Markets are showing its True Character to Covid Traders, who believed all Sell Off will have Sharp Bounce & accumulating when its oversold will give great returns, but what they see is a Painful period of slow moves with odd moves here & there. Yesterday clearly HDFC Twins along with Some IT big fellows was used to Keep the Index high, but the pain underneath the Market in Midcaps & Smallcaps was painful. Now will be the time you will see Index doing something & your Portfolio stocks will be starting to trade in different planet altogether. Also, any stocks which has had Parabola moves, except them to correct big in next 6 months. In 2007-08 we had Lehmann crisis, but this time Crash is happening in expectations of we might see similar because of Central Bankers Rate Hikes & Bond Yield Spikes. So imagine when the actual plays our, that's when we will see real bottom getting formed. Now considering over sold levels, we might see some bounce, but still we are not out of woods. We might see bigger pain this year, before we see some consolidation & before we decide to inch up further. Imagine if I'm a FII & been on selling spree, will I look to come & buy at the levels I sold or will make the market crash & enter... so all these theories of Domestic Investors will be able to hold this Market higher is a myth & this Market in next 1 year, will send lot of Newbie traders & Investors back to work. For the day get ready to play again in Sideways, but any fall will give me 1 round of Buying Opportunity. Yesterday's low will be key for this series. Happy Trading 👍
A two-legged pullback to the 20-period exponential moving average is a 😳 high probability trade entry set up inside a strong uptrend for buying a dip in price action. What??? It can also be a short selling opportunity on a rally back to the 20-EMA during a downtrend in price action. Any candle that goes higher than the previous candle begins a new leg up in price. Makes sense? Any candle that goes lower than the previous candle begins a new leg down in price. Trading rules for the two-legged pullback to the 20-EMA Dip buy signal · Strong uptrend · Two-legged pullback down to the 20-EMA · Enter at the close of the candle that bounced back from the 20-EMA Easy, right? And what about the short signal? Short sell setup signal · Strong downtrend · ...
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