Hi all,
Today I experienced an inexplicable move (at red arrow) in HDFC Life.
It was giving me +1.7R in first 3min itself. I held on. But then it reversed sharply in second candle, and hit my SL (-1R). But then I entered again and gained +2R. But why did it first hit my SL? How could I have known it?
My theory: I think it happened because it went down too fast in first 5-min candle. This may have led to profit booking and then a belief that trend was reversing.
Can anyone tell me his view on why this would have happened? I am looking for specific answers to a specific question. Thanks!
Today I experienced an inexplicable move (at red arrow) in HDFC Life.
It was giving me +1.7R in first 3min itself. I held on. But then it reversed sharply in second candle, and hit my SL (-1R). But then I entered again and gained +2R. But why did it first hit my SL? How could I have known it?
My theory: I think it happened because it went down too fast in first 5-min candle. This may have led to profit booking and then a belief that trend was reversing.
Can anyone tell me his view on why this would have happened? I am looking for specific answers to a specific question. Thanks!