This simple technique will help you avoid losses due to wrong side trading:
In a downtrend, avoid longs as long as price closes below two day high.
In an uptrend, avoid shorts as long as price closes above two day low.
Earliest and strongest indicator of trend reversal is closing beyond 2 day high and 2 day low
Pro tip: If Nifty makes more than 2X ATR candle on any day, then mark 50% of the range of the candle for next few days.
This level will act as support/resistance as long as Nifty is inside the big candle range
If I have to use one single method to predict intraday trend, it would be tracking previous day POC and current day POC.
Market is > Previous POC+current day POC = Higher chances of bullish trend
Market is < Previous POC+current day POC = higher chances of bearish trend.
Market is between current day POC and previous day POC = Range bound markets.
Do not trade Nifty without knowing this!
A retail trader would be using multiple indicators like RSI, Macd, price patterns etc.
But did you know there is another tool that will give you X-ray vision into market movements?
(1/10)
Simple but powerful way to identify strong stocks for 5-15 days timeframe:
Universe: Nifty 500
Daily ADX > 30
Daily close > Previous day close
Daily close > Upper level bollinger bands
Save this tweet and re-tweet for maximum traders benefit.
https://t.co/A3zk7YbwIv
(FOMO Entry vs Planned Entry)
Planned entry = target RR 1:3
Expected gain = ₹9,000 on ₹3,000 risk
FOMO entry = late entry means RR becomes 1:1
Expected gain = ₹3,000
One emotional click reduces your potential profit by 66% instantly.
FOMO costs more than losses.
#FOMO #TradingLogic
No trainer teaches this in technical analysis, but you need to know this👇
Charts are fun, drawing lines for analysis is cool.
But instead of looking for some pattern or waves setups, you need to understand why does price move.
Market orders getting filled by limit orders in the system is what moves price mainly.
There are two kinds of orders - Market and limit orders.
Limit orders (resting orders) are set in the system. When orders at market price is entered by institutions, price will move as required until the entire market order is filled.
Bigger the market order, bigger the move.
If aggressive buying (market orders) keeps going above available asks (offers), price will keep going up.
If aggressive selling (market orders) keeps going above available bids, price will keep crashing.
Why are market orders important? Market orders show intent of a player. They are willing to transact at a higher spread. They are willing to pay higher to buy/sell on an urgent basis.
This is what moves price, nothing else.
Learn it, re-tweet it so that others benefit.
If you read the tweets I post, you will get a lot of learning and benefit. But sadly many people do not read and support.
See below tweet. Same thing happened today. If you read this tweet and followed, you could have taken advantage of today's move.
Today in the morning I told buying volumes are coming in and market rallied. Many people asked me how did I decode this?
Read further to understand.
(1/n)
Do not blindly chase 52 week high breakout stocks.
Check when did that stock make a 52 week high earlier.
It should be atleast 8-12 weeks before. This will give it enough space to make a good base.
Now plot volume profile on this swing. POC will show where big players are accumulating.
Use it as support zone to enter at pullback or keep SL.