Traders always get excited about a stock that makes a large candle move with huge volumes.
Here's what BF Utilities stock did today
What has BF Utilities stock done in the past after a large candle move -
Nothing eventually but something in short term
In the past, the stock has made a random big move which eventually resulted in nothing but in near term - the stock post that large candle move did end higher to the magnitude of 16-20% in following 6-10 weeks. Will the stock repeat the same pattern again? One cannot rule it out.
Historically, it has been seen that stock prices do follow a set behaviour till they stop following it. As a price action follower, we follow those behaviours knowing fully well that it might not turn out true this time
Science of Stock Price Action
There is no complex science behind Visualizing patterns. All you need to do - keep your eyes open. In simple words, keeping the mind open to several possibilities. I have captured these simple lessons in "Science of stock price action" video book.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
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Here's one Video Book reader comments about my book -
your book and posts have helped a lot in understanding charts. Look forward to reading more of your books and posts.
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