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.

Result:

I hope the above information is helpful.

Happy trading :)

Comments

Difference between BOS and CHOCH?

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

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 :)

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...

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