ASX 200 : The Index is moving in range from the past 1 month with buyer and seller fighting against each other.

As a trader it's bad timing to enter and exit as they might catch up in the move, but as it is said a smart trader can earn in the flat market if he knows when to book profit and loss.

When I went through the charts I observed some things in the chart which I would discuss ahead which can help the trader to enter the position with a bit of confidence.

The first thing which i believe is when you don't get any view in a bigger time frame move to a short one.

I shifted my analysis from daily to 1 hour, In 1 hour we can observe a Double Top formation whose breakout can be seen below the 7310 level closing basis.

Another observation was 3 inside candles which breakdown was seen, the question is whether this is going to sustain or move back because we have to wait for more 1 hr candles.

So instead i thought lets go and check the 15 min time frame. In 15 min time frame i noticed a support zone (red line in chart) which is a strong support zone which suggest a bounce back can be seen in the index, but as I always believe for confirmation trading because if the risk is not favourable its waste to enter in such move so not to enter in the upside move till the time it does not close above the trading range.

I would advise to go short only after the candle closes below the Support zone with RSI confirming (if RSI close is below 40 then only enter)
Macd is trading below 0 it should at least sustain below to enter the short side as well.

In the 15 min frame the chart is trading below the ichimoku cloud if this is also sustained then only go for short.

Sell below Support Zone.

Jul 15 2021

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