Rounding bottom breakout pattern Learning. Educational purpose

27 באוק׳ 2021

This is a chart of indiamart, here i am sharing to learn some logics of rounding bottom along with reasons, targets and stop loss.

Here price has formed rounding bottom, and now it has given breakout along with good intensity of volume at same breakout candle, with supporting views by rsi above 60 at breakout, along with macd running positive crossover and now above zero line.

if price retest the neckline of rounding bottom and rises again then probabilities of win are increased. here stop loss should be bottom of rounding pattern and targets should be double of total depth of rounding bottom to neckline, so our risk rewards ratio would be at least 1:2

price challenging upper bollinger band

supporting indicators


Disclaimer
I am not sebi registered analyst
My studies are for educational purpose only
Consult your financial advisor before trading or investing