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Accumulation

Hindustan Unilever : AnalysisHindustan Unilever is at crucial level of accumulation. Breaking to either side can give good target's. Over shooting box levels is a prominant posibility. These levels have multiple support: 1) Heavy volume support since 20th of sep. 2) lower price rejection. 3)Holding Weekly PP levels. 4) Bull run of Nifty. Safe entry would be above 2725. which can give possible target of 2850. Breakdown of box levels can possibly give target of 2500 levels. Possibility of either side breakout is good and targets are good as well. PS: Trade as per your risk appetite and follow RR Ratio. Mind well no body is Pro in the market.
NSE:HINDUNILVR
by Umang_Sharma
Wyckoffian Patterns that occurs in Accumulation PhaseWyckoffian Patterns that occurs in Accumulation Phase 1. Initial Sell off in panic mode 2. Preliminary support has been identified, where the big institutions and smart money players try and take bullish positions after a strong sell off 3.Automatic rally from the preliminary support has occurred 4. Secondary test of support has occurred more than twice (although not at same price point around the preliminary support) 5. There was a show of strength with increase in price and volume on the same day Note:- No false break out has occurred at lower levels in this particular period. Whereas in some other cases it might occur and one can see spring action at the support level. One can take long positions based on their RRR. Any suggestions / corrections are welcome.
NSE:ADANIPORTSLong
by BuckyBarnes
Indian Bank- Good Accumulation Hello All, Yesterday I posted about how I am able to see a upside in PSU BANKS Index (I have attached the link of that article below). I asked you all to reflect on it and prepare a list of the stocks which can be the early leaders in this sector. I personally find Indian Bank's setup really convincing. Stock is forming a VCP pattern on the Weekly chart and looks ready to explode. A lot of accumulation can be seen during this period (just look at the height of volume bars). The quantity delivered during the high volume days is also good. Since it's a weekly chart the SL should be a bit long but so is the Target. SL can be kept around previous pull back level of around 120 while the first target expectation can be around 200. Happy Trading! :)
NSE:INDIANBLong
by Ankit_Oberoi
2
Indusind Bank - SIP modeIndusind Bank - Nice accumulation taking place in 970-1060 price band. Looks like a good time to accumulate on SIP basis. Once the share crosses 1060, we can target for 1100/1180. Bulk buying should be avoided till 1160 level is breached on daily closing. Shorting 1100 CE if you have adequate holdings is also advisable, however do this only if you have experience with covered calls. Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
NSE:INDUSINDBKLong
by Market-Thalaivaa
Refex Ind - 2yr C&H BUY GUIDANCE: Never buy before 3PM . I have been burnt many times over. Try to buy between 3:15 - 3:30PM, later the better. SL: Depending on your risk appetite: Below Weekly BO Candle / Below Daily BO Candle / 50% of Weekly BO candle / Below 20DMA TGT: After a 10-15%+ vertical move, breakdown of 20DMA (on a daily close basis) SELL GUIDANCE: Selling in Profit: Sell earlier in the session when the prices are higher, around 11AM. Selling at SL: Give your stock a chance to recover by end of session. If it doesn't recover, sell anywhere between 3:00 - 3:30PM. Note: I reserve the right to be wrong. DISCLAIMER: I am not a SEBI registered analyst. Please consult your financial advisor before investing.
NSE:REFEXLong
by raavigeorgian
#CC BANCO INDIA- Inv Head and ShoulderInverted head and Shoulder Pattern on the weekly chart. The stock has been taking resistance at 2 major trend lines. Going forward also, these resistances will be profit booking areas. A huge accumulation of smart money + good results suggests this stock can go big. Q1 FY2021-22 Q4 FY20-21 Total Income ₹ 508.77 crs ₹ 445.82 crs Up 14.12% Net Profit ₹ 45.90 crs ₹ 18.39 crs Up 149.59% EPS ₹ 6.42 ₹ 2.57 Up 149.81% Q1 FY2021-22 Q1 FY2020-21 Total Income ₹ 508.77 crs ₹ 275.60 crs Up 84.6% Net Profit ₹ 45.90 crs ₹ 17.56 crs Up 161.39% EPS ₹ 6.42 ₹ 2.46 Up 160.98%
NSE:BANCOINDIALong
by CannySunny
TREND-LINE-CHANNEL-BREAKOUT-ACCUMULATION-1WSo the price action concept is: had been falling till Mar 2020 since 2017. since 2017 we saw a steady fall till Mar 2020. 1. Since Mar 2020 , it kind of went into a consolidation between 63 and 31 levels. 2. Now let's look at the structure. The entire fall can be condensed into a downsloping channel. There are two upper trend lines . Both have been tested at least 3 times. Currently both these trend lines have been broken. Secondly, we see an accumulation after fall which seems like the consolidation before high momentum breakout. 3. Within the accumulation we can see higher lows and same high, which means the 63 level has been tested several times, once that level breaks an upmove can start. Now let's look at the Volume Aspect-: ---> 1. Looking at the Volume Profile , we find the volume near 63-31 level is extremely high as compared to historical volume at previous price levels. Secondly, all the green (buying volume ) is very high and red(sell volume ) is very low. Which further confirms this as an accumulation region. i:e During buy volume=high, then price retraces with low volume and then again high volume buy-----> this forms a closed accumulation region. 2. Since the historical volume is low, There is very less barrier or resistance, which means once this breaks out, the momentum can be expected to be smooth and STRONG. ENTRY-: Clearly the 61 level is very important. That is the resistance of the accumulation region. So a confirmatory breakout above 61 level will signal entry. TARGET WITH LOGIC-: The tentative target level is all time high because since the volume is very low, but present volume is relatively stronger, any breakout can be assumed to be very strong and long-lasting. i:e it could easily cross the price levels. Nonetheless the imp levels to watch are 108, 140 and 197(all-time-high). EXIT-: Since exiting at target is ideal, we need to keep trailing stop-loss conservatively. We can use 1. Lows of candles 2. Moving Averages 3. S/R levels If stop-loss is hit----> exit. Else hold on till the target level. STOP-LOSS-: 31 is the consolidation support level. Since our target is optimistic we can choose 31 as the conservative stop-loss level. **ALL UPDATES ON ENTRY WILL BE POSTED HERE. TRAILING STOP-LOSS, EXIT AND CHANGES IN TARGET LEVELS AND ANY OTHER UPDATES WILL BE POSTED HERE** **COMMENT YOUR SUGGESTIONS** **LET ME KNOW IF VIDEO IS BETTER OR IF THIS WAS SHORT OR LONG POST** **IF YOU LIKE THE POST GIVE A THUMBS UP AND FOLLOW THE POST AND MY ACCOUNT FOR UPDATES**
NSE:HSCLLong
by VPA_TRADER
2
CHANNEL-TRENDLINE-ACCUMULATION-BREAKOUT-1W/1MSo the concept is: NSE:UFO had been falling till Mar 2020 since 2015. The fall was steady during 2015-2018. But since 2018 we saw a relatively rapid fall till Mar 2020. Since Mar 2020 , it kind of went into a consolidation between 116 and 60 levels. Now let's look at the structure. The entire fall can be condensed into a downsloping channel. There are two upper trend lines. Both have been tested at least 3 times. Currently both these trend lines have been broken. Secondly, we see an accumulation after fall which seems like the consolidation before high momentum breakout. Looking at the Volume Profile, we find the volume near 116-60 level is extremely high as compared to historical volume at previous price levels. Secondly, all the green (buying volume) is very high and red(sell volume) is very low. Which further confirms this as an accumulation region. i:e During buy volume=high, then price retraces with low volume and then again high volume buy-----> this forms a closed accumulation region. Since the historical volume is low, There is very less barrier or resistance, which means once this breaks out, the momentum can be expected to be smooth and high. ENTRY-: Whether this really will be an accumulation will be confirmed by the breakout direction. A daily close breakout above 116 level will confirm. So entry at around 116, nevertheless, the entry bar should be green and close above 116. TARGET AND Exit-: Since the historical volume is low, it does make sense to assume that when the stock price moves, it can easily pass through without much resistance. Imp Level-: 300 and 500 (Since these were historical consolidation levels) So for now the target is all time high. But I would watch near 300 and 500, will trail my stop-loss and if hit, will exit. STOP-LOSS-: Since the consolidation was within 60, so stop-loss can be set around 60 level with some buffer using ATR(Average True Range) NSE:UFO **ALL UPDATES ON ENTRY WILL BE POSTED HERE. TRAILING STOP-LOSS, EXIT AND CHANGES IN TARGET LEVELS AND ANY OTHER UPDATES WILL BE POSTED HERE** **COMMENT YOUR SUGGESTIONS** **LET ME KNOW IF VIDEO IS BETTER OR IF THIS WAS SHORT OR LONG POST** **IF YOU LIKE THE POST GIVE A THUMBS UP AND FOLLOW THE POST AND MY ACCOUNT FOR UPDATES** **WILL SOON COME OUT WITH A EDUCATIONAL POST ON VOLUME PROFILE**
NSE:UFOLong
by VPA_TRADER
CONSOLIDATION-ACCUMULATION-BREAKOUT-PRICE-ACTION-VOLUME-PROFILEDisclaimer-: 1. FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED. 2. Do ask your questions in the comments if any. Volume Profile-: Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price. 2. If the current volume is low, its mostly a pause before the trend resumes 3. If the current volume is higher or equivalent to historical levels then either the trend will resume or it may reverse. If it resumes then we have more strength in trend due to more accumulation. So a breakout/breakdown will confirm in this case OBSERVATION-: Previously stock rallied rapidly after years of consolidation. Now we can see a significant consolidation happening where buying volume (blue) is greater than selling volume (yellow) 1. Moreover the current region volume has highest volume since the previous rally started. Definitely another round of accumulation is taking place. 2. So breakout above 815 will confirm and uptrend may resume. 3. Note the last breakout had low volume and RSI>80 suggesting it was a fail breakout. But now RSI <70 and volume has increased. So this time breakout might not fail ENTRY-: Above 840 confirmatory breakout STOP_LOSS Around the support of consolidation 604. TARGET-: Due to more accumulation the expected uptrend could be more than the previous rally. So 168% Fib-Ext Target. EXIT Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep conservatively trailing stop-loss. Following can be used as exit signals or bearishness signals. 1. If there is bearish candlestick pattern in 1W timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low) 2. If there is RSI Divergence in 1W timeframe, better to exit at close of 1W since afterwards there can be long consolidation or reversal. 3. If the trailing stop-loss is hit, please exit **IF YOU LIKE MY ANALYSIS, KINDLY GIVE A THUMBS-UP AND SHARE IT IF POSSIBLE, HELPS A LOT :) **I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC. TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO FOLLOW THE POST AND MY ACCOUNT. **YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES **ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED. NSE:AARTIDRUGS
NSE:AARTIDRUGSLong
by VPA_TRADER
5
IOC LONG-TERM BET, PRICE-ACTION,VOLUME PROFILE 1WDisclaimer-: 1. Long-Term Bets can be solely made from technical analysis if done correctly. Nonetheless this can be used in combination with Fundamental Analysis. So readers feel free to comment fundamental ideas if any, either in support of long or short, both will be highly appreciated. 2. **FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED. 3. Do ask your questions in the comments if any. Firstly During the violet region IOC went up. Since this was a smooth up-move with almost no sideways region in-between the move until it reached the all time high 224 level. After which it stayed for a prolonged sideways (distribution) and then fell smoothly but very significantly for a long time. Volume Profile -: can be used to identify potential support and resistance lines. So by using TRADINGVIEW PRO FIXED RANGE VOLUME PROFILE. I tried to identify all the important levels (resistance) while the stock was falling. Moreover when volume of historical price levels is compared to current ones we can identify probable accumulation or distribution regions and enter before the big move happens. IMPORTANT OBSERVATIONS 1. Current Volume is very high compared to previous volume when the stock was falling. This signifies current region is important and breakout from this region will give a strong up-move. Moreover current movement is in the form of up-sloping channel so definitely an accumulation is taking place. 2. Above 108 level the volume at prices is relatively low which means there are insignificant or weak resistance levels. That means once NSE:IOC breaks out of 108 or 148 level we should expect a strong rally with less and weak obstacles(resistance). 3. We need to consider the volume from only 24Apr-17 to 9Mar-20 because thats the time when stock was falling. TARGET WITH LOGIC 1. Since the all the time high level, 224-230, stock has been falling with very low volume . While now the volume of accumulation is too high, so there is a high chance it can reach the all-time high. Moreover it might even go more than that, but it depends what happens after the breakout. ENTRY 1. Entry above 108 level at CMP is good enough since 108 was one of the resistance levels. But in this case stop-loss should be placed conservatively at around 71 level. Since it is a long-term bet, placing tight stop-loss is like deliberately inviting failure. So a conservative and wide stop-loss will be better. 2. Another way is to enter after 140/148 level breakout for those who want extra confirmation. 3. Third and always the best way is position sizing. Enter partially now and add more with confirmation. *STOP-LOSS should be trailed as per your strategy. One of the best is to trail with Moving Average in 1D timeframe with ATR( Average True Range ) as a buffer. EXIT Sometimes we have to exit before target is reached if there is bearishness. Following can be the clues of bearishness-: 1. If there is bearish candlestick pattern in 1W timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low) 2. If there is RSI Divergence in 1W timeframe, better to exit at close of 1W since afterwards there can be long consolidation or reversal. 3. If the trailing stop-loss is hit, please exit **I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS ETC. TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT. **YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES **ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED. NSE:IOC
NSE:IOCLong
by VPA_TRADER
SRTRANSFIN ACCUMULATION 1D PRICE-ACTION-VOLUME-PROFILEDisclaimer -: 1. FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED. 2. Do ask your questions in the comments if any. NSE:SRTRANSFIN used to consolidate for a very very long time between 700 and 1300. After the rally since last year we can see currently its in a sideways region. This could be accumulation or distribution. We are not sure yet. But chances are high it is a small pause and a small accumulation region. Nonetheless confirmation is absolutely essential. 1500 and 1265 are important levels within which the sideways region is currently in. Breakout with high buying(green) volume will confirm accumulation and the opposite could signal possible distribution. Volume Profile -: ACCUMULATION REGION: Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price. 2. If the current volume is low, its mostly a pause before the trend resumes 3. If the current volume is higher or equivalent to historical levels then either the trend will resume or it may reverse. If it resumes then we have more strength in trend due to more accumulation. So a breakout/breakdown will confirm in this case IMPORTANT OBSERVATIONS 1. From 17Mar-20 to 30Oct-20 A Nice accumulation took place in the rectangular region with ample of volume. 2. Then rally happened with in between small pause where accumulation happened since in those small pause green volume was more than red volume (more buying than selling). 3. Now its in sideways but with very low volume compared to historical accumulation. So there is a high chance that its a brief pause and soon it will breakout and resume the trend. TARGET WITH LOGIC Mark the brief pause that happened between 22nd Nov and 23rd Dec (2020). The volume at that level is comparable to the volume at current level. Two things can happen 1. It breaks out with this amount of volume. In this case, it makes sense to assume a rally to be little more than the rally since 23rd Dec 2020 level since the accumulation volumes are almost same. So i used a Fib Extension from 23rd Dec 2020 and marked 168% as target level. 2. It continues in this region for a long time. Then afterwards if it breaks out we have to consider rally to be much longer because the accumulation now is much stronger. I will update target level with image if that happens Entry Wait for a breakout above 1537 level with high volume, 1D, closing at 320PM and then take position. I will update here before or during possible breakout. You may use breakout above 1537 + ATR(Average True Range) for additional confirmation. -> The best way to enter would be to partially after breakout and the add after (throwback + continuation). i will update when addition can be done. STOPLOSS Best to place stop-loss at or below 1276 for conservative approach. Then trail as per your strategy or best use MA in 1H or 1D timeframe with ATR Buffer. EXIT Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep conservatively trailing stop-loss. Following can be used as exit signals or bearishness signals. 1. If there is bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low) 2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal. 3. If the trailing stop-loss is hit, please exit Note-: This analysis is for NSE:SRTRANSFIN to be put in watchlist not immediately taken position in. **I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC. TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT. **YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES **ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED. NSE:SRTRANSFIN
SLong
by VPA_TRADER
ACCUMULATION-CHANNEL-BREAKOUT-UPMOVE-VOLUME-PROFILE-1D-1WClearly we can see the volume profile and the accumulation regions. During Mar-Apr-2020, a nice accumulation happened and then a nice momentum of upmove. 1. Now again a consolidation region since Feb-2021 has broken out of 830 price resistance level. 2. Moreover in the recent price action we can see a small upchannel, whose upper-trend line has also been broken. 3. The volume in this consolidation is similar to the previous accumulation, + breakout has given confirmation about the impending up-move. Target-: This has been determined which the help of Fib. Extension tools. The origin being the accumulation during Mar-Apr 2020 and current consolidation as the retracement region(other leg of Fib Extension) Stop-loss-: Clearly the support of the consolidation region can be used as stop-loss. RR ratio is good enough and Stop-loss is not that wide. NSE:TATACHEM **Followers let me know if this post was too short compared to my previous ones. Please suggest if I should add more or if this is sufficient** **Sorry for the gap and delay in posts**
NSE:TATACHEMLong
by VPA_TRADER
2
MINDTREE, TRENDLINE BREAKOUT, PRICE-ACTION VOLUME-PROFILE,Disclaimer -: 1. FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED. 2. Do ask your questions in the comments if any. Volume Profile -: Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price. 2. If the current volume is low, its mostly a pause before the trend resumes 3. If the current volume is higher or equivalent to historical levels then either the trend will resume or it may reverse. If it resumes then we have more strength in trend due to more accumulation. So a breakout/breakdown will confirm in this case Firstly Mindtree has been rallying nicely with 1-2 nice accumulation regions in between. Recently there was a pause with up-sloping trend lines i:e higher highs and lows. It has just given breakout with nice volume. OBSERVATIONS 1. Recent volume as per volume profile is less compared to previous accumulation and rally which means this was not a distribution region but a small pause. Breakout of which will continue the trend nicely. 2. Since the pause was in up-sloping price action and the buying(green) volume is more than the selling(red) volume , it makes sense to assume current region was a brief accumulation i:e buying took place. Which gives us more conviction that the up-trend will continue and risk is less. TARGET WITH LOGIC 1-2 accumulations have happened since the uptrend started. Regions marked in violet. So since the current volume is comparable to previous accumulation so it makes sense to consider the expected uptrend to be of equivalent magnitude. That is more the accumulation, greater the strength, so the more the move. So I used a Fib Extension from that level till now and chose a 168% as target. But this target is above all-time-high so its a provisional target level. Entry Confirmatory breakout has happened but price is still there giving us space and favourable RR ratio to enter. So entry at CMP. MY APOLOGIES I was supposed to post this earlier but was unable to. There is still space to enter it now. STOP-LOSS Since we are expecting a nice uptrend to continue with target high enough and again as it is swing trade, a conservative stop-loss will be better Since 1950 is a nice support levels and just above the previous accumulation during 18Dec 2020- 5Mar 2021, so i would prefer the stop-loss around that level. Keep trailing stop-loss as per you strategy. Using Moving Averages with ATR(Average True Range) as buffer is one the ways. EXIT Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep conservatively trailing stop-loss. Following can be used as exit signals or bearishness signals. 1. If there is bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low) 2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal. 3. If the trailing stop-loss is hit, please exit **IF YOU LIKE MY ANALYSIS, KINDLY GIVE A THUMPS-UP AND SHARE IT IF POSSIBLE, HELPS A LOT :) **I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC. TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO FOLLOW THE POST AND MY ACCOUNT. **YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES **ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED. NSE:MINDTREE
MLong
by VPA_TRADER
2
RELIANCE, ACCUMULATION, PRICE-ACTION-VOLUME-PROFILEDisclaimer-: 1. FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED. 2. Do ask your questions in the comments if any. Volume Profile-: Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price. 2. If the current volume is low, its mostly a pause before the trend resumes 3. If the current volume is higher or equivalent to historical levels then either the trend will resume or it may reverse. If it resumes then we have more strength in trend due to more accumulation. So a breakout/breakdown will confirm in this case OBSERVATIONS Reliance has always been rising. But recently since Sept 2020 we have seen a consolidation between 1800 and 2400 levels. Now as the volume profile suggests the recent volume is almost the same as the previous accumulation when NSE:RELIANCE started rising. (Regions are marked in violet boxes) So it could be either accumulation or distribution. But I bet its accumulation because of more buying(green) volume than selling volume and it has recently given a triangular breakout with huge volume. So if this is accumulation then a confirmatory breakout above 2400/2369 level will continue the uptrend even better than the previous one, because we have more accumulation now than before. So waiting for a breakout above 2400 level will be less risky and more profitable. I will update here when that happens TARGET WITH LOGIC Several Accumulations have happened since the uptrend started. So since the current volume is comparable to the previous accumulation region it makes sense to assume that the trend continuation will be longer than what happened since then. That is more the accumulation, greater the strength, so the more the move. So I used a Fib Extension from that level till now and chose a 168% as target. But this target is above all-time-high so its a provisional target level. Entry Confirmatory breakout above 2400 level in 1D timeframe or as per your strategy. But confirmatory breakout above the important and psychological 2400 level is less risky. Stop-loss Since 1850 is a nice support levels (support in the rectangular region, tested multiple times) so i would prefer the stop-loss around that level. Since our target is high enough, a conservative stop-loss will be better to avoid being stopped out unnecessarily. EXIT Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep conservatively trailing stop-loss. Following can be used as exit signals or bearishness signals. 1. If there is bearish candlestick pattern in 1W timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low) 2. If there is RSI Divergence in 1W timeframe, better to exit at close of 1W since afterwards there can be long consolidation or reversal. 3. If the trailing stop-loss is hit, please exit **IF YOU LIKE MY ANALYSIS, KINDLY GIVE A THUMBS-UP AND SHARE IT IF POSSIBLE, HELPS A LOT :) **I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC. TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO FOLLOW THE POST AND MY ACCOUNT. **YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES **ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED. NSE:RELIANCE
NSE:RELIANCELong
by VPA_TRADER