It's a descending triangle so why would it breakout? It should breakdown right? I mean every time high is lower than previous high, sellers are winning so it should breakdown. I just started to learn Technical Analysis, plz explain to me what's really happening here.
nikky2201
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@ayushchothe, Yes your analysis is correct. The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern but there are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. So Descending Triangle can be Reversal (Both in Up trend as wells as Down trend) and Continuation (Both in Up trend as wells as Down trend). Also in 70 % of cases it is taken as BEARISH . Why I considered it will be continuation of uptrend bcoz SOTL is buying back stock @ 1400. If they are buying at such premium price and decreasing their shareholding ratios then definitely this will be taken as UP trend, Isn't? Still I am not recommending any action. I just shared my analysis for education purpose. Check my analysis on Balaji Amines, Kanchi, Mayur Uniquoters just few days ago and see how profitable those strategies were if someone had gone for it. Happy Learning & Trading!
Mohammed_Bilal
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@nikky2201 great Study. I am beginner. I would like to learn how to understand all these studies.
nikky2201
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@Mohammed_Bilal, Thanks Bilal! Good way to study is by watching what others are doing. Also, You can google different chart patterns there are many good sites that have explained these complex things nicely.
nikky2201
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Today was last day for SOTL Buy Back offer @ 1400 on my trading account for those who held it as on 5th March 2021.
Watch out for Breakout Confirmation: Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume, especially on upside breakouts.
Note: This is my analysis. Please use your own analysis and wisdom to take entry. I do not recommend anything.
gadap
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@nikky2201, High volume os lacked .... donot enter ...+ 1078 is the breakout if it occurs with high volume and if sustains stay for 2nd rally ....review on daily candle...
nikky2201
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@gadap, Yes, You are right! It failed 3% break and 3 days time test, I am Risk Taker I have already entered.
Alhad
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@nikky2201 check the idea I had posted on 30th Dec.