Comment on Single Candlestick patterns (Part 1)

Vignesh Doraiswamy commented on 19 Jan 2018, 05:39 PM

Hello Karthik
My doubt is with the concept of selling on a red candle day and buying on a blue candle day. I saw few queries about this concept in the above comments. But i’m not clarified with the answers. So let me elaborate a bit and please make me clear.
1) I must buy strength and sell weakness.
2) For eg: I’m going long today with SBIN at 308rp. Since today(19-1-18) is blue candle day. I’m buying strength.
3) Suppose 22-1-18 also seems to be blue candle day and SBIN stock is being sold at 315rp.
4) Let us consider 24-1-18 to be red candle day. And the SBIN stock is sold at 305rp.
5) Should i sell my stock on 22-1-18 for 315rp to make a profit of 7rp or sell my stock on 24-1-18 for 305rp and make a loss of 3rp as it is said that i must sell on red candle day ?
6) Shorting on red candle day would definitely make profit given if the stock prices go down on next few days. But how would selling the shares that i bought on 19-1-18 on a red candle day make profit?

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