Friday, 14 August 2015

14082015



In today’s post I am going to highlight the role that the higher timeframe traders play.  For that, I would like to draw your attention to last few days’ price action, especially since Monday this week.  Here is the chart,




I would like to bet on the probability of remaining in the range or breaking out (reversal), not for the break down.  Why?

Because I feel higher timeframe traders are going to play their role.  They will act at higher timeframe support and resistance and this area seems to be a good support.  It is very evident from the chart that market is in the process of making the triple bottom.  In last two days it bounced from the same area, so it seems those traders are buying near this area.  Yesterday also there was a last minute rush to buy from that area.


 Now today it opened gap up just above PDH (as per my broker’s chart).  First candle was a big red candle.  Then it seemed to take support at BRN 8400 and traded in a narrow range.  I went long on break of this narrow range.  A Pressure Play kind of formation gave me more confidence to enter there.  Plus it was the lowest point I could enter as I thought there would be a lot of order flow above PDH/DO as it would confirm the reversal.  Also if reversal is confirmed, we can anticipate trending kind of day (type 1 trend day).  As expected, it moved well.  Could not resist myself to book it at BRN.  Took second trade at the fag end when TRAP pattern happened.  Booked it at RN.
Today's chart,


  
Reversal confirmation.


 Keeping an eye on bigger picture is always going to help.

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