What is IMBALANCE in the MARKET ? How to TRADE ?What is IMBALANCE in the MARKET ? How to TRADE ?
Imbalance also known as Price Inefficiency is a key factor in Stock market price action Trading.
Look for any candle which has a full body and look for the part of the candle that isn't overlapped by the previous and next candles' wicks. This signifies an imbalance in the market because there were few transactions going on between buyers and sellers.
How to Find?
In order to find imbalances, it consists of 3 candles. In a Bullish Scenario, It is where there is a gap between the top wick of the first candle & the bottom wick of the third candle do not meet. Wise versa for Bearish scenario.
How do you trade with imbalance?
Investors can protect themselves against the volatile price changes that can arise from imbalances by using limit orders when placing trades, rather than market orders. As each trading day draws to a close, imbalances of orders can arise as investors race to lock in shares near the closing price.
Untouched Imbalance level?
When price moves in one direction without filling the imbalance, mostly it tends to come back and fill the gap. Until then price wont go up/down much. Basically It will act as a magnet for the price. So Always find the imbalance areas which is a strong Demand and Supply zone for good trades and predict the market.
Support and Resistance
What makes a Resistance Potential OneResistance and support are faces of a same coin the concept is same , if price reverses its direction after getting closer to a particular level or zone we call it resistance or support level or zone.
When you start learning about it more you will find that it is the most basic approach to analyze a price action, then you mix it up with trend line which is again nothing but a tilted support and resistances, concept is same.
Trading such levels & zone require an approach where you can benefit maximum from the upcoming move and the trade you take should have the potential to give you a good risk to reward ratio.
If you see, resistance and support are everyday happenings , they occurs so much times that taking a bet on every setup will make our trading random ,so filtering those blurry , OK-ok, less potential setup is very very important .
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Here I am giving you some of my observation over filtering such setups.
First do not try to make support and resistance everywhere , try to avoid making inside a range , can only make such resistances and support if they form on a large time frame or over a long period. This will filter out your 40% setups.
Second Let the support and resistance test 3 or more touches , when price behaves in an ideal way more than three times the level or zone become very crucial and price can tend to give you a big and sharp rally (see the direction still can be any side as it is not always breakdown it can also be a big reversal).
Third See the overall trend and recent price pattern , better if the setup is in order to the overall trend, reversals should also be in sync with overall trend as in this USD/INR chart the overall trend is bullish & the pattern is a bullish flag which is again a bullish one.
Fourth Volume formation when price reaches to a support or resistance if a spike in volume is there then you can say a big players is also betting on those levels or zones in big quantity (note : they betting in which direction you can't guess like that).
You can take entry at breakout and make your stop loss at the support simple....
Nifty Bank | Support & ResistanceSupport and resistance, the elemental bedrock of markets, guide our journey through chaos. Understanding their significance is vital.
I am explaining how Nifty Bank behaved in previous days with reference to Support and resistance.
You can see how beautifully and powerfully it has worked.
what is The symmetrical triangle patternThe symmetrical triangle pattern is a technical analysis chart pattern that forms when the price of an asset is moving within a range, with the highs and lows converging towards each other.
it is characterized by two trend lines that converge toward each other, forming a triangle.
It is confirmed when the price breaks out of the triangle, either above the upper trend line (bullish) or below the lower trend line (bearish).
Traders often look for a price target that is equal to the height of the triangle at its widest point, projected in the direction of the breakout.
The symmetrical triangle pattern can be a reliable indicator of future price movement, but it should be used in conjunction with other technical analysis tools and market indicators.
one can support the work by simply following BACTIFY and sharing the same with their friends
all the best and happy trading
Learn Bullish technical analysis pattern called DOUBLE BOTTOM The double bottom pattern is a bullish reversal pattern that occurs after a downtrend.
It consists of two consecutive troughs of roughly equal price, with a peak in between.
The pattern is confirmed when the price breaks above the peak with higher-than-average trading volume.
Traders use the pattern to project a target price for the breakout.
Traders may enter long positions in anticipation of the breakout.
The pattern should be used with other indicators and analysis to confirm its validity.
lets understand support and resistance in detail support and resistance they play a truly crucial role in trading
If you want to trade like a pro, there's something you should know:
Support and resistance, they're the stars of the show!
this can be understood from the below:-
Support is like a floor, it holds prices up high,
Resistance is a ceiling, prices can't seem to fly.
When prices hit support, they tend to bounce back,
And when they reach resistance, they often lose track.
These levels are key, they're a trader's best friend,
They help you to enter, exit, and defend.
So pay attention to support and resistance, my friend,
They'll help you make profits and trade till the end!
volume confirmation along with breakouts are beautiful
How to know that a double top or bottom will failHello Everyone as you can see here we have made two lines at the top and two lines at the bottom of the same height and you can see how it worked very well and told you very early that where it could be down and have to be cautious but it doesn't mean that everytime you find something like this you should be cautious at there and ready to exit and take the profit. Hope you get something new to learn if than pls like and follow us thanks bye.
NIFTY IS AT CRUCIAL LEVEL, Support Become Resistance NowIt is important to check swing lows and swing highs for analysing prices for short term trading, this concept of price which tells us that the support becomes resistance after breakdown, can be understood by this chart analysis.
But why this happens ?
See we often use this concept in our daily trading the logic behind such pattern and price behaviour lies in the crowd psychology when anyone buy a stock he sees the recent swing low and thinks that what if I bought here I would be sitting in a profit of this and that, he may also put a stop loss below the swing low. This is the most common think a trader does. Because he thinks prices should not trade below this low.
Swing highs or lows are those points where either buyers exhausted (in case of swing high) or sellers ( in case of swing lows) , so such price zone deeply affect the crowd decision making when price again trade at those levels, either buyer start leading over sellers or sellers punch out the buyers , these are turning points. That is why we see a sharp breakout or a sharp reversal.
We can benefit from such behaviour as we know something is going to happen so
1) keep an alert by using TradingView Alert
2) As you get an alert see price action on those zones, trading on such crucial spot results in a good risk to reward situation.
Note : Prices are random and sideways most of the time, if you have a way to filter those times where prices probably not behave randomly than it gave an edge over your trading.
How to play potential level breakout (From my latest trade)Steps
1) Identify potential breakout zones , crucial supports , resistances ,trend line , Patters like (triangle , rectangle , consolidation )
TATA POWER
other examples
UJJIVAN
ADANIENT
BTCUSD
BANKNIFTY
2) Wait for breakout "do not enter just seeing the breakout " ,watch carefully the volumes , then wait for a price to retest the level.
Many times when the prices make a crucial level , big players tend to exhaust this opportunity and fools us by fake breakout you can see my UJJIVAN idea in the links below.
3) when in price retest and start moving up then enter above just high of recent up swing and keep sl at the low of latest down swing.
This three steps are most effective approach for playing out the breakouts.
Using the Moving Averages and RSI to optimize buying processIn this chart I have explained my rationale using Moving averages, relative strength and RSI to initiate a buy on this scrip.
I always use a weekly chart to check for overall trend and analysis and based on it will initiate a buy on a Daily chart.
Explanations are given on the chart. The idea is get the maximum conditions in our favour for a profitable trade. Hope it will be helpful.
Another important thing is to always define a stop loss if the trade does not go according to plan.
Action & Reaction move Analysis in simple way.Simplicity Is the Key to Success . The simpler we keep things, the more successful we will be. It's as simple as that. Therefore, Action & Reaction is very simple to understand and act. Let's move ahead.
Two types of movement in the market: Consider an uptrend and, bulls are in charge. The first major move in trend is the Actionary move . when finally pause to catch their breath, the bears take over and send the price lower. The lower is counter to the over uptrend and what we call a Reactionary move . Typically, the reactionary move can be weak(1/3) or deeper(2/3). Sometimes a reactionary move can sideway and, some people call it a pullback also which is part of a larger trend. when it could end up and new actionary move in the opposite direction. Trade and Trend is your friend, so we can say here take a position in direction of actionary move.
1 to 2 is an actionary move
2 to 3 is the reaction of 1 actionary move.
3 to 4 is the subsequent actionary move.
4 to 5 is a new reaction.
5 to 6 is unclear which has not still made a lower low. It could be bottoming out. No one really knows what will happen next. In this case, we will think about both sides. The first side, seems to be a new actionary move up and if 5 to 6 actionary move is exists, the price remains actionary for looking lower low.
What will be your trade action?
1. Up (long)
2. Down (short)
Type in the comment section.
TimeCycle Analysis is looking for the up move on weekly timeframe:
Educational Post Ascending Channel**** Educational Post:
ASCENDING CHANNEL
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.
The pattern’s opposite counterpart is the descending channel.
KEY TAKEAWAYS
1. An ascending channel is used in technical analysis to show an uptrend in a security’s price.
2. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively.
3. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals.
****Trading the Ascending Channel
1. Support and Resistance:
Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when the price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses.
2. Breakouts:
Traders could buy a stock when its price breaks above the upper channel line of an ascending channel.
3. Breakdowns:
Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern.
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.
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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.
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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.
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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.
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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.
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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.....
Market Crash:- Is it an opportunity? Hi Everyone!
In this analysis we'll look at some chart after we met Crash.
Whenever market crash it's an opportunity for us to buy a good share at discounted price. Just Switch to the higher time frame ( Monthly, Weekly ) and find out the major Support/Resistant. It'll try to test major Support/Resistant, Trendline , Channel.
ASHOKLEY :- The chart is self explanatory.
HDFCAMC :- Find support at IPO's high in 2020 Corona crash.
SBIN :- Major support @150
AXISBANK :- Create support at previous resistance.
JSWSTEEL :- Create support at previous major resistance.
VEDL :- No need to explain.
Q- Can we enter as soon as price touch the Support/Trendline/Channel?
Ans- No, Wait for Price Action or W pattern in Short time frame { D }
Disclaimer:- This is Not investment advice. It's just for learning purpose. Invest your capital at your own risk.
Please like, share & follow if you find this article helpful for you in any manner.
How to search for stocks at 200EMA?One of Trading Views' strongest feature is its screener. Probably the best some of us have gotten used to so far. This is a small tutorial /writeup to help you search for stocks probably sitting at support.
Remember, for certain stocks their area of value is 20EMA, while for some it’s 50EMA and for others it could also be 100EMA, so on and so forth. Basically, once you understand how this works, you can choose to tweak the values presented here to your liking.
Having said this, let's figure out how to search for stocks that are on or have fallen to 200EMA. You can always choose a different value according to your search needs. For this tutorial we will stick to finding stocks at 200EMA.
But before we move forward, let's get a basic understanding of what we are trying achieve. In a day/week/month/quarter a stock will always make a high and a low and the price will always fluctuate between this range or it will make a new day’s high or a new day’s low.
The example below is a visual representation of a very basic candle or price movement within a range. I am sure you all know this but I am trying to make this as simple as possible for everyone to follow. So, all you need to take away from this is, there is a high, there is a low, and there is a body that represents opening price and closing price. Some candles will not have a body but I do not want to dive into the details of candlesticks. Google is your best friend to know more on candlesticks!
What we are trying to do here is to restrict the search query from giving us stocks/scripts that are above 100EMA. Yes, you got it right. We are going to restrict the highs from going above the 100EMA and restrict the lows from going below the 200EMA.
Without wasting more time, here is how you do it.
Head over to Screeners and select ‘Stock Screener’
You should be on Trading Views default ‘Stock Screener’ page with a default set of filters. This screen displays stocks based on the filter you have selected. The Trading View screener always defaults back to the last used filter.
Now, let’s tweak TVs search filter. Click on ‘Filters’. This will open up the Screener settings menu.
In the search bar, type ‘High’. ‘High’ represents the highest value the stock reached in a single day. You should see 2 drop down options. For the first, choose ‘Below’ and for the second, choose ‘Exponential Moving Average (100)’
Go back to the search box and type ‘Low’. ‘Low' represents the lowest value the stock reached in a single day. You should again see 2 drop down options. For the first, choose, ‘Above’ and for the second, choose ‘Exponential Moving Average (200)’
Now, this part is important to get consistent search results. What happens with only the above search query is that you get a very convoluted or mixed search result where the EMAs get intertwined. Adding this section helps prevent the EMAs and overall search result from being all over the place.
Head back to the search box and type ‘Exponential’. What you need to edit is 100EMA. From the first drop-down choose ‘Above’ and for the second choose ‘Low’ or you could also choose ‘Exponential Moving Average 200’. This setting remains mostly constant even if you edit the above search parameters.
Close your ‘Filters’ settings menu and click the drop-down menu beside 'Filters' to ‘Save’ your newly created filter. Select ‘Save Screens As…’, give your new search filter a name and you should be done.
Viola! Your new search filter is ready to be used.
However, if your search result is huge (it should be), you can tweak it a little further to reduce the total number stocks returned by the filter. Here is what you need to do.
Head back to the filter menu and type 'Last'. ‘Last’ represents the closing price of the stock. From the first drop down option choose 'Between' and enter your desired range in the 2 boxes. Here you are defining the price range of stocks that are within the value of 100 and 800. So, TV will only display stocks that fall in between this range.
In addition to all this, you can limit your search to only one Exchange. Which is either the 'BSE' or the 'NSE' exchange instead of both.
To do this, type 'Exchange' in the filter search menu and choose either one.
Psst: Don't forget to save your filter each time you edit else TV will not save your edits!
Hope you found this helpful and I sincerely hope you find a ton of good stocks to invest in!
Happy Trading!
BREAKOUT vs FAKEOUTTrading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation.
Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader.
Now lets see about the important key points to consider to confirm such valid breakouts
TYPES
There are different types of breakouts including
1)Trend line breakouts (diagonal form of S&R) ,
2)Horizontal price breakouts,
3)Pattern breakouts (double top, double bottom & other)
4)All time highs/lows breakouts,
5)Fib level breakouts etc.,
The support and resistance lines that are drawn at potential breakout points "should be seen as area/zones instead of fixed lines" .
BREAKOUT :
A breakout is when the price of the stock breaches a support or resistance levels that has previously formed followed by a strong candle close.
FAKEOUT :
A false break or fakeout, as the name implies, is any move above a resistance or below a support followed by a reversal that fails to close above or below the broken level.
WHEN THE FALSE BREAKOUT HAPPENS :
A false breakout happens when there are no enough buyers or sellers to continue supporting the stock towards the breakout direction.
In the examples above,the upper false breakouts happened because there were no enough buyers to continue pushing the price higher & tends to reverse similarly viceversa for the lower false breakout.
VARIOUS SCENARIOS OF FALSE BREAKOUT
POINTS TO REMEMBER
1)False breakouts can be avoided by waiting for strong candle closure above or below the levels to confirm the breakout strength.
2)Avoid the breakouts with non-stop parabolic movement (without pullback or retest).
3)Instead of using a single line as support or resistance, it is better to have an area/zone that covers all shadows in previous touches.
4)To take entry, always wait for the zone to breach by the candle closing confirmation combined with price action.
Hope it was helpful to you,
Happy Learning & Profit making :)
Thanks & Regards
Divyaapugal
Role of Support Resistance in Breakout tradingWhat is Breakout Trading ?
A breakout is a potential trading opportunity that occurs when a share price moves above a resistance zone or moves below a support zone on increasing volume .
For trading breakouts one should be aware of support and resistance . It acts as the backbone of Price Action trading.
What is Support & Resistance ?
Support is a place where a stock price stop moving downwards. It is a horizontal area on a chart, where price experience buying pressure and tends to move up.
Resistance is a place where a stock price stop moving upwards. It is a horizontal area on a chart, where price experience selling pressure and tends to move down
Why are these support and resistance formed?
Support and resistance are formed only due to our own emotions at points around high supply or demand zone . For instance, if a price falls from high 100 to 50 then in and around that price (50) there will be lots of buyers ready to buy assuming it to be very cheap price and same goes for resistance where lot of traders would like to offload their positions considering that price to be too high for the stock and good time to book profit.
Why do we need Support and Resistance?
Support and Resistance often helps to set
1)Target,
2)Entry and
3)Stop loss.
Guidelines for Drawing Support and Resistance:
For the same chart if we ask 10 traders to draw support and resistance area, we will get 10 different result. So, what are the important things to consider ?
I always prefer drawing rectangular zone instead of drawing single line to make chart look clean and easy to understand the area of supply and demand .
*Always Use Higher Time frame to draw Support and resistance area.
* Draw a zone using rectangle which shows multiple touches. While, this zone act as great support and resistance area compare to few touches which was due to volatility .
* While drawing zone make sure to cover shadows in all previous touches
Things to know:
* The more times the S&R zones are tested in a short period of time, the weaker they become &
the greater the likelihood it will break.
Rules for Positional breakout :
1)Candle closing is mandatory to trade breakouts.
2)Wait for the retest, if the price closes too far from the breakout level.
3)There should not be HTF support/resistance near the breakout level.
Types of breakout Patterns :
1)Rising & Falling Trendline
2)Rising & Falling Channel
3)Rectangular Channel
4)Ascending , Descending & Symmetrical Triangle
5)Head & Shoulder
6)Support & Resistance Breakout
Hope it was helpful to you,
Happy Learning & Profit making :)
Thanks & Regards
Divyaapugal
Asian paints case study: using Elliott wave & price action.
Asian paints had corrected more than 16% in just a month .
After 101 days, the price is back to the strong support zone.
Price has made a kangaroo tail/hammer candlestick pattern on the support zone. 200EMA is also near to price.
Wave principle is also giving a similar explanation.
There are three confirmations to find the ending point of wave four.
1. Price can take 61.8% retracement of the 3rd wave at 2782 , which is also a monthly support level.
2. Wave 4 can end nearby to support area.
3. sub-wave C of wave four is 161.8% of wave A at 2845 .
If the price enters the parallel channel, we will get a candlestick pattern and support zone's demand pressure.
200 EMA is also supporting this statement, which is close to the price. Or we have to wait for the monthly support level where the price is getting support, but entry is not possible without any reversal signal.
If the price isn't giving any reversal signal, the price will fall continuously.
Violation: Wave 4 can never touch wave 1. (at 2692)
I will upload an intraday chart with entry and targets the Asian paints soon.
Real Time example - TRIPLE ZIGZAG (Bullish)Let's talk about each waves of Triple Zigzag:
Wave W (5-3-5) impulsive: ((a)) = ((b)) at 17709 which is close actual low 17613. Its a sharp zigzag.
Wave 1X corrective: Wave ((b)) 3-3-5, Running Correction which is little complex.
Wave Y (5-3-5) sharp: ((a)) = 0.786 ((b)) at 16824 which, is very near actual low as 16782
Our first question is, What is the Zigzag?
In chart, a, b and c is zigzag which very easy to understand by picture.
Its really easy to understand this wave counting if you read just below basic rules and Characteristics of Zigzags. The main question, What is going on in nifty? This Triple Zigzag is bullish pattern. Really market is follow this pattern? - Wait and Watch...
Characteristics of Zigzags:
— labeled a-b-c
— subdivide 5-3-5
— typically occur in wave 2 position
— ‘b’ wave does not approach ‘a’ wave origin
— ‘c’ wave ends beyond ‘a’ wave extreme
— belong to ‘sharp'
Rules:
- Wave A always subdivides into an impulse or leading diagonal.
-Wave A always subdivides into an impulse or leading diagonal.
- Wave B always subdivides into a zigzag, flat, triangle or combination.
- Wave C always subdivides into an impulse or diagonal triangle.
We can use channel for zigzag. The Wave C often ends upon reaching the extreme of the channel.
TRENDLINES & S/R ZONES WORKS VERY WELL (EDUCATIONAL)Hello Friends,
Trendlines are one of the best part of technical analysis, see how resistances turns into supports, and supports turns into resistances.
One can start with practicing with Trendlines...!
1) Trendline is the base for all the technical patterns. So pls start practicing drawing trendline charts and then slowly move to next patterns.
2) Practice only few patterns and master in it rather than trying to learn all the patterns and techniques.
3) I would like to mention the quote of Bruce Lee here.
"I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times".
4) Do more and more practice on charts, more time you spend on charts, more friendship they made with you, you'll be able to understand the language of charts, because chart says everything...!
5)Best learning comes out of practice you do everyday and then you apply it in real market.
6) Books knowledge will not be use full, if you don't practice it particularly in real market, because it involves lots of emotions.
7) Spend at least one hour per day in identifying chart patterns and preparing your own charts.
8) Track your charts, Understand how the price moves once the support or resistance is broken.
9) Understand which method gives you better success rate and focus on it more to improve further.
10) Believe me, Nobody can stop you.
some examples are shared below
nifty spot chart example
gold chart example
silver chart example
techm chart example
Shriram trans. arriving to its support zoneMany people ask me how to find a crucial support area now this it a perfect example of it , It is not an recommendation It is just an observation.
If you see here the zone of 1250 to 1260 is a crucial support zone which is tested for more than four times.
The overall trend of this stack looks sideways.
This is a perfect scene if you find and trade a reversal trade at support zone.
This is the way you should shortlist your stocks for playing reversals.
In earlier Idea of this stock (Check Out in comments) I want to play a major consolidation breakout but now it is better to find a reversal setup.
( Remember I am not telling you to buy this share , as no buying setup is there It is just for those people who want me to explain how I shortlist a stock and make a view on it before finding any buy sell setup)
MARKET PSYCHOLOGY & PRICE ACTION -WHEN OPEN=HIGH1] When Price is Open=high and also below pivot level, and rejected from previous day close .
2]Also broke Previous day low with strong candle - Indicates (bear are strong) bearish view and can go aggressively bear side.
3] When price gets rejected from previous day close , it stay bear side and less chance of reversal (week Bull) when it break Previous day low (strong bear)