Science of Stock Price Action: A nicely trending stock picks a moving average as support zone and on every pullback to that Moving average - it keeps taking support and then bounces with huge intensity. The skill lies in identifying the support zone and then sticking with it as long as it works.
Here's how MRPL stock has rallied this year: Every pullback to 100 dma has been rewarding experience for traders
Nothing works forever. When a stock gets extended the moving average loses significance and a new horizontal support emerges which then looks for next moving average to converge. That's how stocks climb. Science of Stock Price Action is all about learning how stock makes a text book move on the charts. The best learning comes from real experience and hence I share case studies to help one learn stock price movement which happens in a text book style
Premium Case Studies:
- Here's one nicely trending Chart that is Up 21% in last 6 weeks. I shared it as a Live Case Study.
- Two lessons I learned from MCX stock movement in 2017?
- How Britannia flushed out weak hands before making a move from 360 to 3860 in 7 years? How can one avoid such flushing out?
- Power Grid: Text Book Chart - "Ride the Wave"
- Following New Breakouts
The objective of the Premium Case Study is to learn from real stock price movements on regular basis and then look for similar text book opportunities in current environment. It helps one form a strong conviction in price action.
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.
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