Many people think technical analysis is magic. No. It’s just the reflection of people’s fear and greed on the chart.
1. What do Candles say?
Every candle is a battle. A green candle — buyers win. A red candle — sellers win.
If after a long green candle a small red one appears, it means the buyers are tired. The reversal is near. Just like it is today in NIL.
2. 3 Golden Rule:
- The trend is friendly: In a falling market look for shorts, and when it rises look for longs. Don’t do the opposite.
- Resistance and Support: If the price turns back from the same place 2-3 times, then it is a strong level. For NIL it is 0.113. If it breaks, it will fly; if it doesn’t, it will drop.
- Volume doesn’t lie: If the price goes up but the volume decreases, then the rise is a fake one.
3. The 2 indicators that work the best:
- RSI: Above 70 — it has inflated and will fall. Below 30 — it’s cheap, it will rise.
- Moving Average (MA 50/200): If the price is below MA 50, the market is in the hands of the bears.
4. My system (ROBO strategy):
I look at the daily candle. If the green candle is inflated, I expect a red one tomorrow. But I never enter without a stop. Stop is my life insurance.
Remember: Technical analysis doesn’t give you 100% profit—it helps with 60% of the correct decisions. The remaining 40% is risk management.
The trader who guesses is not very knowledgeable; he is a trader who protects the profit-taking (wife/companion).
