Triangles can be best described as horizontal trading patterns. At the start of its formation, the triangle is at its widest point. As the market continues to trade in a sideways pattern, the range of trading narrows, and the point of the triangle is formed. In its simplest form, the triangle shows losing interest in an issue, both from the buy-side as well as the sell-side: the supply line diminishes to meet the demand.
Think of the lower line of the triangle, or lower trendline, as the demand line, which represents support on the chart. At this point, the buyers of the issue outpace the sellers, and the stock's price begins to rise. The supply line is the top line of the triangle and represents the overbought side of the market when investors are going out taking profits with them.
2) About the entry : So far, we have seen two triangle patterns: one from an uptrend and bullish market move and one from a downtrend with a decidedly bearish look. Symmetrical triangles, on the other hand, are thought of as continuation patterns developed in markets that are, for the most part, aimless in direction. The market seems listless in its direction. The supply and demand, therefore, seem to be one and the same.
During this period of indecision, the highs and the lows seem to come together at the point of the triangle with virtually no significant volume. Investors just don't know what position to take.
However, when the investors do figure out which way to take the issue, it heads north or south with big volume in comparison to that of the indecisive days and/or weeks leading up to the breakout. The breakout generally occurs in the direction of the existing trend. But, if you are looking for an entry point following a symmetrical triangle, jump into the fray at the breakout point.
3) LEVELS: STRONG close above 130 on 30min and sustaining there for another 30 min that will make a close of 1hr candle will give good momentum for the stock. Stop-loss can be set at 125.45 as it is a small swing low also will make the stock come back to the pattern, Targets of 140 should be eyed on
Bro.. really love every single analysis of yours. For newbie like me in the market, your video analysis is extremely helpful. I see other ideas where they have posted SL, Target and entry point. But it will be a pic instead of a video. I won't be able to understand the analysis completely being someone new to the market. Your videos clearly show how to analyse across different timeframes and what is your thought process behind the idea. I am a big follower of your ideas. You are doing such a great work simplifying everything for us. Big thanks for all that you do.
Averoy_Apoorv_Analysis
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@Bharath_Trades, Thanks a lot bro :) really thankful to you guys for the support
mahajanjee
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but closed inside triangle pattern, wait till closing above triangle pattern.
@Averoy_Apoorv_Analysis Yes man. it closed at 126 hence no trade initiated yet. Just wait iting to close at 130/129 to initiate the trade. Could you please analyse ICICI bank brother?
what's the difference between flag pole and triangle pattern? and is target for flag pole pattern is set from the breakout point to the length of pole? because in that case the target could be near 170.
Averoy_Apoorv_Analysis
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@mthakur004, Flag, and the pole is nothing but a world for a big move then consolidation in stock, so if you find a stock moved 10% or 20% then in a range of 2 to 5% for some days or hours, you might get a good pattern in that consolidation as a shape of a triangle ( Bull vs bears type ) or parallel consolidation this will be your flag. Data regarding the length is not that accurate in real markets so real-time targets ( resistances ) cane be considered as good targets