For a while now, COFORGE has been moving in up-sloping channel. It broke out of that channel with very high volume and retraced with very low volume and now with higher volume is continuing the move.
Volume Profile-: Is used to identify important regions, support or resistance levels. When volumes are compared to historical levels, accumulation or distribution regions can be identified and we can enter before the up-move happens.
So in
COFORGE
when I put the TRADING-VIEW-PRO FIXED RANGE VOLUME PROFILE I can easily spot the important regions since the rally started.
Important Observations
1. Current volume of up-slope channel is comparable to historical accumulation volumes as we can see. So either current region is a distribution or accumulation.
2. To confirm we wait for a breakout above up-sloping channel. Which happened with high volume. Secondly current volume at price has more "green candle volume (blue)" and less "red candle volume (yellow)". So definitely it is an accumulation region and we should expect a big up-move.
MY APOLOGIES
Sorry for posting this a little late. But there is still plenty of space to enter
TARGET
Since the current volume levels at price is almost equivalent to previous accumulation level, so it makes sense to assume at least a move of magnitude equivalent to the previous rally. So I used Fib Extension for a min 100% target level.
This is a provisional target level, the move can be even more than that since there has been multiple accumulation in between as is apparent in the Volume Profile.
ENTRY
3583 was an important level, as per price action(strong rejection marking important resistance level). Entry can be taken at CMP or probable 1H timeframe close retracement towards 3583 level.
STOP-LOSS
A aggressive stop-loss could be the recent low ie 3205 level but a more conservative one could be 3042.
**STOP-LOSS should be trailed as per your strategy. One of the best is to trail with Moving Average in 1D timeframe with ATR( Average True Range ) as a buffer.
EXIT
It doesnt make sense to exit at or around target since it is at a all time high and we should hold on to the move as much possible. So following can be the bearish signals to exit.
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
**Whenever you want to use a BUFFER use ATR(14) Average True Range.
**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS ETC.
TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT.
**YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES
**ANY COMMENT OR QUESTION ON THE ANALYSIS WILL BE HIGHLY APPRECIATED.
**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.
COFORGE
Volume Profile-: Is used to identify important regions, support or resistance levels. When volumes are compared to historical levels, accumulation or distribution regions can be identified and we can enter before the up-move happens.
So in
COFORGE
when I put the TRADING-VIEW-PRO FIXED RANGE VOLUME PROFILE I can easily spot the important regions since the rally started. Important Observations
1. Current volume of up-slope channel is comparable to historical accumulation volumes as we can see. So either current region is a distribution or accumulation.
2. To confirm we wait for a breakout above up-sloping channel. Which happened with high volume. Secondly current volume at price has more "green candle volume (blue)" and less "red candle volume (yellow)". So definitely it is an accumulation region and we should expect a big up-move.
MY APOLOGIES
Sorry for posting this a little late. But there is still plenty of space to enter
TARGET
Since the current volume levels at price is almost equivalent to previous accumulation level, so it makes sense to assume at least a move of magnitude equivalent to the previous rally. So I used Fib Extension for a min 100% target level.
This is a provisional target level, the move can be even more than that since there has been multiple accumulation in between as is apparent in the Volume Profile.
ENTRY
3583 was an important level, as per price action(strong rejection marking important resistance level). Entry can be taken at CMP or probable 1H timeframe close retracement towards 3583 level.
STOP-LOSS
A aggressive stop-loss could be the recent low ie 3205 level but a more conservative one could be 3042.
**STOP-LOSS should be trailed as per your strategy. One of the best is to trail with Moving Average in 1D timeframe with ATR( Average True Range ) as a buffer.
EXIT
It doesnt make sense to exit at or around target since it is at a all time high and we should hold on to the move as much possible. So following can be the bearish signals to exit.
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
**Whenever you want to use a BUFFER use ATR(14) Average True Range.
**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS ETC.
TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT.
**YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES
**ANY COMMENT OR QUESTION ON THE ANALYSIS WILL BE HIGHLY APPRECIATED.
**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.
COFORGE