The stock has formed a beautiful Roof Pattern it gave false breakout today and came back. One can trade the stock by providing small Stop Loss high of today and look for a target of 140. Risk to reward ratio works out decent.
Order cancelled
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Since it is not coming below the pattern I would not consider it valid pattern now and look for somewhere else.
Praveenji, the first candle which is a long green candle and more than 50% of its body is below the horizontal base line of the triangle.Then how can we draw the horizontal line bisecting the candle? Is this
deviation is within the limits of the Roof Pattern?
praveen.bhatiya
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@drchandramohankk, Dear Dr Chandra to draw any line we need 2 points. I've marked the point and extended the lines on both sides that is the base. To trade this pattern one should short when it closes below the baseline which has not happened yet. I am betting more on a false breakout at this point. Thanks for your keen observation and interest.
deviation is within the limits of the Roof Pattern?