There are times when market does something contrary to your belief system. The stock does everything in text book style and all out in open that can be seen through naked eyes but we are so biased that our brain rejects even what we see. Our response: This cannot be true.
Let me give you example: A setup which I completely rejected even when stock was doing everything in text book style.
The Stock is Tata Steel.
Down and Out: Tata Steel stock was hammered out of shape in 2015 with a well defined resistance at 200 dma
Cannot trust this: Tata Steel stock broke out above 200 dma
Tata Steel stock post breakout - rallied up 33% in following 30 trading days. A great trade missed just because we were so fundamentally negative on the sector.
Always Remember - Market does not care what you think. If you are following price action - then just trust your eyes.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers