DLF Forms Bullish 'W' Pattern | Strategy Levels Marked

[nihalsari]

5
STRATEGY SNAP: CLASSIC 'W' BOTTOM PATTERN IN ACTION

CHART SETUP:

Stock: DLF (India)

Timeframe: Daily - Ideal for swing identification

Pattern: Bullish 'W' Formation (Double Bottom)

Key Feature: Right-side breakout above neckline

STRATEGY EXECUTION PLAN:

ENTRY ZONE: ₹723 - ₹725

Optimal area for position initiation

Confirmation above pattern neckline

RISK MANAGEMENT:

Stop Loss: ₹715 (Below pattern support)

Risk Per Trade: ~1.4% from entry

Position Sizing: Standard 1-2% portfolio risk

PROFIT TARGETS:

Target 1: ₹740 (+2.1% return)

Target 2: ₹760 (+4.8% return)

Risk-Reward Ratio: 1:2.1 (Very favorable)

PATTERN EDUCATION - THE 'W' BOTTOM:

Why This Pattern Works:

Double Support Confirmation: Price tested ₹715 level twice and held

Neckline Break: Signal triggers above the W's peak

Volume Confirmation: Ideally should see increasing volume on breakout

Measured Move Projection: Pattern height suggests ₹760 target

Pattern Psychology:

First bottom: Sellers exhaust at support

Middle peak: Bulls attempt recovery

Second bottom: Final test of support confirms reversal

Breakout: Bulls take control above resistance

MY STRATEGY CRITERIA MET:
Clear chart pattern identified
Defined entry with confirmation
Specific risk management levels
Favorable risk-reward ratio
Logical target projections

TRADE MANAGEMENT SUGGESTIONS:

Consider partial profit booking at Target 1

Trail stop loss to breakeven at Target 1

Let remaining position ride to Target 2

FOLLOW FOR MORE CHART PATTERN STRATEGIES!

[Nahid Hossen]

A clean W-formation — looks like buyers are stepping back in.

[Nahid Hossen]

A clean W-formation — looks like buyers are stepping back in.

[Rimon Khan]

If it breaks the neckline, momentum could get strong fast.

[Nahid Hossen]

Timeframe: Daily - Ideal for swing identification