Very less action over last two days as tight trading range continues. Yesterday though small but two good setups were presented.
A minor sideways continued just above previous day low.
At A : a hammer on very high volume rejecting the sideways and previous day low. A sign of dominance of demand over supply near 25.3K level. This is followed by a congestion. A violation of 3rd law.
At B : A bullish WRB on above average volume was seen. An effort to mark price higher. But on subsequent bars price was rising on low volume. Lack of buying interest. A re-test of supply is likely.
At C : An effort to fall which was quickly arrested by a small high close doji bar with above average volume. Next bar also is an effort to rise. A sign of absorbtion of supply. and now price is set to be marked higher. LONG above the effort to rise bar.
At D : as price approached the sideways resistance, at D, a bullish bar on above average volume was seen. But upper wick suggest a weakening of bullish sentiment. Next two bars are inside bars and high volume test of supply. A price volume anomaly. Tighten the SL to bar D low.
At E : An effort to rise above sideways resistance. But next bar shows buyers are being trapped as price quickly reversed with above average volume. Exit at bar E low.
LONG at 25339, SL = 25310, Exit = 25369, P/L = 30 points
Though I took the LONG trade perfectly, I failed to notice that at the exit of the LONG there was a good rejection SHORT trade from day high. But I failed to enter on time, and missed that
At F : Price again started showing bullish sign near day low at F where the exit from SHORT would have planned.
A minor sideways continued just above previous day low.
At A : a hammer on very high volume rejecting the sideways and previous day low. A sign of dominance of demand over supply near 25.3K level. This is followed by a congestion. A violation of 3rd law.
At B : A bullish WRB on above average volume was seen. An effort to mark price higher. But on subsequent bars price was rising on low volume. Lack of buying interest. A re-test of supply is likely.
At C : An effort to fall which was quickly arrested by a small high close doji bar with above average volume. Next bar also is an effort to rise. A sign of absorbtion of supply. and now price is set to be marked higher. LONG above the effort to rise bar.
At D : as price approached the sideways resistance, at D, a bullish bar on above average volume was seen. But upper wick suggest a weakening of bullish sentiment. Next two bars are inside bars and high volume test of supply. A price volume anomaly. Tighten the SL to bar D low.
At E : An effort to rise above sideways resistance. But next bar shows buyers are being trapped as price quickly reversed with above average volume. Exit at bar E low.
LONG at 25339, SL = 25310, Exit = 25369, P/L = 30 points
Though I took the LONG trade perfectly, I failed to notice that at the exit of the LONG there was a good rejection SHORT trade from day high. But I failed to enter on time, and missed that
At F : Price again started showing bullish sign near day low at F where the exit from SHORT would have planned.