I log my mid-day thoughts here. The Axis Bank stock opened Gap up near daily pivot 'r1'. The opening candle is a weak High-Wave candle. The price fell down to center pivot level 'p' and before going higher. Below is the 5-minute chart of Axis Bank for reference.
A Hammer and a following confirmation candle formed near daily pivot ‘p’. As the price inched higher up, it successfully pierced the hurdle of weekly pivot 'P' on its path and took support of the same at 10:40 A.M. The target is set near daily pivot 'r2' with risk-rewards ratio of 1:2.8.
For the past 4-5 sessions price is correcting forming Zig-Zag pattern. There was always a possibility for this pattern to morph into triangle. As always there is risk in every trade.
In this case, there were strong confirmations such as price taking support at a weekly pivot 'P', price moving above 200-MA.
The trade details are as follows. Entry is @ 741.6, Stop is @ 738.6, and target is @ 750. All this I am writing in the hindsight. At the point of taking the trade I grew extra cautious. My mind said, "Wait for more confirmations. This pattern may morph into Triangle."
Needless to say I had fallen prey to mind. The price did
move up as per the trade. Today onward I will keep track of all the trades that I
don’t take up courageously. That will give me statistics that I can depend upon whenever I am scared to take good trades because of mind's noise.
Lessons:
I need to have one-pointed focus during trading hours. I must see the charts very diligently and pull out all the signals [hidden and non-hidden] that the market is offering at that point. Being in the present is most important during trading hours. There is no point in making case studies every day.
What about Nifty 50?
Nifty 50 opened Gap up of around 60 points with Shooting Star candle which hung itself to the daily pivot 'r2'. Incidentally, this daily pivot 'r2' is also in confluence with weekly pivot 'R2'.
Till 1:30 P.M. Nifty inched lower slowly towards the daily pivot 'r1' from where it started rising for the rest of the day. Nifty 50 closed 0.73% higher for the day. As of now, Nifty has made the 15650 levels as support for its upper journey.