Granules - Time to unwind long positions

2021年7月12日

Key Takeaways:

1. This indicates that buyers have lost their strength. The buying momentum is fading out. While demand has been pushing the stock price higher, there was significant selling.
2. The buyers managed to bring the price back to near the open, the initial sell-off is an indication that the price has likely peaked.
3. The massive volume on Doji represents significant unwinding of long positions.
4. The price may even consolidate instead of falling down. But there is no use in holding a position during consolidation(until and unless you are a long-term investor) because that has a huge opportunity cost.
5. This can be the right time to close your existing long positions.
6. Obviously, don't take my word for it. I am nobody. Try to do your own analysis, observe the price action, check the response of the market, and take your decision accordingly

You are always advised to use an appropriate Risk-Reward ratio as per your strategy.

P.S: This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.