Here’s a case study of Axis Bank stock. Below is a 5-minute chart of the same. Scanning past two trading sessions, we can note the presence of an upward three legged Zig – Zag pattern. After its completion price had been falling and in the second half of previous trading session, price plummeted and even closed slightly lower below its previous close.
Coming to today’s session, the open candle is a bearish candle which formed just at the support zone (marked by horizontal box) where day before yesterday’s close is in confluence. I also have marked down and up wicks that formed in the first hour of trading. All those wicks combined were an indication of fight between bulls and bears.
Ultimately, price fell down below the support zone and two up wicks indicated weakness of bulls. It was difficult for me to take up trade in that noise of bulls and bears. So, I drew a trade box for short trade case study. The trade details are as follows. Entry is @ 682.65, Stop is @ 685, and Target is set near the Supply zone. The trade plan had 1:1.8 Risk-Rewards ratio. The trade earned 4.5 points in the end.