Saturday, November 9, 2013

Price Action Trading--- NIFTY SUPPORTS BECOME RESISTANCE—Excellent Intraday Trade Opportunity


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These days I am emphasizing on Price Action Trading. I am having my chart totally clean without any indicators on it. And this is giving me excellent High Probable, High Reward Low Risk Trades .

Above Chart of Nifty Future on November 09  is Self  Explanatory. In first half till 12.00 PM Nifty Future was trading in a range and then it broken the range. And it came down and after that Nifty Future again Came to the level of 6198 which was the previous support now become resistance and that worked well for a NICE SHORT with very low risk and high Probability and given reward of more than 20 POINTS.

Why this Happens ?

  • First thing that all trades goes with the Traders Making decisions with their EMOTIONS.  So here at every POINT their emotions are forcing them to make Decisions.

 

  • Now when till 12.00 PM Nifty Fut was trading in a Range and its low till that time was 6197. So when Nifty Fut BROKEN that low after GRINDING in a RANGE for lot of time what happened is TRADERS those who EXPECTING Nifty FUT to go UP they have PLACED their STOPS below the range low and also NEW TRADERS also made SHORT here so prices went very FAST towards 6175 after BREAKING the 6197 due to this FORCE BY STOP hitting and NEW SHORTS.

 

  • But entering at direct Breakdown is always risky so I did not entered at breakdown. Then Price started going up and it reached around the levels of 6198 where there are Traders Like Me and also those who Missed the Chance to enter short entered short. Now this PREVIOUS SUPPORT OF 6197 NOW BECOME RESISTANCE. Now Prices Started going down and when they came below they low of 6175 , at this POINT the TRADERS who made LONG when Market Started going up from these levels their STOPS placed below the 6175 they hit and also STOP SHORT orders also triggered and they taken PRICES down very FAST to levels of 6165. This was NICE 30 POINTS Trade with low RISK.

 

DO SHARE YOUR OPINIONS.


For Further Reading,
Price Action Trading, Supports and Resistance, TraderAdda Special, Trading Education, Trading Systems and Setup, Trading Techniques and Tricks

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