Amit: Guess the reason.
Amit: Areh Dotted Line is the Trigger. TradingView Chart
Amit: Price Action is basically guessing what can happen based on the past patterns.
Amit: TradingView Chart
Amit: Now see what happened in the last time it broke the ATH.
Prem: Yes it fell
Amit: So I am guessing it will do the same →
- It will make a green fat candle as it did today which will “close” above the ATH.
- Tomorrow another green candle whose “high” will break today’s “high” but not in that much strength.
- Then the next day, it will snap
Amit: But the point is the snapping happens in the middle (high+low)/2 of today’s candle. So I am keeping an SLM today itself at 2480.
- So, I will short if 2480 breaks.
- If 2480 breaks today, then it is, even more, weaker than our thought process.
This is net of all that went on my head.
Another quickie is → Since in the whole setup we are expecting the high of tomorrow will be max 30 pt far than today’s high. Just short it right away with high+30 pt SL and forget.
Prem: Ok That’s too aggressive though
Amit: No actually. TradingView Chart
As per our whole assumption, We are then shorting here.
But, yes, should be shorted tomorrow