Another very simple technical analysis which works wonders in the markets.
We have heard of BREAKOUTS. It could be upside or downside. It could be a breakout of any zone, consolidation, range, trendline, any indicator or anything. The Important thing is that a breakout BREAKS OFF an Important Level in the market. There can be many indications when there can be a potential breakout, out of which one is a simple CONSOLIDATION around the Zone.
CONSOLIDATION is a PRICE ACTION which says that buyers and sellers are accumulating in a tight range and obviously one has to win after a tussle, so whosoever wins will take the price with him. Now in case of a Resistance or Support if the price is consolidating near its resistance and support and attracting to it multiple times (in this case the Price is going to its resistance 4th time), it becomes weak and it may mean that it is continuously trying to break that level. And if it fails to do so it will again come back into its range.
ENTRY can be made at the same price i.e 1657 for aggressive trading or whenever it gives a closing out of the Consolidation zone in weekly candle.
STOPLOSS - If it gives closing below the consolidation zone.(However Closing below this zone will also give an opportunity to go short)
Reward/Profit - It can be projected by plotting the same price range upside the resistance as it was trading before. In this case it shows a target of Rupees 2000.
**Market is a game of probability, No-one is 100% right here, no one needs to be, to become profitable. The ultimate goal is to make money and to trade taking only calculated losses.
We have heard of BREAKOUTS. It could be upside or downside. It could be a breakout of any zone, consolidation, range, trendline, any indicator or anything. The Important thing is that a breakout BREAKS OFF an Important Level in the market. There can be many indications when there can be a potential breakout, out of which one is a simple CONSOLIDATION around the Zone.
CONSOLIDATION is a PRICE ACTION which says that buyers and sellers are accumulating in a tight range and obviously one has to win after a tussle, so whosoever wins will take the price with him. Now in case of a Resistance or Support if the price is consolidating near its resistance and support and attracting to it multiple times (in this case the Price is going to its resistance 4th time), it becomes weak and it may mean that it is continuously trying to break that level. And if it fails to do so it will again come back into its range.
ENTRY can be made at the same price i.e 1657 for aggressive trading or whenever it gives a closing out of the Consolidation zone in weekly candle.
STOPLOSS - If it gives closing below the consolidation zone.(However Closing below this zone will also give an opportunity to go short)
Reward/Profit - It can be projected by plotting the same price range upside the resistance as it was trading before. In this case it shows a target of Rupees 2000.
**Market is a game of probability, No-one is 100% right here, no one needs to be, to become profitable. The ultimate goal is to make money and to trade taking only calculated losses.