@Crown
This formation is called a Flag-Pole formation.
The previous rise being called a Pole and the current consolidation as Flag.
B/o from this formation would be above 284 wherein target would be calculated as the size of the pole i.e. roughly 100 pts.
Taking of position would/should have been at lower TL of the flag so as to minimise risk (SL being the lower TL) in case of a failure. In case of b/o and retest at least you have some % margin protection.
Hope this clears your confusion wrt this pattern.
Again there are many patterns in TA and all have mostly target of 100% from b/o levels. Only thing is you need to know which pattern and what to calculate for target i.e. Pole length for Flag Pole, Head height in HnS, Cup height in CnH, Triangle height in Traingle, etc.
For that you can visit investopedia.com and look around ...
:cheers:
This formation is called a Flag-Pole formation.
The previous rise being called a Pole and the current consolidation as Flag.
B/o from this formation would be above 284 wherein target would be calculated as the size of the pole i.e. roughly 100 pts.
Taking of position would/should have been at lower TL of the flag so as to minimise risk (SL being the lower TL) in case of a failure. In case of b/o and retest at least you have some % margin protection.
Hope this clears your confusion wrt this pattern.
Again there are many patterns in TA and all have mostly target of 100% from b/o levels. Only thing is you need to know which pattern and what to calculate for target i.e. Pole length for Flag Pole, Head height in HnS, Cup height in CnH, Triangle height in Traingle, etc.
For that you can visit investopedia.com and look around ...
:cheers:
I have tried calculating the targets with the help of chart patterns like flag, rectangle, triangle, wedges, pennants, cup & handle etc. But my problem is many times (around more than 50% of the time), the target is never met. May be because of myself choosing wrong scripts or some other reason. Like in this chart, if I calculate the target with Flag Pattern, it will be around 380. But that will be only operational if the price violates the resistance and keep moving up. Because, I have taken the trade in advance I don't know how to deal it.
And SM bhai can you please shed some light on the another issue also.
Further, the very painful problem is the level of buying the stocks. When I decide to take long trade in a script, I dont know how to handle it during the next day, when market opens. What I do, is to buy the script at whatever price it is available (which many times around 2-4 % more than the closing price on which basis I decide); therefore, it is eating most of the profit, which should have been there if I would have been able to enter the trade at appropriate level. Because, many times the script comes down around 2-4% and then I have to wait with tensed mind.