Why is it moving up and down like that? I do not know the answer but I would like to reinterpret these movements in terms of classic tug of war between buyers and sellers.
Price fell from 5080 simply because MORE SELLERS EMERGED at that level than there were buyers.
Price recovered from 4920 because MORE BUYERS EMERGED at that level than there were sellers.
You might think that this is stating an obvious fact - but it has the advantage of helping you plan your trades.
For example, if 4920 were to break in the next few days, then you can take a bet on sellers having beaten the buyers and can go short at that point with a judicious SL
On the other hand if 5080 were to break on the upside, the buyers have won and you know what to do.
Until a winner emerges, it is not safe to take a huge bet on who is going to win. In other words, best to avoid trading in the range ( or trade in small volumes ) and trade in the direction when the breaking out /breaking down happens.
Until then cheer on from the sidelines.
If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com
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Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that trading and in particular day trading is not for the novice and there is significant risk of loss of capital in trading
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