TECHNICAL ANALYSIS

In this blog we will discuss a version of Flag pattern which is somewhat different from usual flag but gives promising result while trading/investing. IDENTIFICATION -  A rise of minimum 90% within a period of 2 months and thereafter a consolidation of several days to weeks plainly visible to the casual observer with a receding volume trend for best performance. TRADING - Average rise after the pattern formation is 50% of the previous increase from were the uptrend has started. Buy after the breakout from the consolidation area and stop loss would be the last low the stock made.  BEST PERFORMANCE -  Trade with prevailing trend of the market Flags without breakout day gaps performs better Select flags which are TALL and WIDE

In this blog we would learn about the types of triangles pattern and “How to trade them better?” In this blog I would mainly emphasise on important points that should be noted before trading the above triangles. There are 3 types of triangle namely - Ascending triangle  Descending triangle  Symmetrical triangle  ASCENDING TRIANGLE  Triangle which have a horizontal resistance and makes a higher low pattern as in the image below- DESCENDING TRIANGLE  Triangle which have a horizontal support and a lower high pattern as shown in the image below- SYMMETRICAL TRIANGLE   A triangle formed by making higher lows and lower high as shown in the image below- POINTS THAT SHOULD BE NOTED BEFORE TRADING A TRIANGLE PATTERN - For a triangle to be reliable price should cross the triangle multiple times filling the triangle, an empty triangle is not reliable and hence should be traded with cautious or not be traded at all.  Volume should be decreasing at the start and a ...