Understanding Price using Timeframes!
Initial Understanding on Weakly TF:
1. Pattern: A clear Inverted H&S pattern is formed which took around 3 Years to form and that signifies entry in the Stage 2 i.e. Mark-Up.
2. Volume: Volumes has seen a drastic jump this year as compared to previous years, which again tells the presence of bulls.
3. Resistance Zone: A number of times resistance zone between 275 and 288 has been tested multiple times making it weaker and weaker. It is normally seen that when zones either support or resistance are tested multiple times, a break from the same results in great rally on a single side.
4. Moving Averages: After a bearish crossover completed in Oct-2018 the bear trend was established which was broken in Dec-2020 with a bullish crossover and rising averages indicating the trend shift from bearish to bullish.
When the price broke and the candle is formed, there lies the two possibilities i.e.
(a.) A successful BO
(b.) A BO faliure
A successful BO is confirmed only when the High of the alret candle is taken out, which here is done. Therefore, we can say a successful BO has been completed.
It does not mean that it is sure shot rather the probability is in the favour of buyer.
Daily Chart Trend Continuation
With around 250 days of sideways momentum which also formed a right shoulder for the pattern on Weekly TF. Here, with mixed signals throughout the year no opportunity was given to the buyer to add shares in the portfolio but on Sept-1 a clear trend started to form indicated by rising EMA.
This gave the confidence to add the stock into the watchlist and add some alerts to time the entry.
Hourly Chart For entry
A close above the short term trendline is the zone for entry. Here, the price is indicating all the positives for a successful BO as observed in the weekly TF.
1. Pattern: A clear Inverted H&S pattern is formed which took around 3 Years to form and that signifies entry in the Stage 2 i.e. Mark-Up.
2. Volume: Volumes has seen a drastic jump this year as compared to previous years, which again tells the presence of bulls.
3. Resistance Zone: A number of times resistance zone between 275 and 288 has been tested multiple times making it weaker and weaker. It is normally seen that when zones either support or resistance are tested multiple times, a break from the same results in great rally on a single side.
4. Moving Averages: After a bearish crossover completed in Oct-2018 the bear trend was established which was broken in Dec-2020 with a bullish crossover and rising averages indicating the trend shift from bearish to bullish.
When the price broke and the candle is formed, there lies the two possibilities i.e.
(a.) A successful BO
(b.) A BO faliure
A successful BO is confirmed only when the High of the alret candle is taken out, which here is done. Therefore, we can say a successful BO has been completed.
It does not mean that it is sure shot rather the probability is in the favour of buyer.
Daily Chart Trend Continuation
With around 250 days of sideways momentum which also formed a right shoulder for the pattern on Weekly TF. Here, with mixed signals throughout the year no opportunity was given to the buyer to add shares in the portfolio but on Sept-1 a clear trend started to form indicated by rising EMA.
This gave the confidence to add the stock into the watchlist and add some alerts to time the entry.
Hourly Chart For entry
A close above the short term trendline is the zone for entry. Here, the price is indicating all the positives for a successful BO as observed in the weekly TF.
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