I log my thoughts for this trading session here. Basically, I find myself really stub-born and unchanging in holding on to a trade plan even when the very reason for such a plan is violated. Below is the 5-minute chart of Axis Bank for reference. Price opened with a red candle which took support at 748 zone marked by horizontal box and price started rising. It found resistance near 758 zone. The weekly pivot [not seen in the chart] is also in confluence with the Resistance zone of 758 levels from earlier date. Price weakened thereafter for the rest of the day.
But, I was looking for buy trade signals scanning the candles with down wicks which are marked by black support line. Also if the lower wicks of two candles are breached where all the stops of novices will be taken off by professionals then strong sell trade is activated. In the above case, price indeed took off those down wicks. With the confirmation bearish candle one could sell at 748.5. Price started fast falling. This level is also initial balance low for the day.
Since my bullish plans failed, I really wasn't ready to take the sell trade. I also realized that the price broke below the Tr. Line little later which I hadn't drawn when the breach occurred.
The interesting thing was that the price did give an opportunity to sell at 748.5 levels later again. There was a NR in RSI. But Risk-Rewards ratio calculation was challenging. A trader had to have tight stop in this case solely relying on confirmations. This is where gut feeling comes into play.
What about Nifty 50?
Nifty 50 took off from where it left yesterday. After an hour into the market, Nifty found stiff resistance near daily pivot 'r1' and started inching lower and lower in a zig-zag formation. Please refer the 5-minute chart below.
At 1:50 P.M., Nifty made a low for the day near 15630 levels where a confluence of previous and current day daily pivot is in place. This confluence is also near yesterday's low. The confluence is marked by a yellow horizontal bar. Nifty closed -0.13% lower for the day.
I also have marked two trade opportunities in the chart. The beauty of these trade opportunities is very interesting. Just before the second opportunity occurred price reached to the entry point of the first trade opportunity. That shows, all those who missed the first opportunity desired to short again if all confirmations were in place. They had confirmations in place few minutes later.