Advance Price Action Trading with Demand Supply & More

[ShubhS9]

@AlphaT take a look at Vedanta 30 minutes chart..... is this valid CAP?

 

[AlphaT]

@AlphaT take a look at Vedanta 30 minutes chart..... is this valid CAP?
View attachment 42414

Yes, it is..

 

[vikki_trader]

The PA in the 5 min was not very clear w.r.t the Cap. In such cases go down time frames so see a clear PA. Look at the 1 min TF & now tell me did the Cap work?

View attachment 42348

Now look at the ERC on the 5 min. Look at the candle that Engulfed the Barrier, how it behaved. This calls for a deeper inspection on a lower time frame.

View attachment 42350


Now look at the ERC's PA on the 1 min. Was it really a clean ERC? Can you see the portion when the Engulf & the Reverse happened? This spoilt the ERC! This was an avoidable one.

View attachment 42349

@AlphaT - Thanks a lot for the detailed explanation. So I believe before entering into the trade, we have to validate the zone in LTF & the same should exist there. I see in LTF, ERC already formed & it is 2TB in 1min where as in HTF 5mins, it is FTB. Due to that, it is broken immediately in next visit. Are my understanding correct.

 

[AlphaT]

@AlphaT - Thanks a lot for the detailed explanation. So I believe before entering into the trade, we have to validate the zone in LTF & the same should exist there. I see in LTF, ERC already formed & it is 2TB in 1min where as in HTF 5mins, it is FTB. Due to that, it is broken immediately in next visit. Are my understanding correct.

Yes, whenever there is some doubt or any clarity required then go to lower time frames..

 

[vikki_trader]

@AlphaT , In Nifty 5min, i see the CAP DZ exists as fresh. But if I go down to 1min, I see it is almost touched 4 times. Am I correct. Also in 1min chart, there is a small DZ created (marked in blue), which is touched twice. So what is the probability of these zones to work successfully. Also here which one we have to consider as valid DZ

 

[Sanat]

Sir Thanks for nice & helpful video. At around 26th minute in video you had marked DZ which got stopped out. I see gap up before the DZ marked. If this gap was considered as DZ (as you had told) & traded then this trade was also profitable. This is what I think so. Correct me Sir if I am wrong. Thanks & waiting for your such knowledgeable videos.

 

[AlphaT]

@AlphaT , In Nifty 5min, i see the CAP DZ exists as fresh. But if I go down to 1min, I see it is almost touched 4 times. Am I correct. Also in 1min chart, there is a small DZ created (marked in blue), which is touched twice. So what is the probability of these zones to work successfully. Also here which one we have to consider as valid DZ View attachment 42415 View attachment 42416

The Cap on the 5 min is correct.. and you went down to see the zone in 1 min which revealed some insights.. good move! The zone was actually used up quite a bit before price left the zone..

 

[AlphaT]

Sir Thanks for nice & helpful video. At around 26th minute in video you had marked DZ which got stopped out. I see gap up before the DZ marked. If this gap was considered as DZ (as you had told) & traded then this trade was also profitable. This is what I think so. Correct me Sir if I am wrong. Thanks & waiting for your such knowledgeable videos.

In that video there is a comment by Siddhartha.. He mentions the same point, you can read the replies there..

 

[vikki_trader]

@AlphaT - Today Hdfc bank made a swift down move 881 to 871 in 15mins. Is it due to the compression happened as marked. But if it is correct, the compression exists till 854 levels, but it bounced back from 871 levels itself. Even I looked into 5min chart in the compressed area & dont get why it happened. Any insight on this. As today's low is in compression zone, can it be considered as CAP DZ.

Also today I see the flip zone worked perfectly, which was initially DZ flipped to be SZ. Am I right

 

[vikki_trader]

@AlphaT - In Reliance, today the 2 DZs (believe these are POI DZ as well) are broken in first attempt itself. Any reason for this behavior.