Attached is the 1H chart of GJ. Today morning, we saw GJ going down nicely to its big support at 146.88. The pace with which the move was made and that too during the Asian session gave us the indication that something was not right with the move down.
Usually, in any sudden move up or down, we need look out for pin bars which tell us that there is a change of the price move. As can be seen in the chart, a bullish pin bar at the swing low was an indication that price would reverse and thats what it did.
You can also see that at every swing point, the price bars clearly tell you the change the direction. All you need to do is watch the bars and take the trade accordingly. Any bar finishing near its middle after piercing through a support or resistance shows change in the direction of price movement and thats what you can clearly see in all the bars where there was a reversal.
The fact that there was no more down movement after the Asian session and the fact that the price has recovered somewhat shows that there is still strength left in GJ and it looks good for more. Long on dips is the way to go.
No comments:
Post a Comment