The Index has made a symmetric pattern. Symmetric pattern can be continuous as well as reversal triangle pattern, depending on which side the breakout is going to take place. In our case we expect the breakout to be on the upside, but as we know that the market is irrational and we can't predict it earlier, will go with the trend, we will avoid fighting the trend. If the breakout of the pattern is seen on either side we will enter the position accordingly.

In symmetric the buyer and seller are coming near to a price and where one of them stops fighting and a breakout is seen according to that. If there is no supply we will see demand over powering which will lead to buying pressure and if the demand is not there and the supply is high we will see sellers overpowering the buyer.

A simple understanding of price action is always a key in the market. We have seen a shortfall in the pattern and buying pressure was there in the index but near the resistance zone the seller came back in action which led the stock close to its candle open forming a doji. A doji is one of the underrated patterns in the whole technical analysis. A doji always helps traders or analysts to have a clear picture about what is happening in the market and what are the levels to consider ahead.

Coming to the conclusion of the study, we will advise the trader to participate as per the breakout with a filter of 1%.

And if the breakout is gapped up pr down 75% of the time this move will give you target.

CHINA H SHARES

Oct 02 2021

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