Learning to catch High Probability Breakouts
- Thread starter amitrandive
- Start date
- Status
ash_akbari
SEBI and Forum rules prohibit , just giving buy/sell recommendations,targets and stop losses.
We need to clearly explain with charts/excel sheets , the reason behind our analysis.
Daily Chart of LT
Daily Chart of Gail
Weekly trendlines/support resistance lines =Blue
Daily trendlines/support resistance lines =Yellow
SEBI and Forum rules prohibit , just giving buy/sell recommendations,targets and stop losses.
We need to clearly explain with charts/excel sheets , the reason behind our analysis.
Daily Chart of LT
Daily Chart of Gail
Weekly trendlines/support resistance lines =Blue
Daily trendlines/support resistance lines =Yellow
Measure the strength of the trend
http://blog.forex4you.com/7-tried-and-tested-ways-to-measure-the-strength-of-the-trend/
A fundamental aspect of technical analysis involves measuring the strength of the prevailing trend and estimating the likelihood of it continuing. There is a vast array of techniques and tools available to analysts to make informative and accurate assessments – below I have outlined 7 techniques which I have found especially useful. They are not complicated and require relatively simple price charts, making them inexpensive to apply.
1.Trend lines
One of the most essential methods to measure the strength of the prevailing trend is to draw a trend-line, as shown in the chart below. Trend-lines must touch the price at least twice and reflect the trend. If price breaks below the trend-line it signals that the trend is weakening.
There is a theory that when the trend-line for a trend is broken and has to be re-drawn three times, it is a sign the trend has finished and is about to reverse. This is called the ‘corrective fan principle’ and is illustrated in the Eurodollar chart below.
http://blog.forex4you.com/7-tried-and-tested-ways-to-measure-the-strength-of-the-trend/
A fundamental aspect of technical analysis involves measuring the strength of the prevailing trend and estimating the likelihood of it continuing. There is a vast array of techniques and tools available to analysts to make informative and accurate assessments – below I have outlined 7 techniques which I have found especially useful. They are not complicated and require relatively simple price charts, making them inexpensive to apply.
1.Trend lines
One of the most essential methods to measure the strength of the prevailing trend is to draw a trend-line, as shown in the chart below. Trend-lines must touch the price at least twice and reflect the trend. If price breaks below the trend-line it signals that the trend is weakening.
There is a theory that when the trend-line for a trend is broken and has to be re-drawn three times, it is a sign the trend has finished and is about to reverse. This is called the ‘corrective fan principle’ and is illustrated in the Eurodollar chart below.
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