Hello All,

Let's understand in simple terms, how we can find the accurate point for Buy and Sell.

When we see the market in a particular direction which means either up or down, looking at the chart it can be easily known.

Don't scare to trade if you want to do it. It' one of the market nature/behavior.

Below is one of the examples of down trade. What do You find?

You see, the market has made a high point(not down), next it was down and again came up but quite a difference in 1st high point it's down close. The next market goes down and made one deep, from the same point it came up and it was one sight direction but did not touch or cross the 2nd high and again went down. Exactly at this point, you have to draw a trend line with touching of a top point from 1 high.

It just look like how the ball going down on stairs.

After drawing a line which call as Trend Line, you will see the line direction is look at downside. Now here wait and watch.

After drawing a line when it goes down you have to wait till it come up again to the near Trend Line. Because of the Trend Line you will get the correct point where to Sell or Buy(for Up trend).

After you take a trade at sell side, at chart you know from where it was came up, that point will be your profit booking point, because at this level there is possiblity that Support gets created and it might started moving up side. So, for safe trade book the profit at the previous low after taken the sell trade.

Key Point

When price action cross the Trend Line(Down Trend Line or Up Trend Line), it may can become a more stronger and start moving at one sight direction. This means you took a sell position and the same time the price crosses the trend line(wait for 2-3 candle to see if they close above the trend line), its a time you have to exit from your position because the price cross the trend line which means the market trend now has been changed. It was down, but now can be up.

Stopp Loss

We always have to trade with the stop loss to avoid big losses. In Trend Line, you can set the stop loss at the previous second high point(for buy-side previous second low point)

Aamdani atthanni