You take a LONG trade at open
Price moved upside, & you made some profits
After some time, the price started to come down
Now you don't know whether it is a TEMPORARY PULLBACK or a COMPLETE REVERSAL
5 Effective Ways to Know about it!
(1/N)
Thread 🧵🧵
#trading #StockMarket
#1 Look at Open Action
Open action (9.15-9.45) plays a crucial role in the day.
The presence of strong buyers indicates it is just a pullback.
The absence of strong buyers indicates a high possibility of reversal!
(2/N)
#2 Look at the Last 2 Days' Price Action
The last 2-3 days' market sentiment plays a crucial role in the current day.
If it is positive, then there is a high possibility that the price is just showing a temporary pullback (and not a complete reversal).
(3/N)
#3 Look at the Price Action at the Top!
Usually, the price forms a "big Bearish Engulfing" or a "big pinbar" at the top before reversing.
The absence of such a candlestick pattern indicates it is just a pullback!
(4/N)
#4 Look at VWAP
On most trading days, VWAP acts as Support or Resistance.
If the price is taking support at VWAP, then it means a high possibility of temporary pullback (and not complete reversal)
(5/N)
#5 Look at Open Interest (OI)
OI is the number of open contracts in a particular security.
If the OI data is bullish till that point, then it is just a temporary pullback.
Read this article to know more about OI
profiletraders.in/post/the-power…
(6/N)
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stockmarketcourses.in/courses/Price-…
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