1. FOR WHOM 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.
Using one can identify probable accumulation or distribution regions by comparing the historical at Price and current at Price.
2. If the current is low, its mostly a pause before the trend resumes
3. If the current 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 is called Point of Control. This is the level where max of transactions have taken place.
GRASIM has been rallying since a long while. With a hell lot of green it has been rising. Recently it took a pause to consolidate.
Now a consolidation can be either accumulation or distribution.
We observe the recent consolidation to be the highest since the rally began. So it is either accumulation or distribution.
But I would bet on accumulation because-: (refer to point 2 in )
1. The consolidation happened in an up-sloping, triangular manner i:e higher lows and faced resistance at the same 1500 level 3 times making the strong.
2. 3 times tested resistance line was broken with nice . Moreover each time it retraced it was on low .
This gives us confirmation of an accumulation region along with breakout
Now the accumulation has a lot of , the highest since the rally started. So it makes sense to assume the current expected rally should be at least of that maginitude.
More the accumulation, greater the strength, so the more the move.
So I used a Fib Extension from the recent accumulation region and a target of 100%(at least)
Confirmatory breakout has happened but price is still there giving us space and favourable RR ratio to enter. So entry at CMP .
Since we are expecting a nice uptrend to continue with target high enough and again as it is swing trade, a conservative stop-loss will be better
Since 1260 is a nice support levels and just above the previous small, minute pause during 2Feb - 1Mar 2021, so i would prefer the stop-loss around that level.
Keep trailing stop-loss as per you strategy. Using Moving Averages with ATR( ) as buffer is one of the ways.
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 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
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THere are few youtube videos as well , just type Volume Profile and you will get those.
Once you are done with those, message me if you want more
Thanks again - will connect with you again once I am done.
since will grasim reach 1550 within a week?
should we consider today fall as some fissy fall or any real thing to be happen??
Note-: Do check Fib Time Zones , to some extent they help determine the time factor
If you have suggestions on time factor do comment