Advance Price Action Trading with Demand Supply & More

[sabhlok_r]

The first two hurdles Banknifty will face while going down

View attachment 39661

Bank nifty entered the first DZ.

 

[AlphaT]

Bank nifty entered the first DZ.

What would you do now? Try- no right or wrong answers

 

[sabhlok_r]

What would you do now? Try- no right or wrong answers

Looking at the weekly chart, the first DZ is 31471 -30901 followed by 29695-28924.
So on a daily TF, shall go long upon PA confirmation, with closing above 31340.

 

[AlphaT]

Looking at the weekly chart, the first DZ is 31471 -30901 followed by 29695-28924.
So on a daily TF, shall go long upon PA confirmation, with closing above 31340.

What is the reason for closing above 31340 for long?

 

[sabhlok_r]

What is the reason for closing above 31340 for long?

Because the high of DZ candle is 31337.

 

[noobT]

Dear alphaT and all others, Happy new year!!

Sharing my analysis of nifty on 3rd Jan when it formed an ERC zone in the 15 min time frame. Entry was at 12250 and exit was at 12233 since it bounced from the upper DZ at 12190, engulfed two SZ's and hit the trailing SL. Alternatively, the position could have been carried over to the next day since it bounced from the upper of the two stacked DZ's below. Please provide your feedback...

The 1hr HTF during the same period shows two DZ's being engulfed...

 

[The Pig]

Bro, is the DZ/SZ marking correct? whats the probability of the zones holding since its only one candle. is it better just to avoid such trades?

 

[gjshenoy]

What is the reason for closing above 31340 for long?

May I add something for this? Yesterday, in a single shot Banknifty reversed back and almost reached the origin of compression zone. (even in Nifty)... So its reasonably valid to expect a bounce at this level, atleast in LTF, provided we get confirmations of reversals .... Am I correct?

 

[gjshenoy]

View attachment 39672

Bro, is the DZ/SZ marking correct? whats the probability of the zones holding since its only one candle. is it better just to avoid such trades?

In my opinion,' single candle " is not an issue.... The fall is from a supply zone, and the fall in a single candle certifies the quality of movement... the probability of DZ being broken is high..

 

[AlphaT]

Because the high of DZ candle is 31337.

Ok, but I think an easier method for looking at conf would be engulfing of two LTF SZs, that would entail the trend changing on the LTF at least. Would you agree?