This chart reflects various aspects of technical analysis. Let's understand them
1. Price action perfectly shaping up for a move (Pink line reflecting behavior of price).
2. Price taking support at previous breakout levels(Resistance acting as support for the stock).
3. Price making a flag pattern too. (Draw a trendline below the already drawn one.) A trend Continuation Pattern which provides a lot of confidence to all the trend traders.
4. Volume picking up the pace as the price is trying to move up (What do u think who is making all these positions?).
5. A hammer with big tail/wyck reflecting strong interest of buyers which pushed it back up.
What else do we need before entering a trade?
Hope it will help you understand.....
Cheers and Happy Trading.
Disclaimer: I am not SEBI registered. Please trade with caution and manage your risk. Consult your financial advisor before entering into any trade.
1. Price action perfectly shaping up for a move (Pink line reflecting behavior of price).
2. Price taking support at previous breakout levels(Resistance acting as support for the stock).
3. Price making a flag pattern too. (Draw a trendline below the already drawn one.) A trend Continuation Pattern which provides a lot of confidence to all the trend traders.
4. Volume picking up the pace as the price is trying to move up (What do u think who is making all these positions?).
5. A hammer with big tail/wyck reflecting strong interest of buyers which pushed it back up.
What else do we need before entering a trade?
Hope it will help you understand.....
Cheers and Happy Trading.
Disclaimer: I am not SEBI registered. Please trade with caution and manage your risk. Consult your financial advisor before entering into any trade.