In this article, we analyze
GRASIM
using VWAP and parallel channel.
A parallel channel consists of two parallel lines and a middle line which is equal distance from the upper and lower band of the channel. All of these three lines can work as great support and resistance as you can see in the chart.
Along with candlestick patterns I like to use VWAP to make entries for my trades (Intra / positional)
How can we use channel pattern and VWAP for confirming entries
Now for the analysis of Grasim industries, we will use a similar approach. On daily time frame strong selling can be seen ( Candle with long wick above the small body) if price sustains below VWAP and uses it as resistance and breaks the channel from below we can expect a downward move of up to 2%.
Profit booking and SL as per emotions. (I generally use VWAP as a SL too)
views only for educational purpose
GRASIM
using VWAP and parallel channel. A parallel channel consists of two parallel lines and a middle line which is equal distance from the upper and lower band of the channel. All of these three lines can work as great support and resistance as you can see in the chart.
Along with candlestick patterns I like to use VWAP to make entries for my trades (Intra / positional)
How can we use channel pattern and VWAP for confirming entries
- If the price finds support at the lower band of the channel we wait till a candle closes above VWAPto make a long entry, the target can be middle line.
- If the price resists at the upper band of the channel we wait till a candle closes below VWAP to make a short entry, the target can be the middle line or the lower band as per price action.
- Similarly, we can use the middle line of the channel to make entries.
Now for the analysis of Grasim industries, we will use a similar approach. On daily time frame strong selling can be seen ( Candle with long wick above the small body) if price sustains below VWAP and uses it as resistance and breaks the channel from below we can expect a downward move of up to 2%.
Profit booking and SL as per emotions. (I generally use VWAP as a SL too)
views only for educational purpose