Trade ideas
Dr Reddy - Flan and Pole Brekout (Bullish Breakout) # Dr. Reddy has given a Consolidation Breakout
# As per Technical Analysis this is Called as a Flag and Pole Breakout. This is a perfect Text Book Breakout in Price and as well as on RSI with More than Avg Volume.
# Long Positions can be created for Target of Flag.
# Buy Dr Reddy {Cash Levels} 5380-5450 for Target = 5680-5740 with SL = 5200
Drreddy - BO Charts speak more than my words now here : low risk setup ;; huge rewards :)
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➼My name is Apoorv and I am a 2nd year Engineering student, I want to pursue trading as my career, and thus whatsoever setups or trades I potentially see on my charting platform, I post it here and share them with you all.
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RSI Divergence - Regular & HiddenThe price is moving in parallel channel as can be seen. So suppose once it reaches the lower line/ support, how to verify whether we can go long or we need to short. RSI Divergence comes handy here. We already have one confirmation that since price is moving in a channel and the lower line does seem to be support so it may bounce back.The next confirmation comes from RSI Divergence discussed below.
CASE STUDY 1 - RSI Positive Divergence
We observe a positive divergence in RSI opposite to negative/downward movement of price. In case of regular positive diveregnce ( where RSI moves upward making higher lows , opposite in direction to price's lower low movement , it is better to take a long position. Well that worked and the price bounced back.
Case Study 2 - RSI Hidden Divergence
Here as we see a positive hidden divergence where the price is making higher lows and the RSI is making lower lows. No that hidden divergence indicates " Trend Continuation ". So the price kept moving up and up and may move to the upper parallel line. The price may make a downward move once it reaches the upper line.
Please correct me if i am wrong.