16/09/22

Previous day extreme compression but with huge volume, so there is expectation to get direction
whichever side price cross the direction on the compression trend line. Market starts with a price below
the bottom trend line so I hope price will continue to move in the down direction. Without any
confirmation I took theentry at 9:17 am when price just touch the trend line at price Rs. 570 with 100
quantity in sell order. I hope price can not cross previous day last three doji candles high. But within two
minutes it hit the stop loss at 572.5 I end the first trade with Rs. 250 loss.

Lesson – Avoid trading in first 15 minutes. Always wait for a signal candle at any logical position like
20 EMA or trend line.
Previous day inside candle so there is a possibility to breakout move. At second candle it close beloe
previous day low so took entry at the next candle in sell with 20 quantity at price Rs. 2549 but at the
next candle it hit the stop loss at price Rs. 2558.50. End the second trade with loss Rs.190.

Lesson – the first candle of the day was a big doji with long tail on the bottom side and throughout the
day price move in between the range, so its better to avoid this kind of range bound candle indication.
Second time its again form a reversal candle on 20 EMA, its may be a good indication for further
movement.
Previous day for last five hours strong range bound with heavy volume, so there was expectation to big
movement with breakout. The second candle was strong red with inside candle. I took the trade in the
next candle with low breakout with 30 quantities at Rs. 1413.50 in sell but in the next cadle it hit the
stop loss at Rs. 1419.50. so end the third trade of the day with Rs. 180 loss.

Lesson – The first candle was a big doji with bottom side long tail, so better to avoid or wait for more
confirmation. After inside candle next one reversal candle form, so its the second signal for take the
position.
Previous day strong wedge consolidation breakout with heavy fall but first cadle was doji with long
downside tail. Second cadle is inside with strong red soits a signal candle but better to avoid due to
previous doji candle and more price action needs to explore. Next three consecutive green but the last
one is reversal candle so it’s a second signal candle and took entry in the next candle with 200 quantities
in sell at price Rs. 443. Price continue to move and close 100 quantity at 2:1 ratio at Rs. 440.50 and
remaining 100 at Rs 1 more profit at Rs. 439.20 in the same candle with fear due to previous three
consecutive losses. The fourth trade of the day I closed with Rs. 630 profit.

Lesson- 2:1 profit is a good achievement. Today market is extremely one sided that’s why all the socks
continuously move in downward but this type of scenario happen very often, so long waiting with
hope is not a good choice. Second time confirmation with price action is very much necessary.
Previous day inside candle, so possibility of breakout movement. First time when candle close below
previous day low then I determined to take trade with breakout and with 20 quantities at Rs. 2786.90 I
made the position in sell side but after four candle it hit the stop loss at Rs. 2794.50. So it was a loss in
the fifth trade of the day of Rs. 152.

Lesson – always better to take position with second confirmation in price action. It’s may happen like
reversal candle in trend line or 20 EMA.

Second time entry with two legged pullback at Rs. 2773.90 with 40 quantities in sell and close with price
Rs. 2752 with 2:1 ratio with profit Rs. 876.
Second time entry by considering the second leg but it was late entry. The signal candle was a strong
bearish from 20 ema. Take position with price 437.75 with 100 quantity in sell position, close the trade
at Rs. 436.60 with profit Rs. 115.

It was a good set up for trade. 2nd leg pull back lie in between the trading range so better to avoid.
Second time 2 nd leg pullback create from top of the trading range so it was ggod set up for entry.
Previous day entire day huge down trend. Today starts with gap down so possibility to continue the
trend. But it was late and not very good entry. End thr trade with Rs. 50 loss. Very good setup for
analysis. Gap down opening but first candle range bound, better to wait. Down side range breaking with
good bearish candle so wait for second good signal but again a range bound candle, better to wait. Next
signal comes with second leg pullback with higher side of range. Good setup for entry.
It was a wrong entry. Sell (50 pcs – 3030.5). Buy (50 pcs – 3028) Profit – Rs. 125

Lesson – below 20 EMA wedge breakout may be a good set up for sell.

16/09/22
Previous day extremely high volume but compressed price action stock so there was possibility to move
after break out of trend line. Took entry after breakout with second leg pullback from 20 EMA. Again
took entry after making reversal from 20 EMA but it was an early entry before breaking the reversal low.
Close the position after 2:1.

20/09/22
Breakout according to expectation, two leg pull back, taking support on 20 EMA, reversal candle, good
set up for entry, close it with 1:2 profit.
According to the expectation, price break previous day high. Took trade after two leg pull back from20
EMA but hit SL.

Lesson: in 5 m chart the uptrend was not established. Price touch 20 EMA with lower high formation so
better to avoid.
According to expectation price cross previous day high. Took entry with doji candle, without two leg
confirmation hit SL.

Always take entry with strong candle with igher confirmation.

Support BO but with long red next doji so loss of conviction possibility of false BO. Took entry and close
with some profit.

22/09/22