BHARAT FORGE - TREND CONTINUATION PATTERN GUIDENSE:BHARATFORG
What is trend continuation ?
Trend continuation means when we are in uptrend and witness a healthy correction most likely sideways movement in a channel and it breaks the correction sideways zone with big momentum candles then it might be signaling a strong new up trend starting.
#so lets see how we can play with trend continuation on a live setup in Bharat forge.
Whats happening in Bharat forge?
*Used Bar chart on a weekly Timeframe.
There are confluence of factors that are signaling this setup.
Lets identify them one by one
1. Prior trend :- The most important thing one should confirm is the existance of previous trend, cause if there is no identifiable previous trend then how can the price form a trend continuation pattern.
As in bharat forge there is a good bullish prior up trend.
* on chart marked as Major up trend.
2.Correction:- The Stock should give a opposite move in the trend with low volumes and the range of movement should be narrow. the tighter the range the better it is.
This correction should not break any major lows in the previous up trend.
As in Bharat forge the corection is in form of channel and its on low volumes.
3.Confirmation signals:- some basic confirmation signals are
(a.) Strong breakouts on small time-frame
(b.) Volume picking up.
(c.) Big momentum candels.
As in Bharat forge formed a strong resistance at 850, the price is unable to break this level from last 1 year in 3 attempts.
on 31-10-2022 it formed a Ranging candle and created a rally base rally power pattern and move above 850 can give a strong break out for a positional target of 1000+
One can hold with a stop loss of 789 and do trail the stoploss with favorable movement.
Hope you like this Idea.
please like and comment.
Thanks for reading.
Keep learning,
Happy trading.
