SL hunting
Market operators try to trap retailers through every possible ways.
Here I’m telling you the tips how you can avoid being trapped.
Wherever we try to learn about trading and stock market first thing we will take use is youtube and
books, and we get simplest and basics knowledge.
Actually it is must to start gaining knowledge, but after learning basics like chart patterns,
candlesticks , support and resistance people start thinking they have the knowledge to trade and
now will be making money.
This is where problem starts. Operators use this psychology to trap newbies.
They create and show all the things that we have learnt in charts and force us to take trades as per
them and eventually trap us.
Ok now the question is how we can avoid being trapped, answer is simple you gotta gain experience
that’s it. It comes with experience.
Let me tell you the areas where retailers are trapped-
At support and resistance region
Trendlines
Chart patterns
1. At support and resistance
We have learnt this basic concept that
Buy at support and sell at resistance, so we keep looking for selling signal at resistance to sell, and
same bullish signal to buy at support but this logic is used to trap retailers.
Look at the image below price come at resistance and made red candles people entered on sell side
what happened next to you can see.
Look at the next example
We know this concept that once resistance breaks after breakout we have to enter right,
Breakout happened and bullish candle also formed you see what happened next.
Now you will ask me this question,
Then what to do how to avoid it ok ok calm down and look for this images
In this you know this concept at support we need to buy but exactly where to buy and
perfect entry is what makes you money.
At support first time it came if you see many people entered there, but then market hit all of
there SL making red candle and giving breakout for downside, and then moved up sharply.
This is the secret all the time
Buy at support and sell at resistance is true but do it only after when SL have been hit and
retailers have been trapped.
In above image as well buy at support worked but only after hitting the SL of retailers.
Lets look at one more example
After testing the support again and again it broke for downside, and it came for retesting.
Now tell me what you have learned,
Wait for retesting, let the market prove,
Yes man here it proved right it broke and then retested as well, once more and more sellers
came in market sharply moved up and trapped all the SL.
This happens everytime everywhere at support resistance, chart patterns, trendlines.
Now go in charts and start looking at it this way that operators are trying to speak with you.
And remember,
Jo dikhta hai wo hota nahi aur jo hota hai wo dikhta nahi
Agar aapko patterns aasani se dikh rha hai matlab wo dikhaya jaa rha hai
Agar breakout pe baad, agar retest pe haamre wait ho rha hai matlab bakra ko
invite kiya jaa rha hai halal karne ke liye.
I hope this helps follow me in Instagram and youtube for detailed knowledge
Channel name is – jayprakash nage , click on the name.