1. FOR WHOM AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED.
2. Do ask your questions in the comments if any.
Using one can identify probable accumulation or distribution regions by comparing the historical at Price and current at Price.
2. If the current is low, its mostly a pause before the trend resumes
3. If the current is higher or equivalent to historical levels then either the trend will resume or it may reverse. If it resumes then we have more strength in trend due to more accumulation. So a breakout/breakdown will confirm in this case
Previously stock rallied rapidly after years of consolidation.
Now we can see a significant consolidation happening where buying (blue) is greater than selling (yellow)
1. Moreover the current region has highest since the previous rally started. Definitely another round of accumulation is taking place.
2. So breakout above 815 will confirm and uptrend may resume.
3. Note the last breakout had low and RSI>80 suggesting it was a fail breakout. But now <70 and has increased.
So this time breakout might not fail
Above 840 confirmatory breakout
Around the support of consolidation 604.
Due to more accumulation the expected uptrend could be more than the previous rally. So 168% Fib-Ext Target.
Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep conservatively trailing stop-loss. Following can be used as exit signals or bearishness signals.
1. If there is pattern in 1W timeframe, stop-loss can be trailed to a nearby .(Like Candle Low)
2. If there is Divergence in 1W timeframe, better to exit at close of 1W since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit
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