M C X MCX fut is trading inside squeezed triangle pattern & on BBands on an hourly charts with decrease in OI suggesting short covering.
Risk:Reward = 1:2
Could be bought with mentioned stoploss & targets.
Not to b missed breakout.
Squeeze
US 500 Daily Squeeze Set UpThe Index is currently exhibiting a mid-compression squeeze pattern on the daily time frame, which is a technical setup that suggests a potential breakout in either direction. In this case, all the EMAs are positively stacked, indicating a bullish bias, and the momentum is also above zero, which further reinforces the possibility of an upward breakout.
However, it's important to note that there is strong support at 4049, which means that a downside breakout is also possible below this level. Traders should keep a close eye on this level and wait for a confirmed breakout in either direction before taking any positions.
On the upside, the important pivot level is at 4195. If the squeeze fires on the upside, we may expect the Index to reach potential targets at 4299-4344. These levels are based on Fibonacci retracements and extensions, which are common tools used by technical analysts to identify potential price levels based on past price movements.
Additionally, using Trend Based Fib Time projections, we can estimate that the above-mentioned targets may be achieved between 10th May to 2nd June, 2023. This is based on historical patterns and trends observed in the market, and can help traders plan their trades and manage their risk accordingly.
In conclusion, the mid-compression squeeze on the Index daily time frame presents a potential opportunity for traders to take advantage of a breakout in either direction. However, it's important to exercise caution and wait for a confirmed breakout before taking any positions, and to use technical tools like Fibonacci levels and Trend Based Fib Time projections to identify potential targets and manage risk.
GLENMARK- Squeeze Buy!GLENMARK
Attached: Daily Chart as of 31st March, 2023
Bullish Opportunity in Glenmark is clear as Price has Not Only given a CLASSIC CUP & HANDLE BREAKOUT
BUT IT is also accompanied by a Squeeze Buy Signal aka the Squeeze Release !
(Note: Squeeze is a volatility and momentum indicator introduced by John Carter, which capitalizes on the tendency for price to break out strongly after consolidating in a tight trading range. The volatility component of the Squeeze indicator measures price compression using Bollinger Bands and Keltner Channels. If the Bollinger Bands are completely enclosed within the Keltner Channels, that indicates a period of very low volatility. This state is known as the squeeze. When the Bollinger Bands expand and move back outside of the Keltner Channel, the squeeze is said to have “fired”: volatility increases and prices are likely to break out of that tight trading range in one direction or the other.)
CMP= 464.7
Targets🎯:
T1= 500
T2= 550
Stop Loss⚠️:
below 445, which is Breakout Candle Low
Squeeze - The Secret to Successful Breakouts!The squeeze indicates tightness and volatility in a stock. In the example here of #krishana, a high compression squeeze was seen the day before the breakout. This is indicated by the yellow date in the squeeze indicator. If the squeeze is combined with the VCP pattern or the formation of higher lows prior to the breakout, the probability of success of the breakout increases significantly.
#breakout #trading #squeeze #krishana
BOLLINGER BAND SQUEEZEBollinger Bands
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We all are familiar with the much popular Bollinger bands (BB). It has two bands - Upper BB and Lower BB. These bands envelope the price of an instrument and are plotted at a standard deviation level above and below a simple moving average (sma) of the price (20 sma in most cases). BBs help in determining whether the price is high or low on a relative basis.
The Squeeze
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One of the most effective way to utilize BB in a trending environment is to trade the squeeze.
In order to understand squeeze you must know what is volatility.
Volatility is simply the rate at which the price of an instrument increases or decreases over a particular period.
In other words, If the price of an instrument is fluctuating up and down very fast in a short interval of time, hitting highs and lows, it is said to be highly volatile. On the other hand, If the price is moving up or down more slowly, or is relatively stable, it is said to have low volatility.
BB works on the basis of volatility. When the volatility is higher, the BB expands and when the volatility drops to historically lower levels, the BB squeezes. John Bollinger used an indicator known as 'Band width' to measure volatility.
According to John when Band width drops to its six month lows, it leads to squeeze.
Squeeze is seen when price trades in a narrow range, or consolidates as we call it very often. Under such conditions, the UB and LB come closer to each other or pinch together. It often reminds me of watering plants with a garden pipe. We pinch the pipe so as to control the flow and increase the range of sprinkles. Same is true for BB. The pinch or squeeze (low volatility environment) leads to expansion (high volatility environment). So low volatility leads to high volatility and vice versa.
Points to be noticed before trading squeeze:
First, the price must gyrate in a narrow range for some time;
Secondly, the Band Width should drop to its six month low value;
Thirdly, expansion in the direction of the primary trend will bring the odds in your favor. Following primary trend will also help avoiding fake moves against the trend.
Above Nifty chart is a good example of squeeze on the daily timeframe. The band width value reduce to 0.02 in July 2021 from 0.09 in 2021 June. Also observe the price movement and a small fake out against the primary trend at the end of July. Finally Nifty expanded in the primary direction.
I hope you enjoyed reading.
Keep liking for more posts.
Regards
Adani Total Gas Ltd: Bollinger band squeeze inside Keltner ChIn Daily chart stock is getting Bollinger band squeezed inside Keltner Channels. I marked recent history in the chart to verify this pattern and If stock gives closing above BB then it is most probably going to give at least 25% profit as per trend ATGL following.
so, Target would be anywhere near 25% and SL can be lower band or mean of BB.
Note: I'm new to technical analysis , do your own Math. I'm open to new ideas and flaws in my analysis, so please do comment and collaborate.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial adviser before taking any trade.
Moving in a patternMoving in a pattern from a long time.
Might respect it again and give long opportunity or might breakdown and create short opportunities.
Worth keeping a watch!
Kotak bank up flag under play!Has a upflag formation with a tight BB squeeze and consolidation over days....
Volatility Squeeze Setup.I've observed nice trade setup. One can trade/invest the stock now with SL of 698 for a good reward.
Bollinger Bands Squeeze is a powerful yet simple trade setup. One can identify the Squeeze when bandwidth is at around 6 months low. One can enter the trade when price starts trading out of the band. Mostly this setup rewards the trader nicely as one enter the trade early with small stop loss of one candle/Bar and ride the swing. The stock has given the breakout so one can trade it. Please note that sometimes stock gives a fake breakout just to shake the traders in that case one should reverse the trade and continue with that direction.
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
BUY/Learn : Bollinger Bands Squeeze BreakoutBollinger Bands Squeeze is a powerful yet simple trade setup. One can identify the Squeeze when bandwidth is at around 6 months low. One can enter the trade when price starts trading out of the band. Mostly this setup rewards the trader nicely as one enter the trade early with small stop loss of one candle/Bar and ride the swing. The stock has given the breakout so one can trade it. Please note that sometimes stock gives a fake breakout just to shake the traders in that case one should reverse the trade and continue with that direction.
Wishing you all Profitable prosperous new year.
Learn to Trade -- Bollinger BandsHi,
Squeeze and Expansion is one of the famous ways to trade BB. In the following steps I will try to explain how I trade it.
# Look for a stock in long term uptrend but currently in correction. The 'Long Term' depends on time horizon of trading. For positional trader it could be daily while for intraday traders it could be hourly. So selection of stock would depend upon the trading style.
# Once the stock is found, jump to a lower time frame. This time frame is 4-6 times lower than the longer time frame taken above.
1) Wait for a strong impulse wave, which usually signals the beginning of an uptrend. One may see divergence on any momentum indicator for confirming change in trend. Many traders miss this wave due to many doubts but that's OK. The impulse is the first indication that there will be follow through.
# Normally such huge moves are associated with very wide separation in BBs. The upper band is moving Northward while the lower Southward.
2) Finally at the end of impulse the lower BB starts bending Northwards, and correction begins. The extent of correction depends on buyer-seller equilibrium but I am interested in looking for price action below the 20MA BB line. For further confirmation I use 55 EMA, whenever possible, means action near and preferably below this EMA decides the trade.
# An A-B-C type correction is preferred.
3) Upto this stage strong squeeze in BB can be observed.
4) Then wait for the price to move back above the MA or/and EMA as shown in this example. Price may take support at MAs, however strong spikes below MAs may be followed by closing candles above MAs which show strength.
# These spikes are a great for placing Stop orders.
5) Entry would be triggered as the price progresses beyond the upper BB, preferably also breaking a range or trendline, confirmed by above average volume.
# Another important confirmation is BB expansion on this break.
6) Take profit at a previous resistance/swing high or a Fib. level.
7,8) One may find another buying opportunity as the price pulls back, preferably near MAs.
# Price action near MAs would be the key for entry, see example. Stop could be placed below swing low.
9) After this late entry, the target would be previous high or one may exit as per any other exit strategy.
Although all this looks bookish but it actually happened on this stock and I also published the same idea. After all whatever is written in books is learned from experience.
Filtering a stock to apply a strategy is the hardest part but you know, there is no easy money in trading business. So good luck.
Trade safe and respect every trading strategy.
Hit like if you think this information is useful.
Regards
Bravetotrade
