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Rectangle

how rectangle pattern works ?rectangle pattern 1. price moves in range on side ways to form a rectangle pattern. 2. as a result , a firm resistance on upper side and support on lower side formed . 3. stock will have either a distribution phase or continuation phase till breakout of resistance or breakdown of support happens 4. an impulsive move at resistance with volume will suggest a breakout for steep , fast movement of the stock to next resistance levels . 5. an impulsive move at at support with volume will suggest a breakdown for steep , fast movement of the stock to next support levels . 6. trade setup : a.buy above resistance of rectangle pattern keeping support levels as stop loss . b.sell below support of rectangle keeping resistance level levels as stop loss . 7. mostly a tussle happens in between resistance & support for good period . and fast breakouts and breakdowns happens 8. usually volume will be dry during consolidation phase of the pattern . volume spike will happen at breakout / breakdown zone for trade confirmations. for education purpose cadilahc taken one hour time frame .... same applies for all times and tgts too.
CEducation
by HARMONICSANAND
5
[ INTRADAY ] GODREJPROP LONG BET risk: Reward ratio is 1: 2 Rest as per Charts ******** Note - One of the best forms of Price Action is to not try to predict at all. Instead of that, ACT on the price. So, this chart tells “where” to act in “what direction. Unless it triggers, like, let’s say the candle doesn’t break the level which says “Buy/Sell if it breaks”, You should not buy/sell at all. ======= I use shorthands for my trades. “Positional” - means You can carry these positions and I do not see sharp volatility ahead. “Intraday” -means You must close this position at any cost by the end of the day. ======= Always follow a stop loss. In the case of Intraday trades, it is mostly the “Low/High of the Candle”. In the case of Positional trades, it is mostly the previous swings ********
NSE:GODREJPROPLong
by Palkesh_Agrawal