Today we saw amazing recovery from the bottom level. And it closed in green.
But on daily time frame it still remains below 100DMA which is placed at 1009 level range. It will only safe to get new buy trade once 1010 level breakout.
Please refer below chart on daily time frame.
----------------------------------------------------------------------- Below is simple trade setup Safe buy trade breakout of 1010 level and safe short trade below 995 level.
If it open gap up above 1010 level and try to get support from 1010 level then it will be entry for buy trade. But 15min candle should be required to take judgement. But after gap up opening it breaks the 1010 level down then it will be short trade entry.
If it open minor gap down or flat in range of 997-1000 then better to wait to level break on either of the side. Also if it goes up and take resistance from 1010 level then it will be short trade entry.
Hats off to you from my side. I have learnt how to take positional trades using 20 and 200 ma. thanks a lot. But price action is revolving in my head to use it without indicators for intraday.
Like how you are doing. no problem in one day I can't learn but I will learn it definitey one day. With the help of people like you.
thanks again,
if it breaks todays high tomorrow it will give buy oppurtunity. sell according to fib you have calculated I think but I dont know how to use it. my observations from past experience include this previous day low or high it will be good> I think I am right If I am wrong correct me please...
Hi Thank you for your wonderful comment. It keeps people like us motivated to do more and share more knowledge.
You will surely get hands on about price action as you watch charts and be in the market even with paper trading. Once you learn and gain experience then it will be easy.
I am only using MACD and RSI indicator but mainly trading on levels with 15min and 5min charts. Also using 21,50,100 and 200DMA to check at different time frame in live market.
Your observation about previous day low or high break will work for sure but need to check other aspect to be in safe trade, such aspect is as if there is major resistance above previous day's high then it will be the case that it will trade above previous day's high but above it will face resistance and there might be a fall.
As a beginner trader always trade in the safe trade level. And use both the time frame 15min and 5min to check how price action are working and if it is giving confirmation on breakout or not.
vardhan488286123
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@Trading_hawk, Thanks for your valuable replies. Yes as you said I was also observing resistance with the help of support and resistance dynamic indicator.
thanks again.