Ideal setup for swing trade with multiple buy signals - Alcargo
Read the chart from left to right for a clear understanding.
Stock: Allcargo
Trade type – Swing
Buy level: 348.10 (above breakout candle)
SL: 318.75 (below the breakout candle)
Target: 398
Risk/Reward ratio: 1.7
The setup uses price action and two indicators – RSI & MACD for confirmation of the signal.
Chart formed a Gap on 02nd November. Gaps are formed due to strong buying/selling interest. These gaps are considered to act as strong support levels on the chart.
Rationale behind the bullish view:
- Price recently took support at the gap range and reversed its direction and started making higher highs and higher lows.
- The latest Strong green candle accompanied by good volumes broke out above the previous high.
- Price making lower lows but RSI making higher lows. This is a positive divergence indicating buying interest
- RSI above 55 and trading above its EMA indicates buying strength.
- MACD crossed over the signal line confirming the trend.
Taking the trade:
- The buy level is slightly above the breakout candle. The buy trade can be executed on an hourly timeframe if the price sustains above the breakout candle high.
- If the trade works out as expected, Although the target and SL are fixed in this trade, both should be shifted up when the price makes a higher high and higher low.
- Strict stop loss should always be followed for risk management.
This is not a buy/sell recommendation. I'm posting my analysis here to track it and to learn from the community.
Follow me if you like my analysis. More detailed trades coming up.
Stock: Allcargo
Trade type – Swing
Buy level: 348.10 (above breakout candle)
SL: 318.75 (below the breakout candle)
Target: 398
Risk/Reward ratio: 1.7
The setup uses price action and two indicators – RSI & MACD for confirmation of the signal.
Chart formed a Gap on 02nd November. Gaps are formed due to strong buying/selling interest. These gaps are considered to act as strong support levels on the chart.
Rationale behind the bullish view:
- Price recently took support at the gap range and reversed its direction and started making higher highs and higher lows.
- The latest Strong green candle accompanied by good volumes broke out above the previous high.
- Price making lower lows but RSI making higher lows. This is a positive divergence indicating buying interest
- RSI above 55 and trading above its EMA indicates buying strength.
- MACD crossed over the signal line confirming the trend.
Taking the trade:
- The buy level is slightly above the breakout candle. The buy trade can be executed on an hourly timeframe if the price sustains above the breakout candle high.
- If the trade works out as expected, Although the target and SL are fixed in this trade, both should be shifted up when the price makes a higher high and higher low.
- Strict stop loss should always be followed for risk management.
This is not a buy/sell recommendation. I'm posting my analysis here to track it and to learn from the community.
Follow me if you like my analysis. More detailed trades coming up.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.