Fibonacci Trick

4. Price Action Trading - Fibonacci Trick.

If market is in a trend, then we can draw Fibonacci Retracement of recent high and low of the market price.
We can get three major levels using the Fib tool which are 0.5, 0.6, 0.38.
We can check whether price is respecting the Fibonacci levels or not. If it respects and trading above 0.5 level, then we can go for long positions.

If market opens above the 0.5 level and sustains above it then, we can take a long position.

As we can see in the below image that the price is breaking the recent trendline and taking a re-test for up move.

If it is breaking the trend line and taking re-test then we can go long as market is trading above 0.5 level and very near to demand zone.

Hope the above information is helpful and happy trading :)

Comments

Difference between BOS and CHOCH?

BoS = Break out Structure. CHoCH= CHange of CHaracter.

Symmetric triangle pattern breakout.

6. Price Action Strategy - Short term counter trade and symmetric triangle pattern. We all know that if the market makes a symmetric triangle pattern and gives a breakout, then it will take a re test to make higher high. All we know is this, but the fact is even if it gives a breakout at triangle pattern, we need to check if there is any major and strong resistance levels nearby. We will check this example of SBIN and find out the real truth of the market. In the above image, we can see the SBIN is given a breakout of the symmetrical triangle pattern and took the retest. Every retailer will wait for the re rest to enter in a low price. As we can see in the above image, the market is at major resistance levels, so it may not go up ward and it may surely hit the stoploss of the many retail traders. As we are trading in SBIN, we can check Bank nifty for double confirmation whether the stock will go down or not. Main two confirmations: SBIN is facing major resistance levels, Bank Nifty

Liquidity Models

🔹 Liquidity is like fuel to move the market in a specific price zone. 🔹 We can find liquidity in zones where a lot of people set their stop losses and buy/sell stops. 🔹 The market makers will manipulate the price to break these obvious zones and take the liquidity. 🔹 These are the most common liquidity patterns.

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