Trader's
Price Channel Pattern
Explanation :
Ticker : Indigo
Time frame : Daily (31 Aug'21)
Pattern : Channel
Expectation : Breakout/Breakdown (↓ or ↑)
Reality : appreciation in price (↑)
Position : Enter on breakout or breakdown
Go long if breakout
Go short if breakdown
Lesson : To avoid fakeout risk, wait for re-test
Ideal entry : Breakout & Retest,
when resistance become support (OR)
Breakdown & Retest,
when support become resistance
✰
- When a stock fails to touch the either of the line, there is a probability of a breakout on the other side. At zone (A) and zone (B) stock failed to touch support line, this indicates there is a possibility of breakout at resistance.
- If a stock gives fakeout then there is a chance of breakout on opposite side.
fakeout*: breakout + moving back into channel
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