Thread by @Swapniltrader

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.