A Mega Thread on "VOLUMES" and why is it so important during our "SETUP" formations🧵🔑 PART- I
Before we get started, let us understand what are volumes in a stock's/price chart in simple words: In a price chart, volumes refer to the number of shares or contracts traded during a specific time period. It gives an idea of how active and liquid a stock or financial
Before exploring the reasons behind Triveni's significant 108% price surge in such a short period of time, it's important to first analyze its historical chart. By understanding past price movements, we can gain better insight into the factors influencing these recent changes.
▶️Here we can see that the price made a high on 17th of Apr '17 after an astronomical move of 567%. ▶️ After reaching a high, the price entered a short-term distribution phase with moderate volumes. It then found support at the 50 EMA and subsequently rose again with strong
▶️ Ultimately after a fierce sell off, the price made a base low on 16th of Apr '18. After the low was created, the price went into consolidation phase of around 20 weeks. ▶️After a brief consolidation phase, the price attempted to push above the 50 EMA on 10th of Sep '18 with
▶️However, as the price was moving up, it created a short term resistance on 13th of Jan '20. The price took resistance from that zone and fell drastically with huge bearish candle supported by decent volumes. ▶️This meant that all the hard work previously done was essentially
▶️As the price surged and consolidated near the short-term resistance, it hovered above the 50 EMA, forming multiple lower wick candles. This pattern indicated that supply was being quickly absorbed within the same day, reflecting strong buying interest. ▶️One key point to note
▶️ As the price consolidated near its highs, it was only a matter of time before a strong breakout occurred. This breakout happened on 12th of Apr '21, when the price surged past all supply zone levels and closed above them, supported by massive volumes. ▶️ Additionally, observe
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