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 NSE:COFORGE when I put the TRADING-VIEW-PRO FIXED RANGE I can easily spot the important regions since the rally started.
1. Current 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 . Secondly current at price has more "green candle (blue)" and less "red candle (yellow)". So definitely it is an accumulation region and we should expect a big up-move.
Sorry for posting this a little late. But there is still plenty of space to enter
Since the current 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 .
3583 was an important level, as per price action(strong rejection marking important ). Entry can be taken at CMP or probable 1H timeframe close retracement towards 3583 level.
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( ) as a buffer.
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 signals to exit.
1. If there is pattern in 1D timeframe, stop-loss can be trailed to a nearby .(Like Candle Low)
2. If there is 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) .
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