It is been observed on hourly chart, that the price action breaks below descending triangle pattern, indicating a bearish move to support levels ahead.
Target: 740 Stoploss: 770
Trade active
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It is active until the price action breaks and closes above 770 levels on daily chart. Regards
Trade active
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Today, It did not close above 770 stoploss, that makes this trade valid for tomorrow as well. Apologies in case any confusion. Regards.
Trade closed: stop reached
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Making a new high
Comment
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Learning: Trade after closing confirmation on the said time chart.
i am safe on this ..because until you say "trade active" i don't even consider entering even if the price is there :) thanks for being an excellent guidance here.
This one is going up in the opposite direction.Worrisome.
NeeteshJain
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@justDSingh, Just maintain your stoploss and it shall take care by itself. Regards
Prince_Kanodia
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Hi Nitesh,
I am new to this platform. I was going through all of your recent charts. Good work. Keep it up!!
Profit and losses are part of the game, But when one respects the game there is most of the WIN's favoring them.
In this chart, I noticed one thing, Shouldn't we wait for one or two candle after first break just to see whether the line supports or not. Two three consecutive bounce might give an idea as well as might form some pattern. However, there is always to learn something. I find ur charts and explanations very good. Will look forward for some trades.
Warm Regards,
Prince
NeeteshJain
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@Prince_Kanodia, Sure, I wish it adds to your trading experience. I appreciate your generous words, Regards
kishore90raj
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Neethesh: Snapshot when you wrote the article totally puts in bear courtrs. However, given how it looks now, didn't close below the lower horizaontal line (bearish) & managed to close above the slanting line (bullish), would it be fair to call it bullish. End of the day, triangle pattern looks for momentum after compression for a while. Also, how did you arrive at the SL of 770
Keep continuing your excellent job.. Cheers bro!!
NeeteshJain
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@kishore90raj, Descending Triangle indicates Lower Highs, where sellers control the price action as they resist buyers to take price up but in case buyers become stronger and put a higher high from the previous high then it is said to be a change in trend due to buyers dominance. Therefore, I have placed a close above 770 as a stoploss as once it is achieved and closed above then it shall be confirmed that buyers shall take up the price further up.
Today, the price action did reach 770 levels but unable to close above it which indicates Sellers are still in dominance over price action. It is the only reason I have made this trade active till now.
I appreciate your technical question and wish you the best. Regards
kishore90raj
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@NeeteshJain, Very convincing answer. I liked that mix of dow theory on triangle pattern. That was a new learning. Thanks