ACCUMULATION WITH PRICE ACTION AND VOLUME PROFILE (1D)(LONG)
Using Volume Profile one can identify probable accumulation or distribution regions by comparing the historical Volume at Price and current Volume at Price. Most of the times a breakout/breakdown from the region confirm accumulation or distribution.
In GUJGASLTD since the rally began, current volume levels are comparable to previous volume levels when previous accumulation had happened. Current region was sideways for a considerable amount of time. So a confirmation was necessary. And it gave a breakout above the resistance line , for confirmation , ATR(14) ( Average True Range ) was used as a buffer.
So a confirmatory breakout has happened in 1D timeframe
ENTRY:
Entry can be taken at 1H timeframe after the probable retracement or at Current Market Price at 11am
Target:
Since the current volume are comparable to the pvs rally it makes sense to assume the expected rally after current accumulation, to be of equivalent magnitude, So Fib Extension of 100% is the min Target Level. Its a provisional target level, since it is at a all-time high.
EXIT
Periodically Trailing of Stop-loss with moving average in 1D tf or when RSI Bearish Divergence is observed in 1D timeframe can be used as exit criterias.
Since the target is above all-time-high , so exiting at the target doesnt make sense. Rather better to hold the position till either the stop-loss is hit or RSI Bearish Divergence is observed.
STOP-LOSS
Stop-loss Can be Placed at the Support of Accumulation Region
**DO FOLLOW MY ACCOUNT FOR REGULAR QUALITY SETUPS USING PRICE ACTION AND VOLUME. YOU MAY ENABLE EMAIL NOTIFICATION TO NOT MISS ANY IDEAS**
**PLEASE COMMENT REGARDING THE ANALYSIS, IT'LL BE HIGHLY APPRECIATED**
**THANKS**
GUJGASLTD
BSE:GUJGAS
In GUJGASLTD since the rally began, current volume levels are comparable to previous volume levels when previous accumulation had happened. Current region was sideways for a considerable amount of time. So a confirmation was necessary. And it gave a breakout above the resistance line , for confirmation , ATR(14) ( Average True Range ) was used as a buffer.
So a confirmatory breakout has happened in 1D timeframe
ENTRY:
Entry can be taken at 1H timeframe after the probable retracement or at Current Market Price at 11am
Target:
Since the current volume are comparable to the pvs rally it makes sense to assume the expected rally after current accumulation, to be of equivalent magnitude, So Fib Extension of 100% is the min Target Level. Its a provisional target level, since it is at a all-time high.
EXIT
Periodically Trailing of Stop-loss with moving average in 1D tf or when RSI Bearish Divergence is observed in 1D timeframe can be used as exit criterias.
Since the target is above all-time-high , so exiting at the target doesnt make sense. Rather better to hold the position till either the stop-loss is hit or RSI Bearish Divergence is observed.
STOP-LOSS
Stop-loss Can be Placed at the Support of Accumulation Region
**DO FOLLOW MY ACCOUNT FOR REGULAR QUALITY SETUPS USING PRICE ACTION AND VOLUME. YOU MAY ENABLE EMAIL NOTIFICATION TO NOT MISS ANY IDEAS**
**PLEASE COMMENT REGARDING THE ANALYSIS, IT'LL BE HIGHLY APPRECIATED**
**THANKS**
GUJGASLTD
BSE:GUJGAS
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