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Supply and Demand

What is Price Action ? Beginners Guide in Easy Steps Part -2In our previous discussion, we delved into the fundamental techniques of reading a price chart with key price action strategies. This time, we're set to expand our understanding even further. By the end of this article, you'll have a fresh perspective on analyzing charts and interpreting price movements, empowering you with deeper insights and more confident trading decisions. 1. Identify the direction of trend with the help of price action candlesticks a.)Strong Uptrend: Green candlesticks moving upwards continuously. Indicates strong buying pressure with no selling pressure. b.)Uptrend with Deep Retracement: Green candlesticks with some pullbacks. Sellers present, causing temporary price dips. c.)Indecisive Market: Alternating red and green candlesticks. No clear market direction, prices moving up and down without strong conviction. d.)Tight Range Before Breakout: Small red and green candlesticks within a tight range. Usually occurs before a significant breakout. e.)Weak Uptrend with Choppy Price Action: Alternating red and green candlesticks, choppy pattern. Indicates weak buying pressure and strong selling presence. f.)Healthy Uptrend: Green candlesticks with few red ones. Strong buying pressure with minimal selling, indicating a solid upward trend. 2. Importance of Wicks and the closing of candle Wick and a Doji Candle: Indicates early signs of buyers attempting to stop the price decline, If you observe closely there is a wick in previous candle also, on the break of high of the candle price hit trendline resistance and fallen again. Second Wick at the Same Zone: Sellers tried to push the price down again, but buyers stopped it, forming a bullish pin bar. First wick formed a demand zone but the second wick confirmed of buyers activity. After Some Fight, Buyers Win: Buyers managed to push the price up From the range, kicking out the sellers. More Lower Wicks: Indicates both buyers and sellers are active, but buyers are gradually winning, which is bullish. Lower Wick Shows Demand: After a downturn, the lower wick signals demand coming in. Inside Bar with Bigger Upper Wick: Shows bearish bias. The break of the low led to the continuation of the fall. NOTE: Wicks are an early indication of demand or supply presence, but the location of formation will be more important.It would help if you determined whether it's in an uptrend, downtrend, or range. 3. Multiple Candle Rejection A)Exhaustion Gap: At one point, the chart shows a gap up, where the opening price equaled the high of the day. This indicates an exhaustion gap, suggesting potential for a larger correction. Despite this, only a single bar correction occurred initially, showing resilience. B)Brutal Correction: A sharp, one-bar correction is seen, followed by buyers trying to push the prices back up within the same candle. This indicates a strong fight between buyers and sellers. C)Inside Bars and Tight Range: The presence of multiple inside bars with tight ranges and prominent lower wicks signals consolidation and market indecision. This is a period where neither buyers nor sellers dominate, often preceding a significant move. D)Break and Continuation: Eventually, the price breaks and closes above the range of the inside bars. This breakout triggers a continuation of the uptrend, evidenced by the subsequent series of green candles and higher prices. #Understanding Candlestick Wicks: Wicks/Tails: These are crucial as they indicate early signs of demand or supply. In this chart, the lower wicks suggest that buyers are stepping in at lower prices, even during pullbacks, showing underlying strength. 4.Importance of Close Of Candle If you wait for close of the Candle beyond support or resistance zone then it can help you take high-probability entries only and avoid fake breakouts. Fake breakout means when the price breaks the support or resistance area but it failed to sustain beyond that area and quickly comes inside the range. That's all for today's idea I hope you have gained good insights into how to read market direction with the help of candlesticks structure If you read market direction in consideration with the factors explained in Part 1 then the outcomes will be Great. If this idea helped you learn something new hit the boost button and share with your friends, Stay tuned new ideas in this series coming soon. Keep Learning, Happy Trading. NSE:NIFTY
NSE:NIFTYEducation
by SANJAYPATIDAR_
2
AUDJPY SHOWING A GOOD UP MOVE WITH 1:8 RISK REWARDAUDJPY SHOWING A GOOD UP MOVE WITH 1:8 RISK REWARD DUE TO THESE REASON A. its following a rectangle pattern that stocked the market which preventing the market to move any one direction now it trying to break the strong resistant lable B. after the break of this rectangle it will boost the market potential for break C. also its resisting from a strong neckline the neckline also got weeker ald the price is ready to break in the outer region all of these reason are indicating the same thing its ready for breakout BREAKOUT trading are follws good risk reward please dont use more than one percentage of your capitalfollow risk reward and tradeing rules that will help you to to become a bettertrader thank you
Long
by tradergyan01
Nifty Intraday Analysis for 25th October 2024NSE:NIFTY Index closed near 24400 level and Maximum Call and Put Writing near CMP as below in current weekly contract: Call Writing 25000 Strike – 77.75 Lakh 24500 Strike – 59.27 Lakh 24400 Strike – 36.05 Lakh Put Writing 24500 Strike – 59.72 Lakh 24000 Strike – 54.39 Lakh 24400 Strike – 48.85 Lakh Index has resistance near 24550 – 23650 range and if index crosses and sustains above this level then may reach near 24850 - 25950 range. Index has immediate support near 24350 – 24300 range and if this support is broken then index may tank near 24150 – 24050 range.
NSE:NIFTY
by RKMAURYA
Banknifty Intraday Analysis for 25th October 2024NSE:BANKNIFTY Index closed near 51530 level and Maximum Call and Put Writing near CMP as below in current weekly contract: Call Writing 52500 Strike – 24.40 Lakh 52500 Strike – 20.27 Lakh 51500 Strike – 14.12 Lakh Put Writing 51000 Strike – 20.25 Lakh 51500 Strike – 18.29 Lakh 50500 Strike – 11.30 Lakh Index has resistance near 51900 – 52100 range and if index crosses and sustains above this level then may reach near 52600 – 52700 range. Index has immediate support near 51000 - 50900 range and if this support is broken then index may tank near 50500 - 50400 range.
NSE:BANKNIFTY
by RKMAURYA
Finnifty Intraday Analysis for 25th October 2024NSE:CNXFINANCE Index closed near 23855 level and Maximum Call and Put Writing near CMP as below in current weekly contract: Call Writing 24100 Strike – 5.23 Lakh 24000 Strike – 4.26 Lakh 23900 Strike – 4.17 Lakh Put Writing 23700 Strike – 3.79 Lakh 23800 Strike – 3.32 Lakh 23600 Strike – 3.21 Lakh Index has resistance near 23950 - 24050 range and if index crosses and sustains above this level then may reach near 24250 - 24300 range. Index has immediate support near 23600 – 23500 range and if this support is broken then index may tank near 24200 – 24100 range.
NSE:CNXFINANCE
by RKMAURYA
Midnifty Intraday Analysis for 25th October 2024NSE:NIFTY_MID_SELECT Index closed near 12570 level and Maximum Call and Put Writing near CMP as below in current weekly contract: Call Writing 12700 Strike – 11.18 Lakh 12800 Strike – 10.57 Lakh 12600 Strike – 10.14 Lakh Put Writing 12400 Strike – 9.91 Lakh 12500 Strike – 9.41 Lakh 12300 Strike – 7.30 Lakh Index has immediate resistance near 12700 - 12750 range and if index crosses and sustains above this level then may reach 12900 – 13000 range. Index has immediate support near 12400 – 12300 range and if this support is broken then index may tank near 12150 – 12100 range.
NSE:NIFTY_MID_SELECT
by RKMAURYA
BankNifty levels - Oct 28, 2024Utilizing the support and resistance levels of BankNifty, along with the 5-minute timeframe candlesticks and VWAP, can enhance the precision of trade entries and exits on or near these levels. It is crucial to recognize that these levels are not static, and they undergo alterations as market dynamics evolve. The dashed lines on the chart indicate the reaction levels, serving as additional points of significance. Furthermore, take note of the response at the levels of the High, Low, and Close values from the day prior. We trust that this information proves valuable to you. * If you found the idea appealing, kindly tap the Boost icon located below the chart. We encourage you to share your thoughts and comments regarding it. Wishing you successful trading endeavors!
NSE:BANKNIFTY
by sacxe
Nifty levels - Oct 28, 2024Nifty support and resistance levels are valuable tools for making informed trading decisions, specifically when combined with the analysis of 5-minute timeframe candlesticks and VWAP. By closely monitoring these levels and observing the price movements within this timeframe, traders can enhance the accuracy of their entry and exit points. It is important to bear in mind that support and resistance levels are not fixed, and they can change over time as market conditions evolve. The dashed lines on the chart indicate the reaction levels, serving as additional points of significance to consider. Furthermore, take note of the response at the levels of the High, Low, and Close values from the day prior. We hope you find this information beneficial in your trading endeavors. * If you found the idea appealing, kindly tap the Boost icon located below the chart. We encourage you to share your thoughts and comments regarding it. Wishing you success in your trading activities!
NSE:NIFTY
by sacxe
BankNifty Intraday Support & Resistance Levels for 25.10.2024On Thursday, BankNifty opened on a positive note, hit a low of 51,201.85 and climbed to a high of 51,781.55 before closing at 51,531.15, gaining 292 points from the previous close. The Weekly Trend (50 SMA) remains positive, while the Daily Trend (50 SMA) is sideways. BankNifty Demand/Support Zones: Near Demand/Support Zone (Daily): 49,654.65 - 49,959.25 Far support: 49,282.65 (61.8% FIBO Level) Far Demand/Support Zone (Daily): 44,633.85 - 45,750.40 BankNifty Supply/Resistance Zones: Far Supply/Resistance Zone (5m): 52,143.55 - 52,257.30 Near Supply/Resistance Zone (Daily): 51,855.15 - 52,577.50 Far Supply/Resistance Zone (Daily): 52,817.80 - 53,235.25 Far Supply/Resistance Zone (75m): 53,763.20 - 53,945.10 Far Supply/Resistance Zone (75m): 54,152.50 - 54,338.70
NSE:BANKNIFTY
by PriteshPal