Advance Price Action Trading with Demand Supply & More

[AlphaT]

2 scenarios playing out in bank nifty today. Is this also an example of cap out reversal ? Lets see.
View attachment 38489

This is not a cap @sabhlok_r. For cap you would need a stand alone zone(zone that is'nt reaction to another zone) that is gets engulfed before price can react from the cap zone. But good try, keep practicing!

 

[sabhlok_r]

This is not a cap @sabhlok_r. For cap you would need a stand alone zone(zone that is'nt reaction to another zone) that is gets engulfed before price can react from the cap zone. But good try, keep practicing!

Thanks, will go through the video one more time.

 

[AlphaT]

2 scenarios playing out in bank nifty today. Is this also an example of cap out reversal ? Lets see.
View attachment 38489

Take a look at the 5 min chart, the 30 min doesn't have a cap but the 5 min has the approach flag engulfed. Since this SZ does'nt have backing from the HTFs so need to be careful with shorting, at best a quick 2:1 scalp short with strict SL. The zone itself is quite compressed so taken the upper most portion to reduce zone width. Personally, I would refrain from taking a short here, but just for learning I expounded upon the observable PA.

 

[primitivetrader]

Take a look at the 5 min chart, the 30 min doesn't have a cap but the 5 min has the approach flag engulfed. Since this SZ does'nt have backing from the HTFs so need to be careful with shorting, at best a quick 2:1 scalp short with strict SL. The zone itself is quite compressed so taken the upper most portion to reduce zone width. Personally, I would refrain from taking a short here, but just for learning I expounded upon the observable PA.

View attachment 38490

"but the 5 min has the approach flag engulfed."
is this flag is the circled one on the left? if yes, what is the significance of this flag getting engulfed by approaching PA?

 

[AlphaT]

Take a look at the 5 min chart, the 30 min doesn't have a cap but the 5 min has the approach flag engulfed. Since this SZ does'nt have backing from the HTFs so need to be careful with shorting, at best a quick 2:1 scalp short with strict SL. The zone itself is quite compressed so taken the upper most portion to reduce zone width. Personally, I would refrain from taking a short here, but just for learning I expounded upon the observable PA.

View attachment 38490

What's happening now is interesting! [Not a trade recommendation]

 

[AlphaT]

"but the 5 min has the approach flag engulfed."
is this flag is the circled one on the left? if yes, what is the significance of this flag getting engulfed by approaching PA?

No the circled portion was to highlight the compression at the zone. The blue check mark was the engulf of the approach flag!

 

[primitivetrader]

No the circled portion was to highlight the compression at the zone. The blue check mark was the engulf of the approach flag!

can you please describe/explain the highlighted one and what is it significant?

 

[sabhlok_r]

What's happening now is interesting! [Not a trade recommendation]

View attachment 38491

Indeed interesting.

 

[AlphaT]

can you please describe/explain the highlighted one and what is it significant?

This is actually an advanced topic which needs a lot of explanation around the PA, would be better explained through a video. Hopefully soon.

 

[primitivetrader]

This is actually an advanced topic which needs a lot of explanation around the PA, would be better explained through a video. Hopefully soon.

thanks