Trading an Inside Bar After a Triangle Breakout - Continuation
Century Textiles - Risk-Reward Ratio 1: 4.80
Long Above 345
Stop-loss 325
Target 438
Century textiles broke out of a symmetrical triangle recently. It formed an Inside Bar today after a strong up move yesterday.
Two or more up days prior to inside days or bar increases the probability of upward momentum to continue after a breakout.
Trading With Inside Bars
Inside bars/days represents volatility contraction and a temporary pause in ongoing momentum.
Inside bars can be traded with the trend or at the time of trend reversal.
There are many variations in Inside bars. I'm not gonna write an article here explaining Inside bars. Just Google it.
The idea is to go long above the high of yesterday's strong up move. Expecting the upward momentum to continue after today's inside bar formation or today's pause in momentum.
Long Above 345
Stop-loss 325
Target 438
Century textiles broke out of a symmetrical triangle recently. It formed an Inside Bar today after a strong up move yesterday.
Two or more up days prior to inside days or bar increases the probability of upward momentum to continue after a breakout.
Trading With Inside Bars
Inside bars/days represents volatility contraction and a temporary pause in ongoing momentum.
Inside bars can be traded with the trend or at the time of trend reversal.
There are many variations in Inside bars. I'm not gonna write an article here explaining Inside bars. Just Google it.
The idea is to go long above the high of yesterday's strong up move. Expecting the upward momentum to continue after today's inside bar formation or today's pause in momentum.
Trade active
Trade closed: stop reached
Trade is closed.
One can use trailing stop-loss according to risk appetite.