Had a quick discussion with one of my fellow traders today morning, He pointed out that something peculiar is happening with IndusInd Bank Share Prices at parallel support zone. Followed by the conversation, I quickly headed to 1D chart of IndusInd Bank to check out the Price Action. This is what I found…
IndusInd Bank Price Action Analysis on 1D Chart
From the beginning of October, Indus Ind Bank share prices have seen a sharp increase in the Trading Volume. It means more than usual trading activity is going on in the stock. Based on my observation, when a Stock experiences a Peak Volume like this, either it’s signifies a reversal or indicates the activity of Big Players.
As most of you already know, I always give more emphasis to Volume, But this time my focus also went to a trading formation that’s happening in Indus Ind Bank 1D chart.
Multiple Rejection or simply known as MR is one of the Price Action Patterns that’s widely recognized in many time frames and across all market segments such as Stocks, Futures, Commodities, Currencies etc..
Multiple Rejections are similar to False Breakouts as it often indicates Smart Money Traders buying or selling the stock at a better price by trapping uninformed traders. This pattern often occurs around Volatile Market conditions. It’s possible to trade this setup just like False Breakout. Once can utilize it for a long trade based on Good Risk – Reward in Indus Ind Bank.
But just like any Price Action Trading Setups, even this one has two outcomes – Either it could succeed or fail. If you look at the Price Action Contextually (Take a look at the chart), Buyers are finding it very hard to push the prices higher. So if you’re trading this setup it’s better to take properly calculated risk.
I am pointing this out so that you’ll keep in mind an important fact – “Trading is all about probabilities”.
No matter how appealing a particular trading setup is, there’s always a chance that it could fail. To be a successful trader, you don’t have to be right in your predictions. Your job is to find High probability trading opportunities with less risk and better reward.
