This method of trading has been pioneered by Stan Weinstein in his book "Secrets for profiting in bull and bear markets"
for entry and sl : s3.tradingview.com
for exit , trail the trending HH-HL structure on hourly or daily timeframe
Why i think an upside breakout is much more likely, and a BO above 35900 can lead to new ATH in banknifty
(detailed analysis posted on chart)
Bank nifty is also forming a Volatility contraction pattern, each time sellers have failed to take prices lower
Entry - Above 177
SL - Below 170
this is an example of power play structure as taught by Mark Minervini, where he waits for small consolidation in a very strong trending stock and then enters on breakout
Price Volume Analysis
- Selling volumes have continuously declined each time between 35500 and 35000 levels
- bearish candle range is getting narrow
- momentum on downside is decreasing as supply is slowly getting absorbed
-volatility is also contracting as anchor vwap bands from top and bottom region are converging
-breakout above 35500...
Price volume analysis
- compared to range and volume of candles formed at 1 and 2, point 3 is where the first time volumes came on downside with a wide range
- candle 4 is not entirely bullish, given the volumes, range should be wider, this suggests selling has occurred
- upmove that happened in 5 is on lower volumes and narrow range
Price volume analysis
1) Strong upmove on high volumes
2) low volumes during pullback
3) strong selling was evident in this region, with wide range candles and higher volumes
4) again wide range bearish candles, but volumes were slightly lower
5) further reduction in selling pressure evident by reduced volumes on downside
6) range and volume of red...
Volatility contraction pattern :
- Progressively weakening sellers in a strong trending stock
- first time, sellers managed to bring price down almost 20% from swing high to swing low
- then it became 12% and 8%
- range of bearish momentum candles that drove down prices has reduced
- volumes have been higher in the last 2 bearish candles, and...
NIfty futures VSA analysis :
- candles 1, 3 and 5 are bearish candles with higher
- everytime a bearish candle formed, it was
countered by a bullish engulfing candle within
- when 5 formed, response from buyers was very
weak, small narrow range candles with very
low volumes, this gives the opportunity for
aggressive sellers to...