Hello guys!
This analysis is for learning how to trade TRAINGLE pattern breakout.
I've taken DIGISPICE TECHNOLOGIES for an example. Stock is in consolidation for 8 months. It is respecting both the trend lines as dinamic support(below) and resistance (above).
When this type of pattern forms stock gradually trades in a narrow range near the breakout and can give breakout either sides with a big candle and huge volume.

👉Qn.- Which side the stock will go?
Ans - Since the stock is trading above the 200 ma( orange line) so we can consider the stock in an uptrend. So there is a high probability that, it'll break the upper trendline. So we can take a chance with proper POSITION SIZING & RISK MANAGEMENT ( Read the full article below) at breakout.

👉 What should be the SL?
ANS- In this case we can consider the SL below the lower trendline or below the recent HL (higher low) of the trend.

👉Qn- What should be the target?
Ans- The 1st target should be the next resistance. Which is about 70%. RR (risk reward) will be 2.5.

👉 2nd Target will be the next resistance (117)
if it successfully breaks the 1st resistance. Here the profit % = 140% aprox & the RR is about 5, which is great.

I hope you've learned something from my analysis.
Like & Do comment i need any assistance.

👉This trade is only for educational purpose and not my recommendation.


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