The three Moving averages converging significantly with Volume greater than 21 day average. Expected a break out..?
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Hi sir,
Moving Average technical indicator is the supporting tool to confirm the trend identified using dow theory, price patterns & candlestick analysis. So breakout cannot be expected using only moving average.
Dear Vignesh,
Thanks for your comments. Nice observation. However, Breakout strategy can be identified in the following cases.
3 EMA cross overs, MACD crossovers, CCI crossover…these are the strategy under the trend following with underlying fact that RSI to be greater than 0 (bullish) and Volume should be more. We can have strategies with or without candlesticks as well. All we need to check is Trend, Momentum, Volume, Volatility for any strategy. We need not wait for reversal pattern in the trend following strategy. May be in Contra.
Larsen also forming a Bullish engulfing yesterday…