1. The market already gave 11% in the impulsive move and created a high. Obviously, the momentum was fading out.
2. If you recall my lecture on market structure, you already know that after the creation of a high, we must come down to create a new higher low. The market cannot keep making new highs without creating a higher low.
3. There was...
As soon as we see a breakout on the chart we form a basis ( or have a belief ) that the stock will burst and go upside.
We should not try to predict the market. Instead, we should wait and let the market tell whether the breakout is false or true.
You can crosscheck with other indicators. I personally use PRICE ACTION data i.e. after breakout the upper trend line...
Psychology and Behind the scenes stuff:
1. At the BO, there was a massive bullish candle with a very high volume. This took out the previous resistance level.
2. The retailers saw this opportunity because the price closed above the previous resistance. Hence, they entered Longs.
3. The BO was followed by a Doji and then a Bearish candle. This indicated no...
1. The price gets rejected from a level repeatedly and forms a major resistance.
2. There is an initial test of supply which absorbs some pending orders
3. The price finds a bottom and some sort of accumulation happens.
4. After the accumulation, the price tries to move back up to retest the resistance level.
5. A bull trap is confirmed when...
👑 Terms used if you don't know :
✣ An inverse head and shoulders also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of security meets the following characteristics: the price falls...
Bullish flags are a continuation pattern found in stocks with a strong uptrend. As can be observed, the pattern resembles a flag
on a pole. The vertical rise forms the pole and the following period of consolidation forms the flag. The flag can be a horizontal rectangle
but mostly angles down from the pole. The focus should be more on the underlying psychology...
OBEROIRLTY: Swing trade
Ascending Triangle Breakout
In Ascending triangle pattern the upper trendline is flat, while the lower line is rising.
This pattern indicates that buyers are more aggressive than sellers. It is considered a bullish pattern and is usually resolved with a breakout to the upside. The pattern is completed on a decisive close above the upper...
A breakout trade will work almost right away from the start, if the breakout happens with huge momentum and then you see Doji candles or hammer then there is a problem with follow-up. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish breakout needs good bullish candles, not Doji.
The above is the my style of looking into the opportunities in the triangle pattern. Only after good time spent on this pattern will make things easy for you to take this trades.
Always . .
Take a pattern, spend more time on it, when you get used to it, you will start fall in love with it, when you love it you know about it well !!! That's the magic.
In this chart,
Price is making a particular range and this is the example of range trading strategy.
We can take entry when price breaks the range and PRICE close above or below the Range.
I will make study so Trader can use and take profit from this Strategy.
TCS is near support zone and taking support firmly at 2600, sustaining this level could give breakout at upper trendline. however if it breaches 2600 it can close the gap created at 2530-2600. on lower time frame (1hr) it broke 21 EMA but at the end closed below 21 EMA. and made higher low.
We have always heard that resistance once broken turns into support . Just look at this stock doing it multiple times.
Everytime it breaks it comes back to retest existing resistance and goes for another run.It is doing this again.
A rejection candle or long wicks/shadows near the retest/support.
Hope it helps or adds any input in learning curve.
This strategy does not work 100% of the time, but it does offer a good risk reward ratio.
If the pattern occurs in the first 15 min, wait for about an hour and observe the price action, and take a trade only after the breakout. Taking a trade too early may result in your SL getting triggered too soon. You want to try and make it harder for the market to trigger...