CHAMBAL FERTILIZERS LTDEdukasi
How to trade a flat base (FB) pattern?
A flat base pattern is long flattish movement of share price.
Usually, I would invalidate > 30% move from FB pattern if I am using monthly candles. For weekly my barometer is 15%.
In most cases, FB pattern gives a very strong breakout. In some cases annualized returns > 100 % can be expected.
Rather than keeping fixed targets for such breakouts, a 20% trailing stoploss would give a better result.
Ideal usage of FB pattern is weekly and monthly timeframes.
RSI between 40 and 60 during the flat base and RSI > 60 after breakout is a confirmation to the trade.
Credits of the idea - Bullkowski's book on chart patterns
Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
Usually, I would invalidate > 30% move from FB pattern if I am using monthly candles. For weekly my barometer is 15%.
In most cases, FB pattern gives a very strong breakout. In some cases annualized returns > 100 % can be expected.
Rather than keeping fixed targets for such breakouts, a 20% trailing stoploss would give a better result.
Ideal usage of FB pattern is weekly and monthly timeframes.
RSI between 40 and 60 during the flat base and RSI > 60 after breakout is a confirmation to the trade.
Credits of the idea - Bullkowski's book on chart patterns
Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.