Price Action Story [24 - 12 - 2021]

Here's a beautiful price action story from Bhart Artl stock. Please refer the 5-minute chart of the same below. First of all please note in the chart that there is strong resistance area 682 area. Though price had pierced ‘682’ area once during day before yesterday session, price fell back due to weakness of bulls above that area. During yesterday's session price had found stiff resistance again. I have placed 3 downward facing arrow marks to show the strength of resistance zone.

Today, price opened exactly in the resistance area with a bearish candle. Current day pivot ‘p’ was also in conjunction with the resistance area. The 2nd and 3rd candles are Harami candles. That was a strong signal that if the low of open candle were to be taken off price could inch lower. But there were two immediate hurdles that altered Risk-Rewards ratio concerns of a trader. They were 200-MA and a strong support nearby. But the push from ‘682’ area was strong enough to push the price to 's1' pivot nicely. 's1' pivot acted as strong support for price today. Price bounced back to ‘682’ area again.

What about Nifty 50 index?

Nifty 50 opened with a strong bearish candle. Please refer the 5-minute chart of Nifty 50 index below. Once low of the second green candle was taken off I figured out that Nifty was going to reach ‘s1’. Surprisingly, Nifty hit ‘s1’ with a bang and pierced it. Nifty gave short opportunity just below ‘s1’. That’s when I drew a horizontal box near the confluence of pivots ‘s3’ and ‘-p’ and expected the broader index to further descend lower. Nifty in a clear fashion made its way to ‘s3’ pivot. Upon reaching ‘s3’, Nifty stalled for a while and as expected made 61.8 % of correction of morning fall by the end. Nifty closed 0.44% down for the day.

Strong Price Action [24 - 12 - 2021]

Here's an account of a strong price action that was seen today in Axis Bank today. Below is the 5-minute chart of the same scrip. Price opened with a huge bearish candle. The open candle also had up wick which indicated weak bulls. Within first 15 minute price had breached yesterday's confluence area marked in the chart below by a horizontal box.

A trader had to be swift in his entry actions. Price kept inching lower swiftly. I formed a plan to enter short at a small correction which I have marked in the chart with eyes on target area near 's3'. But I could not pull the trigger. I have hesitancy in entering such trades. I need to work on it. Price reached an earlier support zone near 663. It didn't reach 's3' pivot.

Price Action Documentation [24 - 12 - 2021]

Here's a beautiful price action story from Auropharma share. Please refer the 5-minute chart below. The price opened near PDH with a big bearish candle. The second candle indicated the attempt of bulls to take price higher. But Candle 1 marked in the chart failed bulls. There was pullback sell opportunity just below pivot 's1' which I have marked in the chart.

I identified this opportunity well just in time and couldn't execute the trade. I also had planned the target near the confluence shown in the chart formed by 's3', '-p', and 200-MA. Price indeed fell nicely towards the point. I was a bystander. Price offered second opportunity which I have marked in the chart. By this time I was lost in looser thoughts.

A Loss Trade [23 - 12 - 2021]

Here's an account of a loss trade. The scrip in consideration is Auropharma. Below is the 5-minute chart of the same for reference. Having suffered a loss in the morning I was in for taking another trade. This stock was open in one of the tabs. I was waiting for an opportunity.

Though price opened Gap up price filled the gap immediately. I zoomed in to 2-minute chart to find an impulsive structure fall from day high to earlier resistance area marked in the chart by horizontal box. I expected the price to retrace the fall by 0.618. Generally, price will retrace anywhere between 0.618 - 0.786.

I have marked the point where I presumed the retraction was complete. So I placed a short trade. There were lot of signals that made me uncomfortable while the trade was on. Though I felt price could go against my plan, I stuck to the plan. There were ample signals alerting me. My stop was taken off. Later price covered 78.6% retracement and started falling.

I must have waited for little more time. Impatience was another reason for the failure. Entry wasn't timed well. I didn't enter the limit price while putting on the trade.

What about Nifty 50 index?

Nifty 50 opened Gap up near 'r2' by about 70 points. A higher CPR relationship was in place. Below is the 5-minute chart of Nifty 50 index for reference. I have marked the CPR area for current session by a colored horizontal box. Nifty kissed 17106 levels twice from where heavy selling had come earlier. For most part of the day Nifty slithered around 'r2' pivot.