What comes to your mind when you see a rocket Launch into space?
You assume two things:
1. It will be a successful Launch
2. It will go a Long distance
The same happens with a stock when it successfully breaks out with a Large Candle on huge volumes. Here are some Large Candle Breakout examples in 2017
1. TinPlate
Source: Chartalert.com
2. Chambal Fertilizers
Source: Chartalert.com
3. Tata Global
Source: Chartalert.com
4. JBM Auto
Source: Chartalert.com
5. PTC
Source: Chartalert.com
Do all Large Candle breakouts succeed like the above. Absolutely not – but yes the probability of success is very high and considering the size of the move, it’s easily able to compensate for the ones that don’t work out
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers