Trading with Trend Lines

[Pradeep Narayan]

SCENARIO 2:

The downtrend got defined at Bar A and was then revised at the next Bar (B). However, the price did not close below A or for that matter B in the subsequent 2 days. By then the price direction had changed to Upward.

Hence, NO TRADE at Bar A or Bar B.

 

[Pradeep Narayan]

SCENARIO 3:

The Uptrend was confirmed at Bar A (Trend Line) & later at Bar B. The close of Bar B was above the Revised & Initial Trend Line. This provided the signal for entry at Bar C open. Further Bar C closed above Inflection Line 2, signalling LONG position as choice of trade.

 

[Pradeep Narayan]

Further qualification of trade in Scenario 3:
The Inflection Points are at 282 & 294 approx. This gives a mid-point of the range at 288 & since the price is above that we can safely go Long with an SL at 288 +/-.

The nearest target can be 300 & then 306 assuming a similar Inflection Range in place.

 

[manojborle]

Pradeep ji can you Please explain more about inflection point with some charts ?

Thanks

 

[Pradeep Narayan]

 

[manojborle]

Sir just 1 more chart please with candlesticks(having hard time with bar charts) to understand it clearly, Preferably daily chart if you don't mind.

Thanks

 

[Pradeep Narayan]

Manoj, please tell which stock?

 

[manojborle]

Hindustan Zinc, IOC anyone

 

[Pradeep Narayan]

 

[Pradeep Narayan]