DalalStreetTrader

RELIANCE SYMMETRICAL TRIANGLE FORMATION

NSE:RELIANCE   RELIANCE INDS
A symmetrical triangle occurs when the up and down movements of an assets price are confined to a smaller and smaller area over time. A move up isn't quite as high as the last move up, and a move down doesn't quite reach as low as the last move down. The price moves are creating lower swing highs and lower swing lows.

Connecting the swing highs with a trendline and the swing lows with a trendline create a symmetric triangle where the two trendlines are moving towards each other. A triangle can be drawn once two swing highs and two swing lows can be connected with a trendline. Since the price may move up and down in a triangle pattern several times, traders often wait for the price to form three swing highs or lows before drawing the trendlines .

Applied in the real-world, most triangles can be drawn in slightly different ways. For example, figure one shows a number of ways various traders may have drawn a triangle pattern on this particular one-minute chart.

The breakout strategy is to buy when the price of an asset moves above the upper trendline of a triangle, or short sell (sell the asset before it hits a lower price, intending to buy it back even lower) when the price of an asset drops below the lower trendline of the triangle.

LEVELS MENTIONED ON CHART FOR THIS TRADE.
Comment: TARGET REACHED

Comments

I think that Reliance should again come down and touch the support trendline once more before breaking out of the long term flag. This shall ensure that the range narrows down and the breakout from this narrow range will have good confirmation too..Let's see what happens..
+1 Reply
DalalStreetTrader tksthathachari
@tksthathachari, agree :)
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Good analysis, liked the purple color :)
+1 Reply
DalalStreetTrader InvestPro_India
@InvestPro_India, thankyou :)
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Great analysis
+1 Reply
@Indrajit08, thankyou 🙏🏻
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Real BO incoming!
+1 Reply
@KuberPriya, 💸💸
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poor analysis,reliance dosen't have a catalyst to push price any further, that's why it wasn't backed by institutional buyers. and stop drawing irrelevant lines to make breakout
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@BlondeMight, you're so mean 🥺😒😒
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