In the Infosys trade,
- You can see bearishness from the wicks as mentioned above.
- You can shift the selling point to Previous Day’s Low as per Price Action Theory. The SL also gets reduced in this way.
- Now, Note that it did not trigger sell at all as per our theory, It should trigger sell if this current candle’s low is broken tomorrow. Right?
- But, Our current bet is on the “price action” (read, high movement) that is created by the flag’s lower trendline break. As the trade is not confirmed and it is a chart of D frame, It is preferred to exit in Intraday itself!
- There are many cases where it rebounds back sharply to the channel.
Note – As we know, Two trendlines create Channel. The upper trendline and lower trendline of Flag is creating a channel hence.
In this chart, I took liberty to draw the proper target and stop-loss as per plain theory.