Why 'Stop Loss' is important?
A descending triangle is a bearish chart pattern created in technical analysis by connecting a series of lower highs with one trend line and a series of lows with a second horizontal trend line.
Explanation :Forex pair : EURGBP Time frame : 30 min. (28 Sep'21) Pattern : Descending triangle Signal : Descending triangle gives bearish signal Expectation : price will fall (↓) Reality : appreciation in price (↑) Position : Short Result : Stoploss hit (loss with 1:7 risk reward ratio) Lesson : Trade with confirmation (respect your stoploss, no revenge trading) Ideal entry : Breakout & Retest, when support become resistance
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
Pro Tip
- 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
Three ways you might be misusing the "Doji"
- NOT WAITING FOR CONFIRMATION In the trading world, the most popular concept is to wait for confirmation before entering a trade. The idea is to filter out bad trades, so always wait for confirmation after a Doji. Remember patient is the key for successful trading.
- TRADING AFTER DOJI IN MID TREND Trading the Doji in mid-trend and not waiting for it to appear at significant structure is a bad way of trading.
- SMALL TIME FRAME DOJI'S Doji is usually a good indication of indecision meaning neither buyers nor sellers are in control. Utilizing Doji's on the lower time frame which just generally aren't as accurate because of noises.



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