A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u"
A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long.
3M India is having good support at level of Rs. 24190, stock is reversing at this level, supported by bullish reversal candle, Bullish Engulfing on previous close. Stock gave closing of Rs. 24733.65, can give upside move up to Rs. 27150 in a month, with stop loss of Rs. 23880.
Underlying logic:
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...
I have noticed an RSI VS PRICE Divergence on VI chart. Here the price is constant, whereas RSI has declined over the same period. Feel free to comment with your understanding of the same. How will the price reacts because of this.
Myth: If the price approaches a level repeatedly, and gets rejected from it, this means that the level is very strong.
Reality: After each touch, the level becomes weaker and weaker due to the absorption of the residual orders.
Underlying concept:
1. Whenever the price keeps approaching a certain level, there are pending sell orders that are waiting to be...
Hi guys, I have finally completed the thread on Fibonacci (Though it took longer than usual). I have tried with the best of my little knowledge to create this thread. This has everything you need to know about Fibonacci retracement and Fibonacci extension. Also, if the thread is free that doesn't mean I have compromised with the quality. All you have to do is just...
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...
Hi everyone, I have tried to provide a holistic view of all the market cycles of Nifty from 2001-2021. This post may or may not make sense, hence just read without any predefined notion. This post took me a few days to get rolling, so please show some appreciation.
We will be talking about the following parameters:
1. Corrections after each cycle
2. Price...
Underlying logic:
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...
A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle.
Bearish Engulfing Potential Sell Signal:
Three ways for selling using the Bearish Engulfing Pattern from most...
A lot of retailers may have gotten caught in this fake breakout in TCS. I provided that rough path (which I anticipated it would follow) in my original idea because I believed the conditions were not right for a breakout at the moment. The majority of the time, we cannot avoid getting trapped in fake breakouts. But in the recent case of TCS, the fakeout could have...
The Third Video on Education series - Engage - The Trade Setup
The Reversal Pattern that I have discuss is the Outside reversal setup, which is a pattern that can spotlight some of the best reversal opportunities in the market.
studied from Book Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market
www.amazon.in
Happy learning.
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What is a Cup and Handle pattern?
• The pattern resembles a cup with a handle, where the cup is in the shape of a "u" and the handle has a slight downward drift.
• This drop, or “handle” is meant to signal a buying opportunity. When this part of the price formation is over, the stock may reverse the course and reach new highs.
• It is a bullish continuation...
