Price Action Analysis at its Best

On 16th March 2020, just before the Lock Down which started in India for Covid 19, I was taking a Live Session with my students for Elliot and Harmonics. In that Live Session students requested me to do a comprehensive analysis of Tata Motors.

At that time Tata Motors' share price was continuously falling and the internet was full of negative news.

And many so-called analysts were not interested in this stock at that time, moreover, there was Covid 19. As usual when prices drop for a long time with poor financial growth and bad news everywhere, either they prefer to give short trades or stay out from commenting on these charts.

As a Price Action Trader, I firmly believe in technical analysis and I stay away from all this news. because that creates confusion in the mind.

So that day when I was analyzing the Tata Motors Chart using Harmonics and Elliot, I found that the price of Tata Motors will go up to 1014 from 64.50. And that is approx. 1472.09% Return on Investment. And today the price has achieved this amazing Target.

That day I analyzed and found the following: -

1. A Harmonics Pattern whose bias was Bullish and the pattern was about to complete.
2. A Descending Channel, whose bias was also Bullish and this pattern was also about to complete.
3. And a Tested Trap Zone.

Patterns are always true if you draw them correctly. Hence, I told my students to go long till 1014. A target that I set using the Fibonacci Extension Tool and Elliot Counting.

I also gave this trade to the public in two sets:

1. On 17th March 2020, I shared this analysis in my Trading View account for public viewing and observation. Where I gave a Target till 600. Click this Link to view the Tata Motors Analysis dated 17th March 2020
2. Again, on 11th September 2023, after the price had reached the target of 600, I gave another trade on Stocktwits India for the remaining Target of 1014. Click this link to view the Second Tata Motors Analysis dated 11th September 2023.

Price Action is capable of giving such big trades and we can break the big target into several small trades. And these two trades are a big example of that.

Technical Analysis doesn't work when the market falls

When I gave this trade on Trading View some people opposed my Tata Motors analysis. They said when the market falls then Technical Analysis doesn't work.

But this is not true, Technical Analysis like Price Action works most of the time. And my Tata Motors trade is a great example to prove this point wrong. When you identify the correct pattern, it always works. And Elliot is a different ball game. It gives huge Target.

If Harmonics gives us the Entry, then Elliot gives us the Target, and vice versa.

Conclusion

While analyzing and trading one should refrain from watching news about the market. Mostly Good News becomes Bad News and Bad News becomes Good News, hence If you follow the news too much, then you might never be able to get these kinds of trades. Mostly you will feel confused. Your Analysis will tell you something and the news will tell you to do something else.

After you complete your Analysis, thereafter, do not listen to anyone, just take responsibility for your analysis and stick to it.

Patterns and Trap Zones always work when they are in conjunction. But the subjective drawing of Support and Resistance will never get you to the real Patterns. 95% of Traders make the basic mistake of drawing the Patterns correctly.

This is the main reason why they do not get the desired results.

If you wish to learn these concepts from a Mentor who leads by example, then do consider Joining the PG's Master Class.