The chart is self-explanatory. The main benefit of entering into a trade at the time of retesting the resistance area is that our stop loss becomes small at that point. And risk-reward ratio appears good there. Hope the interpretations will help some of you in your trading approach. As me-too learning from others. Wish you success.
Entry : 3550- 3570 Initial Target - ATH - 3800 ( Trail sl this target) Weakness below 3400
👑 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...
NSE:BAJAJ_AUTO Simple guide on how to trade breakouts from ( parallel channel ) trading range. This example illustrates how the parallel channel breakout ideally works out. Please try and spot stocks and index that are currently either trading in a range or about to breakout for trading opportunities, Keep plotting, keep learning and trade with confidence. ...
This chart reflects various aspects of technical analysis. Let's understand them 1. Price action perfectly shaping up for a move (Pink line reflecting behavior of price). 2. Price taking support at previous breakout levels(Resistance acting as support for the stock). 3. Price making a flag pattern too. (Draw a trendline below the already drawn one.) A trend...
* Retest of breakout * 61.80% Fib retracement
I believe that this month could decide a clear direction for us. This week it had a breakdown below 10700 support level and an important trendline (of course signs of bearishness). But the Friday's pullback was as strong as the breakdown. To my surprise there was no sustained reaction from 10700 and it managed to close above support. What Next? Scenario 1 : We...
We generally talk about breakdown and breakout confirmations. I have tried to present what confirmations actually are and how they are traded. Some traders use indicators for confirmations, but in this post i have discussed confirmations based on price action only. Same strategy can be used for breakouts. Notes on the chart. Hit like/comment for better...