weeks plus OB conditions means caution. Same is true for sharp falls. # Div trades look very simple in the hindsight but as per my experience they are not that easy to trade in the live market. I hope this will add to your knowledge. Regards JJSingh
NSE:SBIN
by Bravetotrade
4
Amber enterprises showing false breakout?Amber enterprises showed a breakout yesterday and many buyers entered here because of the breakout But do you know it's a false breakout? lines reference: dark blue-resistances cyan blue-supports yellow-both acting as support and resistance. Guys please first like and comment :) -------------------------------------------------------------------------------------------------------------------------------- Ok...Now I was telling that amber enterprises has shown a false breakout because: 1) the stock form Abandoned Baby bearish candlestick pattern which forms only on a false breakout and doesn't form on a true breakout. 2) the stock came in overbought zone. 3) Although the stock breaked all the resistances but the resistances are so strong that they are pulling the stock to the consolidation channel. 4) The stock also made a new resistance here after this false breakout. _____________________________________________________________________________________________________________________________ Alert for you guys :) please do like and comment as I give you profitable Ideas :)
NSE:AMBERShort
by Aniketyourtechnicalanalyser
2