Gapped down below
PDL and climbed up to form the first candle as a Master candle. Counter trend
gap, followed by price action in the opposite direction was the
cause of confusion for some time.
BOF occurred at IRH. Price started falling steeply. BRN-Spot/IRL
and BRN were located close to each other
(LOL). As the space was too less, didn’t take the BO trade, instead was waiting for BOF in one of these
DPs.Price fell below BRN in no time. Here I had the
space to enter, but support was found around 6280.
Now expected the price to go upto BRN and form a MSP before forming the second
bottom. Price was resisted a little
ahead of BRN, forming a Range high. Should have taken the BOF trade at Range high. Didn’t.
Then looked for BOF in Day Low. That too didn’t
happen. So no trades for the day.
Counter trend gap needs to be trusted for its
strength. In case of CT gaps, there is a
strong probability of the FTAs getting washed ashore in a jiffy. Next time,
you see a CT gap, jump in as soon as the
price starts moving in the direction of CT,
without bothering about the space with
FTA. That is a risk worth taking. This is Lesson 1 of the day.
There is a mental barrier to trust Range High/Low as a DP
and enter on BOF here. They must be
trusted, especially when a double or treble bottom/ top is being formed. This is Lesson 2 of the day.
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