ACCUMULATION WITH PRICE ACTION AND VOLUME PROFILE Disclaimer-:
1. FOR WHOM VOLUME PROFILE AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED.
2. Do ask your questions in the comments if any.
VOLUME-PROFILE-:
Can be used to identify potential accumulation or distribution regions. If the volume of opposite trend is low then we will face less barrier to our current trend.
POC-: Point of Control- The red line is where the maximum volume is accumulated.
OBSERVATIONS-:
Stock fell in a drastic downtrend, formed a narrow wedge->broke out and then uptrend started.
While the uptrend several accumulations have happened. Current region is also an accumulation, but a breakout will confirm.
The volume above 2500 level is very low which means we will face weak resistance so there is a high chance the stock will rise to the levels of 4900- all time high.
ENTRY-:
2512 confirmatory breakout
STOP-LOSS-:
1948 is the support of the recent consolidation
EXIT
Sometimes we have to exit before target is reached if there is bearishness. Following can be the clues of bearishness-:
1. If there is bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level .(Like Candle Low)
2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit
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**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS, BREAKOUT ETC.
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NSE:HEG
