Here's an account of a loss trade that occurred in Bharti Artl scrip this afternoon. Please refer the 5-minute chart below. I have marked the open candle. Just recalling a bit of yesterday's price action, in the last one and half hour, price rocketed 20 points. It looked impulsive. I expected correction to set in.
The open candle has a huge up wick which indicated weak bulls. Further price kept falling. In the hindsight I see that the 4th candle gave a pullback short opportunity near pivot 'p' and 200 MA conjunctions. Price kept falling and in the above case, price corrected 0.786%.
After the morning fall, price started taking support near 718 levels. I have drawn a horizontal box on the chart to show that. I waited for a buy opportunity. I have marked three up arrows that show candles with down wick. Bears were unable to take price below that zone. So I entered a buy trade. RSI too was meandering around the floor of bullish region. But my stop was hit.
Why did the trade fail?
Though bears were weak at this support zone, bulls weren't strong enough to take price higher bouncing off that level. The 3rd green up arrow (3rd attempt) completely nullifies the 2nd attempt by bulls. This nullification doesn't come. Instead a 3-legged pullback at a point little higher will occur. I must have seen this. I misjudged the 3rd attempt in this case.
What about Nifty 50?
Nifty 50 index opened with a nice bullish candle. It was small Gap up as well. I have marked a supply zone lying higher in conjunction with pivot 'R1'. I expected Nifty to move higher. In fact I waited for a pullback setup. Within 30 minutes into trading, Nifty breached the low of Open. All bullish expectations were nullified. Please refer the 5-minute chart below.
Nifty 50 gave pullback short entry near the previous day High. I have drawn a dashed blue line. For the rest of day, Nifty inched lower continuously. The broader index closed -1.8% for the day.