Tip 3: Price action trading

I have started learning the concept of price action trading. I have been very fascinated by this concept. thanks to all the videos available on youtube. Especially pivot call youtube channel. For live update join me on Telegram .

Look at the below chart of HDFC on 11th June 2020 and 12th June 2020.

11th June CPR is below the last day CPR, sign of bearish market. 1st three candle opened below CPR confirming the bearish market. After that market keeps on falling. The upper point will be marked as a supply zone. 11th June CPR is virgin CPR which was untouched on that day. we should always mark these supply zone points. It might someday act as a resistance, support, or breakout zone. 12th June 2020 CPR lies below the 11th June CPR, hence bearish market. Next day candle opened very low of CPR, hence it rallied till the supply zone to check if it can be broken. It was not able to break it, hence proving it a big reversal.

As you can see the next day it falls till the last day Demand zone. Hence buyers and sellers are fighting to decide the fair price. Traders like you and I can enjoy some trading between that.