One of my followers asked this Query:
A thread
1/n
Query: Hi bro. today taken this trade but SL hit. please share your view
My Response: First of all, Congratulations for trying stuff out. You will get a lot better in next 6 months.
2/n
I encourage everyone to practice this way by taking trades and then analysing what mistakes you did/things which could have been better
1. When you see gaps in the chart, they also act as Support/Resistance. Why? Because gaps mostly fill and then reverse (Read about Gaps)
3/n
Hence there was resistance around 374, so not a good place to long
2. You can long at 2 places,
a. At previous lows, where price takes Support
b. On Breakout of previous Highs with Volume and strong candles.
4/n
Here when you went Long, it did break day's high But it was not a big established resistance. Resistance was at 374.
Now when I would go long if I was following this stock?
1. If price came back again to 370 after 9:30, formed a tail and Strong Bullish candles
n/n
2. Price broke 374 with very high volumes and very strong candles. Why "Very"? Because price would be already 1.5% up by then and to go even higher, it will need "Very" high Volumes and strong candles
End of thread.
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