Hello Traders! Here we gonna learn how one can trade Nifty/Banknifty using pure price action and get better results
Assuming that one knows what is Support and Resistance & know about candlesticks
So traders, all you need is to draw the support/resistance levels on your chart, here I've draw S/R levels in Banknifty and
timeframe I'm using is 15 mins for Intraday trading.
After plotting the Support/Resistance levels once the market opens we'll observe the market trend and we'll trade as per
the trend. So here we can see on 15 mins time frame that #Banknifty was making Higher high and Higher low so
as per that we can say it's a short term uptrend and on the current day the market opens below the previous swing
high and candle formation open = high indicates selling pressure
So here after the 15 min 1st candle closes on the small time frame of 5 min we can see a candle rejection from S/R zone
here we can take entry, it's #Banknifty so as an option buyer we'll short market by buying a PUT of near Out of the Money
After we'll set out stop loss before the entry candle in 5 min time frame and lot size is according to risk management
then here comes a flip zone, a S/R zone which act as flip zone that market can reverse or continue, at here we'll trail our SL to
cost, and on the chart one can see the candle gave a small pullback from flip zone S/R level but pullback was weak and market
continued to fell from broken support zone
Later we can see how prices reacting from support/resistance levels and finally it reversed from support zone
Price action is beauty, one can draw support/resistance levels and take action as per the price movement, candlesticks and trend
play an import role
Assuming that one knows what is Support and Resistance & know about candlesticks
So traders, all you need is to draw the support/resistance levels on your chart, here I've draw S/R levels in Banknifty and
timeframe I'm using is 15 mins for Intraday trading.
After plotting the Support/Resistance levels once the market opens we'll observe the market trend and we'll trade as per
the trend. So here we can see on 15 mins time frame that #Banknifty was making Higher high and Higher low so
as per that we can say it's a short term uptrend and on the current day the market opens below the previous swing
high and candle formation open = high indicates selling pressure
So here after the 15 min 1st candle closes on the small time frame of 5 min we can see a candle rejection from S/R zone
here we can take entry, it's #Banknifty so as an option buyer we'll short market by buying a PUT of near Out of the Money
After we'll set out stop loss before the entry candle in 5 min time frame and lot size is according to risk management
then here comes a flip zone, a S/R zone which act as flip zone that market can reverse or continue, at here we'll trail our SL to
cost, and on the chart one can see the candle gave a small pullback from flip zone S/R level but pullback was weak and market
continued to fell from broken support zone
Later we can see how prices reacting from support/resistance levels and finally it reversed from support zone
Price action is beauty, one can draw support/resistance levels and take action as per the price movement, candlesticks and trend
play an import role
