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Axisline

Kotak Bank: Dancing Around the AxisHi Its not uncommon to see a stock trading within a range but its uncommon to see a stock playing around the axis line in a disciplined fashion on higher time frames. For an axis line to develop, firstly we should have an uptrend and a downtrend line converging at the apex as in this case. After that we should look for points where the price is rejected multiple number of times, with in the area confined by the trend lines. If we get a straight line after joining the rejection points, we get our axis line. The line does not have to be exactly in the center of the area specified. The beauty of the axis line can be more clearly seen by going few time frames lower as in this case it can be seen on hourly. By jumping onto lower time frames we can look for trading opportunities when the price approaches the axis line. As we always observe the axis line in the consolidation phase only, we should look for short term opportunities and book profits as soon as we approach the trend lines. The price may keep on oscillating as long as it does not break out of the trend lines, where we can look for longer term trend trades. I hope this knowledge would help some traders. Regards JJSingh
NSE:KOTAKBANK
by Bravetotrade
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