adeelahm1979

AVN head and Shoulder pattern going short

PSX:AVN   AVANCEON LTD
AVN formed a head and shoulder pattern. I was working on this trade since August 16th and once the neckline formed I entered into a short trade with sell stop order on August 25, 2023. Although bearish divergence was not present, I still executed the trade knowing the pressure in the market which was evident in KSE 100 index and other tech leading scrips such as SYSTEM and TRG were forming divergence. Hence I took the weakness of the sector into consideration and neglected the divergence rule for the Head and shoulder pattern. Already TP1 hit and now waiting for TP2. Also I am anticipating PRZ where once bullish divergence is formed, I will go long after confirmation of a reversal via dow theory.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.