When underlying gives gap up above yesterday's range and sustains above that for one hour+ means market participants has accepted the new range and are willing to buy at higher price. So fresh buying and short covering are likely.
(1/n)
If price opens gap up out of PDR but fails to hold on to hourly low which means market participants haven't accepted new range yet.
So in that case it's likely to test PDH first if that also doesn't hold then PDC and even PDC doesn't hold price then likely to test PDL.
(2/n)
Similarly
When underlying gives gap down below yesterday's range and sustains below that for one hour+ means market participants has accepted the new range and are willing to sell at lower price. So fresh selling and long unwinding are likely.
(3/n)
If price opens gap down out of PDR but fails to hold on to hourly high which means market participants haven't accepted new range yet.
So in that case it's likely to test PDL first if that also doesn't hold then PDC and even PDC doesn't hold price then likely to test PDH.
(n/n)
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Outside followed by inside bar is one of the best pattern to trade.
What does outside bar means?
- Outside bar is when current candle high > previous candle high & current candle low < previous candle high
(1/n)
What does inside bar means?
- Inside bar is when current candle high < previous candle high & current candle low > previous candle low.
(2/n)
What to interpret from outside bar?
- When we get outside bar which means neither buyer nor seller are in control.
- When we get outside bar, we should wait for the follow through/confirmation in next candle.
Every year Lacs of people appear for MBBS exam but only 5% gets admission. Out of those 5% hardly 1% becomes expert in their field.
People still never feel that doing MBBS is risky.
Same for engineering or any field there is hardly 5% who achieves something good.
(1/n)
In any business there are thousands of start up businesses are happening but hardly 5-10% runs those businesses successfully.
Still people don't feel starting new business with their own investment is risky.
(2/n)
Trading is no more difference here as well success ratio to achieve something is 5-10% as other businesses.
But Pure Indian mindset still believes that trading is very risky business and it's just gambling. Hardly very few people has financial literacy in INDIA.