WHEN PREDICTION IS DONE WITH CONVICTION THEN RESULT IS FRUITFUL!

Hi Traders,
1. On 31st of October 2020, I wrote in my weekly blog the rally you saw this week with clear conditions that even a layman can understand. See the words I quote as proof of this upside move in trade plan section point no.1 " In the current fig I marked one red line upside If this is taken out in the next session in both time frames then this downtrend will convert into the upside But always use Fridays low to stop loss even if the takeout condition gets activated upside." Here you can see I made a red line when market sentiments were quite bearish there was no clarity of upside trend I wrote the first condition taking about taken out the condition and see how fantastically that condition got activated and you saw a rally of 3000 points. Those who are positional traders enjoyed good profit this week. In every chart on record, all are manifested in such a way that trade becomes easy if have basic knowledge of the market. Understanding of taken out condition with marking make everything easy. Have you ever seen me giving plenty of lines in the chart only two lines are sufficient to analyze any market?

2. Now see how knowledge of candlestick pattern with perfection provides pinpoint information of price movement. I circled in green three candles one is Doji, the second is hanging man and the third is an inverted hammer. The cluster of this candle is a reliable pattern of a trend reversal. See how the price moved down showing by the black arrow. In this case, one should know where to book profit. That is a gap.setting previous fig for comparing my statements.
Trade Plan for Next week.

1. See a pink colour circle showing a hanging man pattern with harami cross which is not activated till yet but as soon as it gets activated by giving the close of next candle below hanging man candle and price fulfil taken out condition in both time frame of 15 min and 1 hour, then this uptrend will convert into a downtrend. But do not think this new trend will be free fall. It will full of volatile trades. Only negative news will increase its momentum otherwise range-bound trades. The rally you saw last week now price movement will not be like this. So you have to book your profit soon.

2. On the contrary if price takes out the green line in both time frames then do not think you will see a rally rather it will be a trap move. So the upside move will not be convincing at all. Please do not think I am sounding bearish. My sentiments change with price movement. I always see the market in a neutral way not biased any side. With the flow of price, I change my sentiments. That is why always work with stop loss.

3. For new readers writing how taken out condition applies in the analysis. Taken out condition works in the two-time frame combination for daily( 4 hr + 1 day) analysis. Similarly, work for lower time frames is also a two-time frame combination. For intraday trades 1 hr with 15 min. For taken out condition price has to complete in both time frames. Aggressive traders can take that side position in a lower time frame with the stop loss of breached candle low. In both the time frames given line is breached by a candle that candle high is to be breached by the next candle and close should be above the previously breached candle. This is how taken out condition is being implemented.

Yogesh Vats

Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.