Multiple indicators for rally
Look at the following chart. It gives an ideal opportunity to invest near the bottom and participate on the sharp upward rally. The Stop Loss is the low of previous bull candle.
This chart is very bullish for the following reasons -
- Bullish engulfing with very high volumes.
- Its making a higher bottom. Yet to make a higher top on weekly chart.
- Retesting the earlier resistance line and taking support at that.
- Possible start of the strongest wave.
On the other hand, it can spend some time in the range. But as long as it is above the stop loss, its okay.