Short selling strategy

[nsnarayan10]

Hello friends,

Suppose I have short sold and a few candles later I see a candle with a very small body towards the bottom of the candle, this could mean the selling pressure is coming to an end and buyers could jump in, right? If yes, would u suggest me to withdraw my short sell position?


Thank you.

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[timepass]

Hello friends,

Suppose I have short sold and a few candles later I see a candle with a very small body towards the bottom of the candle, this could mean the selling pressure is coming to an end and buyers could jump in, right? If yes, would u suggest me to withdraw my short sell position?


Thank you.

Sent from my Redmi Note 6 Pro using Tapatalk

Please post a sample chart. There are many variables. A small body towards the bottom is a kind of hammer or doji, has to be combined with many other things.

 

[nsnarayan10]

Please post a sample chart. There are many variables. A small body towards the bottom is a kind of hammer or doji, has to be combined with many other things.

I haven't yet started trading so I am still learning. But if u were to answer my question what would it be? I would personally think of exiting as the body at the body on a red candle hints at lesser selling pressure so may be the buyers could hop in. Please let me know your opinion.

Thank you.


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[timepass]

I haven't yet started trading so I am still learning. But if u were to answer my question what would it be? I would personally think of exiting as the body at the body on a red candle hints at lesser selling pressure so may be the buyers could hop in. Please let me know your opinion.

Thank you.


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Me ? For me it would be a no trade because of insufficient data. But for you I would recommend reading the material at http://www.investopedia.com and also at babypips.com

 

[nsnarayan10]

Me ? For me it would be a no trade because of insufficient data. But for you I would recommend reading the material at http://www.investopedia.com and also at babypips.com

Ok, I got a pic. So i am asking abt the small red candle right next to the big red candle. The next one is green candle but assuming the data was only till the small red candle would you suggest me to withdraw my short selling position?

Thank you so much

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[vishal_k04]

Instead of exiting, try to trail your SL at previous candle (high/low), depends upon position. I'm using this method for long time. Most of the time i exit with small profit but there are some moments where i extract max profit from the market.

 

[nsnarayan10]

Instead of exiting, try to trail your SL at previous candle (high/low), depends upon position. I'm using this method for long time. Most of the time i exit with small profit but there are some moments where i extract max profit from the market.

Very good idea. Thank you so much. Just one question vishal ji, if a red candle looks like hammer , it indicates a selling pressure unlike buying pressure in a Green candle, right?

Thank you.

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[vishal_k04]

Very good idea. Thank you so much. Just one question vishal ji, if a red candle looks like hammer , it indicates a selling pressure unlike buying pressure in a Green candle, right?

Thank you.

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Hammer indicates reversal irrespective of the colour. But we should also remember that effect of candle stick pattern is directly proportional to time frame.

 

[nsnarayan10]

Hammer indicates reversal irrespective of the colour. But we should also remember that effect of candle stick pattern is directly proportional to time frame.

Hmm if its a red hammer candle, it means the prices will drop even further resulting in more red candles right?

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[vishal_k04]

Hmm if its a red hammer candle, it means the prices will drop even further resulting in more red candles right?

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No, both green & red indicates similar reversal.