Tata Power in Demand Zone
A demand zone is an area where buyers have previously stepped in aggressively, leading to strong price reversals. It is identified by looking at past price action, not indicators.
1. Identifying Tata Power's Demand Zone
Strong Buying Area: Look for a historical price level where the stock has reversed multiple times.
Sharp Rally After Base: If price consolidated at a level before making a strong upward move, it signals a demand zone.
Large Bullish Candles: Areas where price moved up quickly and strongly indicate institutional buying.
2. Entry Confirmation in the Demand Zone
Once Tata Power reaches the demand zone, wait for price action confirmation before entering:
✅ Price Slowing Down:
If the stock was in a downtrend but starts making small-bodied candles (dojis, inside bars), it indicates selling exhaustion.
✅ Rejection Wicks (Long Tails):
If the price enters the demand zone and forms candles with long lower wicks, it means buyers are absorbing sell orders.
1. Identifying Tata Power's Demand Zone
Strong Buying Area: Look for a historical price level where the stock has reversed multiple times.
Sharp Rally After Base: If price consolidated at a level before making a strong upward move, it signals a demand zone.
Large Bullish Candles: Areas where price moved up quickly and strongly indicate institutional buying.
2. Entry Confirmation in the Demand Zone
Once Tata Power reaches the demand zone, wait for price action confirmation before entering:
✅ Price Slowing Down:
If the stock was in a downtrend but starts making small-bodied candles (dojis, inside bars), it indicates selling exhaustion.
✅ Rejection Wicks (Long Tails):
If the price enters the demand zone and forms candles with long lower wicks, it means buyers are absorbing sell orders.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Checkout -> t.me/+RxMJZ-xOGy02MjBl
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.