Analysis for educational purposes only. I am not a registered analyst.
A Higher High Higher Low structure on price action is considered as an uptrend.
- In the daily chart, we see a breakout of previous Higher High.
- Wait for Higher High retest and enter somewhere close to it.
- Cannot expect a stock to test the exact same value.
- Set SL as previous HL or in cases where there are other lows close by, choose the lowest one.
- Calculate the possible loss assuming the stock hits SL
- If you are OK with the calculated loss, enter.
- Trail the SL at every new Higher Low.
- Wait for breakdown of a Higher Low OR Target
A Higher High Higher Low structure on price action is considered as an uptrend.
- In the daily chart, we see a breakout of previous Higher High.
- Wait for Higher High retest and enter somewhere close to it.
- Cannot expect a stock to test the exact same value.
- Set SL as previous HL or in cases where there are other lows close by, choose the lowest one.
- Calculate the possible loss assuming the stock hits SL
- If you are OK with the calculated loss, enter.
- Trail the SL at every new Higher Low.
- Wait for breakdown of a Higher Low OR Target
Trade active:
Target reached today 24th Jan. what next?
Possible options:
- exit fully
- exit partially
How to plan for exit?
- Is there another target nearby? Yes there is. Join previous HH in monthly chart.
- Do we see a breakout in another timeframe? Price is close to breakout in Monthly chart. If the wait till the month end is not risky, then possibly hold 2/3rd till either second target is reached or breakout fails.
- If the breakout fails or reaches second target, can close another 1/3rd position.
- Chart link will be updated below
Possible options:
- exit fully
- exit partially
How to plan for exit?
- Is there another target nearby? Yes there is. Join previous HH in monthly chart.
- Do we see a breakout in another timeframe? Price is close to breakout in Monthly chart. If the wait till the month end is not risky, then possibly hold 2/3rd till either second target is reached or breakout fails.
- If the breakout fails or reaches second target, can close another 1/3rd position.
- Chart link will be updated below
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