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Up trend rally correction.

 10. Price Action Trading - Up Trend Rally Correction. 


  • As we all know, in order to sustain the up trend or down trend in stock market, it has to take a correction, then it will continue the up trend rally or down trend rally.
  • Here we will discuss few things, which we will able to understand the market sentiments and momentum.
Step 1: In order to analysis the market structure, we need to take a overview of the past days performance in the market. As market is overall up trend, we can decide, it is in up trend market.


Step 2: By doing the previous day analysis, we can see that market is struggling to make higher high and break the recent high price of the market. So, we can calculate the previous day's price by price range and make it half.


Step 3: In order to continue the trend, market has to go take a correction till half of the previous move. Once it is takes the correction, then it will continue the up trend rally. 


Step 4: Mark the support level and patiently wait for the market to give that price, once it reaches the support level as per our analysis, then we can buy the bank nifty and set the target till previous day's high.

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Result: 




I hope the above information is helpful.

Happy trading :)

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