VPA_TRADER

ACCUMULATION-TRIANGULAR-BREAKOUT-VOLUME-PROFILE

Long
NSE:ADANIPORTS   ADANI PORT SPECIAL
Disclaimer-:
1. FOR WHOM VOLUME PROFILE 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.

Volume Profile-:
Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price.
2. If the current volume is low, its mostly a pause before the trend resumes
3. If the current volume 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

POC-: The red line in volume profile is called Point of Control. This is the level where max volume of transactions have taken place.

OBSERVATIONS-:
1. Triangular Breakout and then resistance at 884 level.
2. But the recent volume is comparable to the historical volume that accumulated before the long rally happened. This time its highest.
3. I would bet another round of accumulation is happening. So breakout above 884 level will confirm the accumulation and long position can be taken

ENTRY-:
Confirmatory breakout above 884 level.
TARGET-:
Since the expected rally could be as big as previous one since the accumulation is highest in the current region so we aim for at least 100% Fib Ext Level- 1270.
STOP-LOSS
784 was a short-term resistance level . So somewhere below 784 would be a good stop-loss. Keep trailing stop-loss

EXIT
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 bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low)
2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit

**IF YOU LIKE MY ANALYSIS, KINDLY GIVE A THUMBS-UP AND SHARE IT IF POSSIBLE, HELPS A LOT :)

**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC.
TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO FOLLOW THE POST AND MY ACCOUNT.
**YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES
**ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED.

NSE:ADANIPORTS

Comments

Keep up the good work buddy!!
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Good Work Buddy. I'm following your post from now
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Fantastic post. Will keep this in my radar.
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I really enjoy reading such detailed posts rather than just a plain post that says 'Buy'. It shows that a person has taken the time to read and analyze a stock before showcasing a post! Much appreciated!
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VPA_TRADER sandeepbalachandran
@sandeepbalachandran, That's really encouraging sir. Here I was thinking may be its too detailed to become boring
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@VPA_TRADER, No buddy. Many of us enjoy reading stuff like this over 1 line explanations. It helps us judge the market better. Keep at it!
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ASHOK55 sandeepbalachandran
Yes we like a lot your details explanations
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