While analyzing 9th Dec Technicals….. here is what I said……. “Now we had a false breakout and you have to figure it out as it will have its impact on Next week”.
The one who paid attention to the above sentence……. would have got big reward today.
The False breakout reaped the benefits today
Have you guy’s bye hearted my lesson?….. Price never stops….. it is in continuous motion.. Here is the evidence….. Market gaps up on opening… An opportunity… weak market… then gap up….
An aggressive trader takes entry immediately on opening as S/L is very low… just above False Breakout candle at “A”….
For conservative traders… entry is at C… on break of first swing low of the day….. S/L can be at the high of the day… Then onward, it is one way traffic…
Daily is bearish
Daily remains bearish…. 4700 is where nifty got weak support thrice, during recent times. That point is the last hope for bulls and they may try to pull the triggers….
Just keep it for your observation…… breaking of 4700 should be with a bang…..
Weekly supports daily
Weekly and daily agree on a common support level……
Now after few years of experience… what all you need to judge whether the market is strong or not is…… just eyeballing the chart….
Here we go….
People are running around shows great panic
Now look at big circle A….. The starting point is top horizontal line of that box i.e:5200…. The price gaps down and breaks the support of 5300…. people now start panicking and run around for the cover…. This show goes on and on…. all big players try to cover at the possible highest levels which makes it to scale up to 5100 levels. Again there are investors who buy at 4750 with the theory “Buy The Dips”!!!!…….. That box shows unstructured market… Unstructured market always shows weakness…. a structured market has clean and neat swing highs and lows….. now, how the shackles are broken….. It needs a big event….. the event in this case was huge gap up….. That gap up can be described as…. a man of 35 kg lifting the 100 kg weight…. You know the result…….
Have a nice time…..
4xraghav 
Could you please explain last chart bit elaboratly? Thanks for your time
gr8 stuff as usual….was missing them surely…
thanks for starting the blog
raghav same here….I too missed some profit today…if you were explained these concepts and levels yesterday itself..then we may had make all these 100 point today..
thanks for your guidance
Raghav,
Yes me too have some confussion here (abv bala’s querry)…please explain a bit in detail…..
how the shackles are broken….. It needs a big event….. the event in this case was huge gap up….. That gap up can be described as…. a man of 35 kg lifting the 100 kg weight…. You know the result…….
Also I want some clearity on above words….you mean gap down here?
No .Vijay..I was talking about gap from 5200 to 5400..After box A ,what is the next main event..it is gap up….Once that gapped up..next what happened??…hope this clears your doubt.
Hello Raghav,
How the lastweek false breakout played in today trading? I couldn’t able to grasp completly. Sorry if it is silly question..thanks
Price never stops……it is in continuos motion……now you got it???? just imagine if BO happenned on moday the downmove would have taken place on tuesday…similarly friday and Monday….are you getting?
Extremely sorry Raghav. I think i am missing some concept here… sorry if i am burning you
Bala,
what all you need to do now is go back and study as to “what is a breakout failure”…Do go through my posts in TJ..it will definitively clear your doubts….