2822, 615 PM "Need help with denttying consolation Pattems | Traderji.com Home > Forums > METHODS & STRATEGIES » Technical Analysis > = ZERODHA - Open Instant Account = ProStocks - Unlimited Trading @ 899 Need help with identifying consolidation Patterns A ijsyShety-O May 82020 yy Miayshetty Hi guys, am a relative beginner with Technical Analysis: Read quite a few books, In the books the charts & patterns so nice & clean &it seems like | understand them perfectly. But when | actually look at real lfe charts, | am totally unable to identify the patterns. Inthe books, they so neatly draw lines & identify the patterns Here isa stock (not indian) with dally chart from 2013. | have attached both bar & candle charts for the same. It seems lke there is consolidation {going on for afew months & then there isa breakout in Dec with high volume. Now | am totally unable to figure out what consolidation pattern itis (if tal there is one)? How do | lean to identify t? When someone else draws lines, | am able to figure it out. But how do I do it mysel? Any help will be appreciated tps: www. radercomvcommunityithreadsineed-elp-wi-identiying-consolidaton-pattons. 1082001 163723122, 615 PM "Need help with dentiying Pol ut H HH Hy ri 4! Ll iM yt al 4 mala j tt at) te snes elit, wn de he Ih nye! wt {i : rt m a my Wu tr sill inst ty hed yee A iit f Hani i ‘a he i! \ allekaoun Member 1 hon se Mi Hy In i it pol 12822, 615 PM "Need help with denttying consolation Pattems | Traderji.com Let me ty it out, [Assuming ths is the only stock history we have. Stack made fist bar on extreme left mark in yellow. Then made high at 7. Then have big sell bar but volumes missing. We mark point 1 as lifetime high forthe stock. Now whenever stock moves above the said zone it would be sign of strength \We have point 2 with gap down on high volumes but follow up selling missing Probability of testing towards point 1 is high now. But stock goes Sideways and made point 3, again on high buy volumes as closing higher than previous day, But no follow up on upside. Again sideways then moved down, \We have point 4 in picture as stock breached its sting days low, indicating weakness but volumes on downside is missing, Failure here means fist point of testing is towards point 3. Again crossing paint 3 there was low vakimes indicated by yellow region in late november. If-suppose prices stil had moved upside on these volumes it may have followed arrow path shown. But what prices dist gone sideways in december and then broken All time high zone as shown. This was indged a resistance zone as watch volumes, it have unprecedented high volumes to cross that point 1 resistance ‘Trade is now on at breakout & retest opportunity coming in.Ths is conservative trade For aggressive ones, opportunity was 3t after bar 4 when failed breakdown at point 4 or on sideways consolidation breakout in december This is basic level analysis with any stock. Ifyou had seen thousand of charts you can remove volume panel from the picture stil you can identity those trades, Identifying patterns is not holy grail Every pattern is prone to fallure, Master few and trade them well Of all pattems ilove to trade flags, rectangles, cup & handle, VCP, | need low volumes inside pattern, more iam comfortable with it, Most of useless pattern i think personally s head & shoulders, It may be debatable Textbook patterns are good for selling books and doing after event analysis, Many of writers who write books are not traders or investors. Posting accurate charts is a myth, sooner you get this better for your financial hes Also, | never suggest leaving jobs at hand & going full ime into market. Lastly trade in cash segment stay away from F&O. And leam risk ‘management, Never ever fallin love with stock. You wil fall into pit alongwith it Ghansforthe Oy Ning of adenestor Wiayshetty V ew eter Thank you forthe detailed reply ariLssrve sid: © “Master few and ace them well Of ll patterns ilove to rade flags, rectangles, cup & handle, VCP. Do you see any of these in the charts above? | ari ve sa @ hitps:www. vader) convcommuniyithreadsineed-elp-wi-identiying-consolidaton-pattons. 1082001 362822, 615 PM "Need help with denttying consolation Pattems | Traderji.com Zerodlha (20 Eq Delivery, £20 Intraday, F&O) \What is Low Volumes Inside Pattern? dior stg ang lint i ncn easy yo Ves ofcourse |e mssins Aalst WiaySheny sae: © ‘Thank you forthe dete rep. DDoyou se any ofthese inthe charts above? Chek to expand Do you see any of these in the charts above? Yes, there sa big rectangle between yellow line anc lower lie at point 4. This can also be classified as Cup with handle with handle at sideways action of december. And then breakout from the handle, What is Low Volumes inside Pattern? Stock cycle is such that fist stock run from 20-100 for example.and then go sideways or correct ina sideways or make pattern here between 100- 80 zone. Be it any pattern, for example flag. Than volume bars inside ths lag should have low volume bars compared to the volume bars when the stock was running up from 20 to 100 price. It simply means there is big selling going on. And if you spot any big sll bar (losing below previous day clase with high volumes) then it should have follow up on downside. else its 2 shakeout or trap, ating of Wadenestor ckviews4u ew Member Nay 25,2020 * Hi, | trust you are safe and wel in these diffcut times. Consolidation patterns describe the movement of a price oscilation in range. It isthe indecision af buyer n seller and the price moves sideways during this period, Within this sideways range, patern formation happens & ends up in price breakout, when the price of the stock moves above fr below the trading pattern /Range. Sharekhan Provide one tool called Pattern Finder. Pattern Finder helps you to identify / Scan chart patterns. Not only that, but you can also set an tps: www. radercomvcommunityithreadsineed-help-wil-identiying-consolidation-pattons. 1082001 463723122, 615 PM "Need help with denttying consolation Pattems | Traderji.com Zerodina (20 Eq Delivery, For education & Knowledge purpose, have created a small video about that tool. | hope this helps! >> 0 intraday, F&O) DISCLAIMER All vows expressed on this are personal & for information/Education purpose & my own and do not represent the opinions of any entity wiatsoever with which | have been, am now, or wil be affliated Product Offerings Head a Project Lanpp (By Sharekhan) ‘You must login or register to reply here. she f WG GP t OG % Similar threads Need help to trade better and to trade RIGHT Started by Rab - Mae 11,2022 Reps: General Trading & Investing Chat ‘5. Need help in converting Pine Script to AFL Started by satsh1872 Mar 8, 2022. 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