ST Sir, you said, you bought NF at 4644.50. What is the reason to buy there. According to me, I would have bought it at crack of 2.55 PH (4661.60 + f ). Please explain so that we can sharpen our skills.
Thanks and regards
Manoj
Manoj,
If you had observed the market action around 4644-42 it was showing tremendous resistance for going down...I remember 2-3 times bears tried hammering it but it bounced back....this indication you can get only if you are a good screen reader....but there are other factors apart from what the screen was showing you....
1) 30 min in OS area
2) 5 min showing reversal,it also showed a positive divergence.
3) NF breaking the downsloping channel.
4) Market Profile indicated possible bottom for the day as 4645-50 area,it went down a little more and reversed
It is always amalamation of 3-4 factors which give us reliable reversal...but the signal one can get on break of downward channel....4644 was a level corrosponding to I had once talked about cotton being pressed into a gunny bag....at some point it refuses to take any more ....
Cannot explain this phenomenon....only screen time and experience will teach you that....but it happens and one can see it in the live market.....
Hope I have answered your querry....
Best wishes,
Smart_trade
