1. Seems to be in re-accumulation 2. Moving in parallel channel 3. Constant manipulation of the lows 4. Swing failure pattern 5. Medium bullish divergence 6. Target: 2616, 2714, 2871
You are always advised to use an appropriate Risk-Reward ratio as per your strategy.
P.S:This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
What is meant by 'continuous manipulation of lows'?
johntradingwick
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@Minhaj_AK, It is a term I picked up while learning Wyckoff's theory. In simple words, the price is continuously pushed downwards to create a lower low and then revert back to the channel. This is done in order to take liquidity from the stop losses. Hence, at each low you can notice the formation of the hammer, engulfing candles because the stop losses are taken out. Hope that helps.
Minhaj_AK
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@johntradingwick, i must say....that's quite a catchy term you have coined :)
If for the sake of liquidity, the prices are intentionally manipulated to go low, it will definitely hit SL of many. In that case, how do you suggest placing a SL ?
johntradingwick
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@Minhaj_AK, The only way to protect your SL is to enter at an optimal time, that's it. In Wyckoff, that time is called "Spring". All the positions created before the spring will have their stops taken out by the institutions.
Minhaj_AK
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@johntradingwick, that's interesting. Could you please tell me the resources from where i can get more insight into Wyckoff's theory. Thx
johntradingwick
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@Minhaj_AK, Sorry for the late reply. You should only go for Wyckoff if you have good knowledge of other concepts. There are several sites dedicated to Wyckoff, just search on Google for Wyckoff theory and you will get a link for the stock charts website.