Rectangle pattern also known as trading range, consolidation.We get multi-day, multi-week or multi-month consolidation where price move in range.
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A Thread on Rectangle Pattern:-
Rectangle pattern also known as trading range, consolidation.We get multi-day, multi-week or multi-month consolidation where price move in range.
The price should touch two point of resistance and two point of support parallelly to form rectangle pattern. Price move in range line "A " and line "B", line "A" known as resistance or supply, line "B" known as support or demand.
If you go through textbook method volume should dry up during the consolidation. But in my experience it is not necessary that volume should dry up there are time when volume get aggressive during consolidation.
Longer the duration of rectangle pattern generally more aggressive the breakout going to be.
ENTRY:- Entry will be at breakout candle high with 0.3% buffer.
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Get a cup of coffee.
In this thread, I'll walk you through Shannon's Demon.
This is an investing "thought exercise" -- posed by the great scientist Claude Shannon.
Solving this exercise can teach us a lot about favorable vs unfavorable long-term bets, position sizing, etc.
🧵Finding expected targets and exit criteria to look for to exit the
How to find out the expected targets and what should be the exit criteria when you enter a trade - \U0001f9f5
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Check if any patterns forming - it gets quite easy to figure out the targets that way. (1/15)
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The 90 degree angle inflection point in a stock is a signal to book profit
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Lets understand with a recent example of a stock #IRCTC \U0001f683\U0001f68b
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By which u can easily find out blasting stocks.
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🌟Lesson 2 - if stock is making same pattern ( in 2 /3hours chart) after given breakout of (weekly /monthly chart) , then chances of stock going up is much more.
Ex - #HGS after given breakout of Trendline ( range) in monthly chart, again making same pattern 4 hours chart. 💞
🌟Lesson 3- if stock never come to retest it's weekly & monthly breakout zone then the chances of it's 2x is much more.
EX - #happiestmind everytime consolidating & making new high. 💞
@chartmojo
@charts_breakout
🌟Lesson 4 - when whole market fall still strongest stocks only consolidate or move down very little.
Ex - when this march market took correction 800/1000 points #jindalpoly just consolidating from that time.
Now ready for new high . 💞
🌟Lesson 5 - when market recover the strongest stocks recover very fast & will make new high.
Ex - #happiestmind when market take little correction & again bounce little , then #happiestmind made new high before market .