Learning

How to fix Targets for Investment Stocks

In Monthly Chart take the Low of the last BH>50%CH Candle and multiply by 1.618 for the next month Target. Do it as a one-time activity at the close of every Month.

Here is the Simplified Illustration for Asahi India as a Case Study (Fig.1)

Condition: CCI 34 in Monthly Chart must be >+100. The stock must be in Momentum and that is gauged by CCI 34 staying above +100.

If you are not aware how to analyze a BH>50% CH Candle, here is it.

BH is Body Height of the Candle and is the Absolute Difference between Close and Open of the Candle.

CH is Candle Height of the Candle and is the Absolute Difference between High and Low of the Candle.

Take its percentage relation.

If BH / CH % is greater than 50%, it’s a BH>50%CH Candle.

Such a candle is considered as a Strength Candle, as in such a candle for more than 50% of the time of the candle’s period, the stock has been in one direction. Due to this it is also referred to as Decisive Candle and is a ‘must’ on Range Breakout and therefore also called as Breakout Candle.

Refer blog post:

Breakout or Strength Candles

Non-Breakout Candles

While there are many other ways to arrive at Targets, this is one of them

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also
Close
Back to top button