Here's a 5-minute chart of Bharti Artl Ltd. stock that has good lessons for all traders. Please refer the chart below. Price opened with a bearish candle and within 15 minutes into trading price stalled near a resistance zone from earlier session marked by the horizontal box little above pivot 'p'.
Price started to bounce of this support and a huge bullish candle took of previous day high. Now traders look to enter buy near midpoint of such strong bullish candles. The big lesson is that such entries must be made only with multiple technical confirmations. In this case, succeeding strong bearish candle washed off all bulls from the scenario.
After that strong bearish candle a 3-legged sluggish ascent came and stalled near PDH. It was a pullback short entry. RSI was taking resistance near ceiling of bearish region. Deciding stop was difficult in this case.
I have drawn a slightly upward rising trend line which
connects the bottoms and tops of candles. Trend lines help us in catching entry
points. One has to use them along with other technical confirmations.