The most valuable wealth of a trader is his knowledge.
Knowledge is power, and in trading or investing, you need the power of knowledge to increase your odds of success. Understanding the Price and time scale in the markets is one such element of knowledge that is crucial.
The use of scale in trading is like separating the wheat from the chaff.
Most traders depend on and use the Price action to trade. But most of them don’t know or understand that without using the SCALES, they can’t read the correct action of Price.
And so, if they can’t read the proper action of Price, then how could they trade profitably? That’s why the knowledge of scales is so crucial.
The Price and time scale separate and tell you the non-trending portion of the Price, which is useless. When we discard the waste portion of the Price, we get a clear picture of the trends and reversals.
So, let’s look at today’s Nifty Intraday 05-minute chart to understand how Price and time scale knowledge identify the trend reversal.
Today, the Nifty opened with a gap-down.
Then it jumped 243 points and again came down by 176 points. So, it was a highly volatile day.
But as users of the Price and time scale technique, we waited for the proper opportunity to appear. Finally, the opportunity came.
Around 12:30 pm, Nifty broke the Price & time scale level (Green oval), and that breakout confirmed the intraday reversal. Then, soon, the bulls regained control, and the Nifty jumped 140 points.
So, remember, knowledge of the Price and time scale is essential because the scale on the charts helps to see the action of Price and time more precisely. Then, it becomes easier to identify trend reversals.
If you want to know more about the Power of Scale Method, then click here or read the post below to understand more about the method.
How ‘Price & Time Scale’ Played a Crucial Role in Today’s Intraday Reversal?
