Reliance Power - VCP pattern in formation buy at Breakout - 33
Reliance Power is forming Potential Volume Contraction Pattern (VCP) a pattern made popular by Mr. Mark Minervini.
Please refer pattern and the points plotted on the chart. Do Watch out this stock for VCP formation
The chart has been plotted with the supporting information to indicate how it is forming VCP pattern.
VCP pattern ideally should be traded on breakout i.e above 33, however considering it has forming a base, Aggressive investors can enter at 29, with strict stop loss of 27.10
About VCP pattern --
Imagine a stock's price going up and down like a rollercoaster. A VCP is when this rollercoaster starts to calm down, with smaller and smaller ups and downs. This creates a kind of "base" where the price hangs out for a while.
What's happening?
Calm before the storm: The stock is taking a breather after a big move.
Smart money is buying: While the price is calm, big investors might be secretly buying up shares.
The breakout: If the stock suddenly breaks out of this calm period and starts to go up strongly, it's a signal that the big investors are now selling their shares, pushing the price higher.
So, what do you do?
Wait for the breakout: Don't jump in too early.
Buy after the breakout: Once the price breaks out of the base, consider buying if you think the stock will keep going up.
Be careful: Like any investment, there's a risk the price might go down after the breakout.
Disclaimer : Educational Content. Please do your own research !!
Please refer pattern and the points plotted on the chart. Do Watch out this stock for VCP formation
The chart has been plotted with the supporting information to indicate how it is forming VCP pattern.
VCP pattern ideally should be traded on breakout i.e above 33, however considering it has forming a base, Aggressive investors can enter at 29, with strict stop loss of 27.10
About VCP pattern --
Imagine a stock's price going up and down like a rollercoaster. A VCP is when this rollercoaster starts to calm down, with smaller and smaller ups and downs. This creates a kind of "base" where the price hangs out for a while.
What's happening?
Calm before the storm: The stock is taking a breather after a big move.
Smart money is buying: While the price is calm, big investors might be secretly buying up shares.
The breakout: If the stock suddenly breaks out of this calm period and starts to go up strongly, it's a signal that the big investors are now selling their shares, pushing the price higher.
So, what do you do?
Wait for the breakout: Don't jump in too early.
Buy after the breakout: Once the price breaks out of the base, consider buying if you think the stock will keep going up.
Be careful: Like any investment, there's a risk the price might go down after the breakout.
Disclaimer : Educational Content. Please do your own research !!
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