If you are a swing/ positional cash trader, this works beautifully when you want to pick a stock at an early stage. There's just a slight difference: with stocks, you will not always get a proper channel; you may only get an upward-sloping trendline or a descending trendline. (20
Take a buying trade, if it is touched multiple times and give a break to the upside. You can confirm the breakout when it also breaks the immediate resistance or the previous swing high. In stocks, an additional confirmation required is the volume. (21/
When the stock was falling, the volume should be lower. When it breaks the trendline, the volume should increase in bullish candles. This increase in volume adds to the conviction of the breakout. This represents a proper trend reversal pattern. (22/
In stocks, use this on the daily timeframe only, as this setup is for swing and positional traders. (23/
If you enjoyed this thread, please repost it and follow me. I am planning to write another thread next weekend. Also, follow my telegram channel-
telegram.me
If you enjoyed this thread, please repost it and follow me. I am planning to write another thread next weekend. Also, follow my telegram channel-
telegram.me
Loading suggestions...