Possible Trade Opportunities in BankNifty on 14-07-2023.Dear Friends,
The price action was again very good today as after two stop losses the third opportunity was PE which gave a very good target.
Today I have marked the Trade Opportunities Alphatcially so that we can discuss the result of the trades tomorrow but please do note that there is no chronological order. Trades can be taken as per the levels.
NOTE: I prefer trades in 5 mins time frame.
If a candle has broken a particular resistance or support, let that candle close above or below the resistance or support. Also, wait for the next candle to break the previous candle's high or low of the candle which broke support/ resistance. This way you can avoid traps and also fake breakouts. I personally see to it that my next candle is not touching the resistance or support line.
Also don't underestimate the power of EMA 20, the price always tends to return to 20 EMA. Hence if the price is very far from 20 EMA, it may come back to the EMA rather than going further away from EMA.
Do maintain a minimum 1:2 risk-reward ratio. If you have had 3 losses making trades back to back. Just shut the system and wait for opportunities the next day.
Hope the levels stand strong tomorrow.
Happy Trading!
