Trader's Corner
Trader's Corner

Why 'Stop Loss' is important?

descending triangle pattern
Descending Triangle

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

Price Channel
Price Channel
Excess price indicates the footprints of big investor.
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
  1. 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.
  2. 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"

  1. NOT WAITING FOR CONFIRMATION
  2. 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.
    doji
  3. TRADING AFTER DOJI IN MID TREND
  4. Trading the Doji in mid-trend and not waiting for it to appear at significant structure is a bad way of trading.
    mid_trend
  5. SMALL TIME FRAME DOJI'S
  6. 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.
    small_doji

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