Price Action Analysis vs News
Prosenjit Ghosh
SEBI Registered Research Analyst | Price Action Trader | Mentor | Trainer | Algorithmic Trader | Quant | Winner of Zerodha 60 days & Fyers 30 days Challenges.
Today the Indian Stock Market fell down sharply along with other global market indices. Is this an outcome of a Bad News which happened today, somewhere in the world or could it have been predicted much before?
After the market falls down, it is easy to give excuses and put the onus on some or the other news. As an #priceaction analyst, I don't follow any news, I believe news only acts as a trigger, the market already knew what needs to be done and the charts are a reflection of that.
If you don't believe me, then just look at the #NIFTY50 daily time frame chart.
At around 25000 a Spinning Top formed. This is a simple Reversal Candlestick Pattern, whenever this pattern forms after a big rally, the trend changes. Not only that, last Friday Price broke the nearest Support and closed below it. These are quick signals that the market wants to go down in the upcoming sessions. And exactly as per #priceaction today the #nifty50 price fell down sharply.
News cannot be traded but #priceaction can be, if we know the answer to the following questions.
Don't forget to comment and tell me the answer to these questions and what else you see in the nifty daily chart that could have helped you to trade in the right direction?