Advance Price Action Trading with Demand Supply & More

[AlphaT]

Update on maruti, after giving a 3:1 RR it is approaching an important DZ

Did you long Maruti at the DZ ? Giving almost 2RR as of now, I would book some profits if I were long.

 

[AlphaT]

Don't short now! Long only on confirmation. (Only for learning/paper trading)

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@preethi21 This is why you should not short at Demand zones!

 

[sabhlok_r]

Did you long Maruti at the DZ ? Giving almost 2RR as of now, I would book some profits if I were long.

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Yes, haven't booked the profit though, aiming for 7350 zone.

 

[AlphaT]

So how should one play out such a scenario? I mean what is the best way to capture this potential up move?

For a ERC to form allow think kind of PA to appear... this might take some time.

 

[sabhlok_r]

For a ERC to form allow think kind of PA to appear... this might take some time.

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Exactly,this will take some time. However in smaller time frame there is a potential up move as rightly pointed out by you in the chart (the blue pencil line moving up initially). What would be the best way to capture that?

 

[AlphaT]

Exactly,this will take some time. However in smaller time frame there is a potential up move as rightly pointed out by you in the chart (the blue pencil line moving up initially). What would be the best way to capture that?

In LTFs you can also look for good ERC zone formation basis the life time high as an engulfed barrier. I don't recommend breakout trades at life time highs, since they are often manipulated.

 

[sabhlok_r]

In LTFs you can also look for good ERC zone formation basis the life time high as an engulfed barrier. I don't recommend breakout trades at life time highs, since they are often manipulated.

Thanks.

 

[sabhlok_r]

Bajaj Finance update..

 

[AlphaT]

Yes, haven't booked the profit though, aiming for 7350 zone.

This is why I said I would book some profits a while ago... self explanatory now that I have covered all these concepts. This does'nt mean that price will turn immediately but enough PA to warrant some profits to be taken off the table. Personally in such cases, I take off 50% positions to make the trade risk free and ride any further move up.

 

[sabhlok_r]

This is why I said I would book some profits a while ago... self explanatory now that I have covered all these concepts. This does'nt mean that price will turn immediately but enough PA to warrant some profits to be taken off the table. Personally in such cases, I take off 50% positions to make the trade risk free and ride any further move up.

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Excellent. Profit booking must also include observing LTF just as it is essential for entry.