Hi there! Let's talk about this small trade in Reliance. Reliance CMP:- 2524.05 -->From 30th sep to 1st Dec Reliance has formed HH and HL and was in Uptrend. -->Since then Price is in correction and approached 0.618 Fib level of that up wave.
What's in my mind? -->If we observe the price action there is an untested demand zone at this 0.618 Fib area. -->If we observe the upper 2 arrows those mentioned candles and and their volumes saying that there was some distribution happened may be reason for this correction -->If we observe the bottom arrow that mentioned red candle with high volume is a support breakdown and may be the stop losses of previous long trades
What's my point? -->Even if price continues to move down I'm expecting a pull back before that and this Idea is actually trading that pull back. -->If my analysis goes wrong and price breaches this demand area I will exit with my stop loss and enter at next demand areas with new confirmations.
Entry setup: Enter Long: 2480 Stop Loss : 2425 (70 rupees per share and one can plan their risk accordingly)
Managing the trade: If the trade goes in our way *Exit half Quantity 1:1 Risk/Reward Target and Shift to SL to cost *Exit Half of the remaining with 1:1.5 or 1:2 Risk/Reward (by looking at momentum) and trail the SL. *Exit remaining with trailing Stop loss.
*SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY. *NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES
***If you like my analysis let me know by giving boost or a comment.
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