Many traders avoid the Price & time scale on the chart and just focus on the Price action. And that’s a big mistake.
Because when we see the chart without the knowledge of scale, it becomes hard to read the correct action of Price & time on the chart. But when we see a chart with the knowledge of a scale, then it becomes easier to understand the market trend.
So, let’s have a look at today’s Nifty Intraday 05-minute chart to understand how the Price & time scale pinpoints the reversal in the trend.
Nifty today opened gap-down. And seeing that, many intraday traders could have gone for a short trade. But around 11:00 am, Nifty broke the Price & time scale level (black oval), and that confirmed the intraday reversal. Then soon, the bulls regained control, and the Nifty jumped 150 points.
And here is how I used that buy reversal signal for taking the intraday trade.
So, remember, the knowledge of the Price and time scale is important because the scale on the charts helps to see the action of Price and time more precisely. And then, it becomes easier to identify the trend reversals.
And if you wish, you can learn the Price and time scale technique in the Power of Scale course. You can check more details by clicking here.