Pure price action Swing trade opportunity in VIDHI SPECIALTYVIDHI SPECIALTY has gone 10x since the March 2020 covid crash and still rising.
The chart has formed an inverse head and shoulder pattern on the daily timeframe .
A strong green candle with Huge volumes broke out of the resistance zone providing a good swing trade opportunity.
Huge volumes and big green candles usually attract little profit-booking, which should bring the prices back to the breakout point.
Risky traders can take a trade in the next trading session and put a stop loss below the support marked on the chart or below the breakout candle.
The key to making consistent profits in trading is not just identifying a pattern and taking a trade right away.
The obvious is not always obvious.
Protect your capital. It's okay to lose an opportunity than take a loss.
I would deploy a trade if the price retraces & takes support near the breakout zone.
This filters out the fake breakouts (fakeouts). This also increases the chances of losing out on the trade if the price does not retrace, but I'm okay with moving on to the next opportunity.
Stop-loss : Slightly below the strong support.
Target : The depth of the Head & Shoulder pattern, measured from the breakout point.
Risk/Reward : 1:3
Disclaimer:
This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor.
Sharing my analysis and thoughts for a stronger and healthier community. Cheers
