First, let’s understand how to read this chart: In the beginning, the price is moving sideways without much direction. This shows that there isn’t much interest from either buyers or sellers. The volume bars during this time also confirm the lack of activity. But as the price

We can now see that the price has shifted from a quiet, stagnant phase to a strong momentum phase. This shows that demand has increased a lot while selling pressure is very weak. The change in character is clear because: -Strong green candles with high volume show strong

After a strong up move, the price has now paused and is consolidating near a key pivot point, the all-time high resistance where it previously went into a stagnant phase. What does this contraction mean in this zone? It means that instead of selling off after the rally, the

After the tight contraction, the price broke out with a strong candle supported by good volume. This was expected because after such a strong rally, the price had been consolidating in a very narrow range. To put it simply: - Strong up move ➝ driven by smart money

Now let’s see how to trade this setup: Trading a contraction setup is quite simple. Just check if the price is respecting the highs and lows of the range. Here, the price is doing exactly that, showing low volatility. The dry volumes also confirm that selling pressure is

Now that the entry is done, let’s look at how to plan the exit and what signs to watch for. In this chart, we can see that the price moved up and formed a gap zone. A gap zone simply shows urgency in price movement, whether up or down. Here, the price went up with a gap but

After the price went up significantly, it closed below the gap zone and also below the 10 EMA. Usually, when a stock is moving up with strong momentum, it doesn’t close below the 10 EMA. So, if it does, it’s often a sign that momentum is slowing down or fading. In this case,

And as you can see what the price did after that.

So, this was a simple example of how to analyze a setup, make a plan to enter and exit. Do not try to overcomplicate trading. If the process is kept simple then it will yield exceptional results🥂 Telegram: http://t.me/ChartistEdge

@ChartistEdge nice details

@PraveenBhard108 Thankyou Praveen 🤝

@ChartistEdge Very well explained!

@AdvShruti Thankyou Shruti 🤝🏻

@ChartistEdge Nice explanation! ... Look fwd for more such

@sriramshankar Thank you Sriram ji. Will try to post 1 analysis per week.

@ChartistEdge explained very well , thanks for doing this

@jain_sahab_85 Welcome Yash ji

@ChartistEdge Very well explained

@ShubhR18 Thank you Shubh 🤝

@ChartistEdge Gold Level Taught Beautifully

@karanshah137 Thankyou Karan ji

@ChartistEdge From uptrend to sideways

@ChartistEdge Hey I did not get that data sir .

@Kaushal09150613 Will dm you tomorrow morning Shah ji