Encyclopedia of chart patterns by Thomas N Bulkowski good book to start with.
Now lets see saucer pattern in DS Kulkarni developers .
whats saucer pattern?
Its a rounded bottom pattern where a stock moves sideways. The more it moves sideways the more its getting accumulated. The saucer or rounding bottom chart pattern is similar to the cup but it takes a much longer period to develop. This pattern usually develops after a strong trend collapse. It may take 3 to 6 months or longer to develop. The breakout behavior is similar to that seen on a cup pattern. Its not mean that every saucer need to have downtrend before. There is no certain rule to trade chart patterns.
So how to calculate target for saucer pattern?
The upper edge of the saucer pattern is established. The distance between this rim and the lower edge of the pattern is measured. This is projected upwards to set the target for the breakout.
so lets see what could be the target of DSKULKARNI
Rim 90 and lower edge 60. so distance is 30. Once stock close above 90 weekly look for a target of 120 in that with a stop of 85.
Keep tracking DSKULKARNI @ 120 !!!!!!!!!!!!
Happy trading !!!!!!
Jay
