Perfect example of DOUBLE BOTTOM With DIVERGENCENSE:VOLTAS
Double bottom is always a perfect pattern for LONG ENTRY.
But I prefer to add some more factors which increases my probability to achieve the target.
In this analysis tutorial, we will learn that.
* After falling wedge pattern breakdown Stock momentum is exhaust near a good Support.
- Never Entered in ONE SIDED BREAKDOWN or BREAKOUT. Wait for the Next GOOD SUPPORT - RESISTANCE, Because one sided move Creates a Doubt( maybe its a TRAP for a RETAIL TRADER like us).
- ONE SIDED BO-BD can be a FAKE BO-BD ( In Mostly cases )
- And incase, If it's not a Fakeout - Fakedown, But a genuine one and we missed that - DON'T PANIC - Never entered in FOMO because this can spoil our RR.
- THIS STRATEGY IS A SOLUTION FOR ALL THE ABOVE SITUATIONS.
* And at that support( IN BIGGER TIME FRAME) I Found BULLISH DIVERGENCE.
- Divergence is basically a manipulation by a big players.
- In Bullish divergence with the help of some OSCILATTORS we see PRICE IS DECREASING but AVERAGE PRICE or STRENGTH or VOLUME is INCREASING. - {Opposite in BEARISH DIVERGENCE}
- But if there is not any SUPPORT - RESISTANCE - - - - - IGNORE THAT AND NEVER ENTER.
- Because WE FOLLOW ONLY&ONLY PRICE ACTION, Indicators is secondary.
- And basic principle of PRICE ACTION is - NEVER ENTERD WITHOUT A SUPPORT RESTISTANCE ZONE OR TRENDLINE SUPPPORT OR ZONE.
* When this stock Follows all rules of BULLISH DIVERGENCE I took a LONG ENTRY.
- COMMENT if you wants to know all the RULES of DIVERGENCE.
* Now chart pattern shows a signal of UPSIDE MOVE and our Divergence setup gives us a confirmation of that SO I ENTERED and ACHIEVED THE TARGET
I hope this is helpful for beginners and a good revision for a pro players.
DIVYA BIHARI DAS this side.
THANKYOU SO MUCH.
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