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Exhaustion

parallel channel pattern trade<If there is small range then we should trade after breakout either side. <It has a range of 15% which is enough for swing trade. < Whenever there is a huge range, we should trade at the edge of the parallel channel. < Here, price is touch lower level of it so we should enter here for better risk-reward ratio. <Long position should be initiated at a level of 490-495 with sl below the pattern (2.5%) <Position should close near resistance level 555-560. < RR ratio 1:4 Learning- In a parallel channel pattern with a huge range, when the price takes support from the lower trendline of the channel and reaches the upper trendline and gives a breakout, the trend will exhaust due to long travel so the breakout may convert into a fake out so always take trade at support or resistance line.
NSE:MARICOLong
by mahhisingh
HAVELLS WEEKLY CHART ANALYSISHavells had a W-pattern break near March 2020 lows. The W and M patterns are very commonly seen on the candlestick charts. W patterns are bullish in character and are generally seen at the bottom of a downtrend, whereas M patterns are bearish and are seen at the top of a rally. The stock made new highs in Nov 2020 followed by strong follow up bullish candles which can be observed till mid-Jan 2021. Thereafter, the stock went into consolidation for about 6 months but the downside was limited. The consolidation is a phase in which a stock gyrates in a range for some time. If the stock forms deeper lower-lows and lower-highs, it is called a correction. But in case of Havells, the lows were not deeper enough to call it a correction. The consolidation ended up as a falling wedge pattern (which is considered bullish in character) and then broke out of this pattern in July 2021. The stock had a very strong breakout above the previous high at the end of August but it ended up as an exhaustion. Exhaustions can be observed as very wide candles at or near the top of a rally. It signifies that the buyers are exhausted and the stock may face a sluggish rally or consolidation or correction in the coming weeks or days. The October sharp fall is an evidence of the exhaustion in the August. But this sell off stopped right near the prior important support/resistance zone (1200) and there was no follow up on the downside thereafter. The stock tested the 1200 zone recently in December and has been trying to hold. It seems like a range bound action between 1200 to 1500 can be seen in the coming days/weeks (support near 1200 and resistance near 1500). A strong break on either side (below 1200 for downside and above 1500 for upside) will lead to a decisive move. I hope this analysis will help some traders/investors in decision making. Regards #Consult your financial advisor before final decision making.
NSE:HAVELLS
by Bravetotrade
Mentorship InstaView 18 Aug’21: Morning shows the Day - Not Here
Nifty View: Benchmark Nifty fails to hold onto early gains with which it opened today’s trade. A classic “Exhaustion Gap” on the 75min chart lead to follow-through selling for the rest of the session. At a close of 16,572 there is not much damage on a close-to-close basis, but yes some sign of slowdown which will appeal to the Bears. The underlying trend is still very much UP and one should not conclude a reversal of trend based on today’s move. 16,500 is of course the obvious level that the market will look for as short term support. Maintain the bullish bias and wait for buying opportunities at supports. Thank you for following my work and please feel free to share your thoughts and suggestions.         Trade Well. Trade Wise. 
NSE:NIFTY1!
by Abhijit_Paul
Basic of Gap theory(Common gap, Breakaway gap, Runaway, Exhaus )Gaps can offer evidence that something important has happened to the fundamentals or the psychology of the crowd that accompanies this market movement. Gaps can be subdivided into four basic categories: • Common gap • Breakaway gap • Runaway/ Continuation gap • Exhaustion gap -------------------------------------------------------------------------------------------------------------------------------- --> Common gap-: Common gaps generally occur uneventfully or when there is nervousness among the investor and has low volume , generally gap is filled in the future . --> Breakaway gap( Measuring gaps )-: A breakaway gap is those which have high Volume and the chances are more to cover the gap . The traders who have invested in the wrong side need to cover them. A new change in the market has taken place. The point of news breakout becomes support or resistance. --> Runaway gap-: runaway gap has increased in liquidation and those who are holding the position will get panic and sell/buy. the runaway gap is caused by the trading limit imposed by the exchanges. --> The exhaustion gap ( Island-cluster )-: exhaustion gap happens near the end of the movie. Mainly have a high volume and have a large difference from the previous price, in this state of panic long down move is transpire due to a feeling or belief that bad things will happen. exhaustion gap quickly fills a gap when price reverse. I will update shortly Real-Time use of Gap Trading Strategy shortly. Kindly comment, if you have any questions/suggestions for me. You can share your LOVE by giving LIKES .
NSE:BANKNIFTYEducation
by Trade-Technique
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