A = As indicated from previous day's price action and volume analysis, the uptrend was lacking momentum, and with respect to that today price opened with a gap down. But bulls strongly defended the open. Opening bar was a strong bullish bar closing at its top on above average volume. And effort to rise.
B = The next two bars from A started showing price-volume anomaly, and there is a hanging man near B on above average volume. Demand dries up, and a decline started
C = Price kept declining on below average volume (Lack of selling interest) and at C, a bullish hammer formed on strong volume near previous demand zone. A failure to break below opening support established the trading range for the day.
C to D = Price rallied on below average volume. No fresh buying from smart money, and slowly price became closed to PDH (supply zone). An early weakness was seen at D.
But the effort did not produce desired result, a violation of 3rd law, and after some hours of consolidation price went up again at E to test the supply.
I attempted a SHORT here by mistake. I jumped ahead at the first sight of weakness rather than waiting for its validation. This trade did not reverse quickly, and went through a hour long consolidation. By that time I had realized my mistake, But I held on to the trade out of greed with a tightened SL. (Thinking since price was not showing any bullish strength, lets hold it, as it might fall next).
SHORT at 25633, Initial SL = 25666, Exit at = 25652, Loss = 19 Points
In backtesting also I found myself committing the same mistake twice in a similar situation. That is jumping ahead to SHORT while price was approaching the supply zone. After correcting myself twice there I did the same mistake in live today.. Need a better control on self. Pretty upset with myself for the same.
E = Two topping volume was seen prior to E, Then an effort to rise and failed. This is also followed by a test of demand bar. Aggressive SHORT can be attempted here. I did not take SHORT here since the subsequent bearish bar lacked strength from volume. The decline was on below average volume indicating lack of selling interest. Probably all the demands are not yet absorbed.
F = Another hammer on strong volume, following a weak raly heading in to the supply zone. This is followed by a bearish inside bar and at average volume. Rejection of day high. Entered SHORT below F's LOW, but here again bearish sentiment started getting weak and I scratched the trade in next bullish WRB.
SHORT at 25678, Initial SL = 25715, Scratch at 25688. Loss of 10 Points
A narrowing range followed near previous day high and supply zone.
G = Price breaks below the consolidation, An effort to fall, but the next bar was a small bullish bar closing at its top on above average volume, Price volume anomaly was seen, Eventually demand came up near H. These demands need to be absorbed before a mark down starts.
H to I = A correction rally, If the rally lack strength, then this will be my SHORT trading zone. Before I, there is an effort to rise, followed by another bullish bar closing at its top on above average volume. Rally is showing strength, Then suddenly a bearish bar closing at its low on above average volume followed the previous bullish bar. This indicates dominating supply on previous bar. This is then followed by a test of demand, which was successful. SHORT trade got triggered.
I avoided the SHORT as it was quite close to the closing hour. But that was a mistake which I regret now. I used to stop taking trades after 3PM while trading equity. That practice made me skip this trade. But here in future I need to trade till 3:30 PM.