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When not to trade the Markets using Price Action ?

Posted on July 25, 2018 02:48 pm

 
 

All stocks go in phases of Expansion and Contraction.This is Very Important for any trader, As period of choppiness is followed by periods of trends and vice versa. A simple thumb rule i use  in price action is to check if candles are overlapping or not. Too much over lap and narrow Daily range it means those phases should be avoided. You can see an example of Bank nifty EOD below.

The area marked in Rectangle Overlap more than 80% indicating choppy condition ahead , the Area marked in blue did not overlap. So you know which is good phase to trade and the area in Brown is moderate or neutral markets which can also be traded. If you do this exercise to the stocks in your watchlist you can increase your setup accuracy. Keep it simple.

 

The Good news is after Zero Zone or ultimate overlap you will get a fantastic breakout leading to next Blue Phase. Wait for the Kill.

 

for more articles on price action do click  http://www.technicaltrader615.com/price-action/technical-chart-analysis, Do follow my facebook page too.     

https://www.facebook.com/technicaltrader615/

Happy Learning and Trading !!!

Cheers !!!

For any queries call /watsapp 7373339777 or 8508777733

 

 

 

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ABOUT TECHNICALTRADER 615

Technical trader is born out of passion. Passion to learn, Trade and share about Technical analysis of the Stock Markets. We all know context is the important aspect of technical analysis. The Sustenance of a big move or a breakout of a particular stock depends on the context in which the breakout is happening. As a Traders coach we teach you how to develop context and trade the stock market. Especially the Nifty and the Bank Nifty.

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