Opportunity Ahead
KUNAL KAMBLE
YCL·
Jan 28 2024
The security is currently forming a falling parallel channel, a pattern known for its favorable breakout potential. Historical data indicates that a breakout on the upside from such a channel has a strong success rate, with a failure rate of less than 12%. Therefore, any breakout, whether to the upside or downside, presents a viable opportunity for traders.
Two specific conditions have been identified for taking positions:
Condition 1: Consider initiating a Long position if the Security closes above the parallel channel in a 1-hour time frame, with the RSI above 53 (except when the RSI is above 80, in which case it should be ignored). Additionally, the Security should be trading above the EMA.
Condition 2: For a Short position, look for a close below the parallel channel in a 1-hour time frame, with the RSI below 40 (unless it's below 20, in which case it should be disregarded). Furthermore, the Security should be trading below the EMA.
Given these conditions, the advice is to trade under the breakout, whether it occurs to the upside or downside while ensuring the specific RSI and EMA criteria are met