Pure price action Swing trade opportunity in VIDHI SPECIALTY
VIDHI SPECIALTY has gone 10x since the March 2020 covid crash and still rising.
The chart has formed an inverse head and shoulder pattern on the daily timeframe.
A strong green candle with Huge volumes broke out of the resistance zone providing a good swing trade opportunity.
Huge volumes and big green candles usually attract little profit-booking, which should bring the prices back to the breakout point.
Risky traders can take a trade in the next trading session and put a stop loss below the support marked on the chart or below the breakout candle.
The key to making consistent profits in trading is not just identifying a pattern and taking a trade right away.
The obvious is not always obvious.
Protect your capital. It's okay to lose an opportunity than take a loss.
I would deploy a trade if the price retraces & takes support near the breakout zone.
This filters out the fake breakouts (fakeouts). This also increases the chances of losing out on the trade if the price does not retrace, but I'm okay with moving on to the next opportunity.
Stop-loss : Slightly below the strong support.
Target : The depth of the Head & Shoulder pattern, measured from the breakout point.
Risk/Reward : 1:3
Disclaimer:
This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor.
Sharing my analysis and thoughts for a stronger and healthier community. Cheers
The chart has formed an inverse head and shoulder pattern on the daily timeframe.
A strong green candle with Huge volumes broke out of the resistance zone providing a good swing trade opportunity.
Huge volumes and big green candles usually attract little profit-booking, which should bring the prices back to the breakout point.
Risky traders can take a trade in the next trading session and put a stop loss below the support marked on the chart or below the breakout candle.
The key to making consistent profits in trading is not just identifying a pattern and taking a trade right away.
The obvious is not always obvious.
Protect your capital. It's okay to lose an opportunity than take a loss.
I would deploy a trade if the price retraces & takes support near the breakout zone.
This filters out the fake breakouts (fakeouts). This also increases the chances of losing out on the trade if the price does not retrace, but I'm okay with moving on to the next opportunity.
Stop-loss : Slightly below the strong support.
Target : The depth of the Head & Shoulder pattern, measured from the breakout point.
Risk/Reward : 1:3
Disclaimer:
This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor.
Sharing my analysis and thoughts for a stronger and healthier community. Cheers
Trade active
Vidhi did not retest the breakout, Instead, it made a flag & pennant pattern. This pattern is formed when a steep rise is followed by a consolidation in a triangle.Notice that before the breakout, Volumes were muted during the triangle formation. This is a perfect textbook example.
This idea is for swing trade. We are using a 30min. timeframe only to find an entry point. I will hold this either till my swing target is reached or SL is hit.
Buy at current levels
SL - 472.9
Target - 590
Note
SL hit. the pole & pennant pattern failed, but the original idea is active and the price took support at the neckline. The price is in the buying range.Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.