Hey Friends,
Congestion in stock market trading is referred to the period when the stock loses its volatility and forms an area which is called as (VCZ) Volatility Contraction Zone. As a trader its our prime duty to identify the VCZ’s. Once we identify the VCZ then there are several steps to take to the benefit of a trader.
What to do if you identify Volatility Contraction Zone ?
You must love that you have found VCZ, as the prices are not meant to stay in that zone for a longer time and sooner you will get absolutely fantastic BIG-BIG move in the stock.
The first and foremost thing to do is to not to trade in the VCZ
Look out for levels where the stock can break above or below the VCZ
Look out for reduction in volumes as well
Forming higher / lower bases
To know more about just dials pattern go and read below
STOCK : JUST DIAL | RECO: BUY | PRICE: 496-490 | STOP : 474 | TARGET : 558
Observations on the Chart:
Just dial has formed a congestion zone among the two blue horizontal lines
Once it has broken the zone and fallen to 465 see near base 3
Earlier also a a congestion zone formed see yellow eclipse
The stock has recently been creating higher bases see base 1, 2 & 3
Twice the stock has trapped the bears see black circled areas
also there is ascending triangle pattern formed in just dial see the Horizontal red line at 513 and a upward sloping blue trend line
Currently the stock is quoting around 502 once the stock falls to 496- 490 ( one can think of Entering long (see point EL) in Just dial and keep a protective stop loss at 474 (see point XL 1) and expect the price to inch higher towards 558 see point XL-2
Questions to ask your self
Have you ever been caught in congestion zone or Volatility contraction zone?
If yes what have you done after that ?
How to not get trapped in such VCZ ?
Trading Mantra:
It’s not what we do once in a while that shapes our lives. It’s what we do consistently. _ Tony Robbins
Thank you for Sharing…
Happy Reading…..
Happy Trading…..
Be A Wealthy Trader
Congestion in stock market trading is referred to the period when the stock loses its volatility and forms an area which is called as (VCZ) Volatility Contraction Zone. As a trader its our prime duty to identify the VCZ’s. Once we identify the VCZ then there are several steps to take to the benefit of a trader.
What to do if you identify Volatility Contraction Zone ?
You must love that you have found VCZ, as the prices are not meant to stay in that zone for a longer time and sooner you will get absolutely fantastic BIG-BIG move in the stock.
The first and foremost thing to do is to not to trade in the VCZ
Look out for levels where the stock can break above or below the VCZ
Look out for reduction in volumes as well
Forming higher / lower bases
To know more about just dials pattern go and read below
STOCK : JUST DIAL | RECO: BUY | PRICE: 496-490 | STOP : 474 | TARGET : 558
Observations on the Chart:
Just dial has formed a congestion zone among the two blue horizontal lines
Once it has broken the zone and fallen to 465 see near base 3
Earlier also a a congestion zone formed see yellow eclipse
The stock has recently been creating higher bases see base 1, 2 & 3
Twice the stock has trapped the bears see black circled areas
also there is ascending triangle pattern formed in just dial see the Horizontal red line at 513 and a upward sloping blue trend line
Currently the stock is quoting around 502 once the stock falls to 496- 490 ( one can think of Entering long (see point EL) in Just dial and keep a protective stop loss at 474 (see point XL 1) and expect the price to inch higher towards 558 see point XL-2
Questions to ask your self
Have you ever been caught in congestion zone or Volatility contraction zone?
If yes what have you done after that ?
How to not get trapped in such VCZ ?
Trading Mantra:
It’s not what we do once in a while that shapes our lives. It’s what we do consistently. _ Tony Robbins
Thank you for Sharing…
Happy Reading…..
Happy Trading…..
Be A Wealthy Trader