Nifty 50 19th JUNE
Trading Session Recap: Profitable Signals Based on VPA Strategy
Today's trading session showed good momentum, presenting three profitable signals based on our Volume Price Analysis (VPA) strategy.
Signal Analysis
Signal 1: Reversal Candle at 9:50 AM
The first signal appeared around 9:50 AM, marked by the formation of a reversal candle with more than average volume. Following this signal, the market plunged by approximately 0.63%, confirming the effectiveness of the signal.
Signal 2: Tight Base Formation
After the initial plunge, we observed the formation of a tight base between 10:30 AM and 10:50 AM, which we marked as point 2. This base indicated consolidation, followed by a rise in momentum.
Explanation of Gap Between Points 2 and 3
You might wonder why there are no marked points between points 2 and 3 despite the market showing good momentum. The reason is simple: no signals fitting our VPA strategy emerged during this period. It's crucial to remember not to trade unless the market aligns with your strategy. Consistency in following your strategy is key to long-term profitability.
Signal 3: Reversal Candle at 2:35 PM
The third signal was observed at 2:35 PM, marked by the formation of a market reversal candle at the peak of the momentum. Following this signal, the market slipped by approximately 0.65%, reinforcing the validity of our VPA strategy.
Key Takeaways
- Stick to the Strategy: Always trade according to your strategy. Avoid taking trades without clear signals to ensure long-term profitability.
- Volume Patterns: Analyzing volume patterns is critical. Significant volume changes can signal market reversals or momentum shifts.
- Patience and Discipline: Patience in waiting for the right signals and discipline in following your strategy are essential for successful trading.
By adhering to our VPA strategy, we managed to identify and capitalize on three profitable signals today. For continued success, maintain your focus on volume and price analysis, and stick to your trading plan.
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