I am a very small retail investor.I usually don't take any kind of risk 300-400 rupees daily profit is enough for me rather than loosing thousands. Safe trading is the key to earn.For me,Its all about my strategy and how do I protect my stop loss.
Generally I gave preference to fundamentally sound stocks to make their charts.Before making any chart i follow price action of that stock every day. My theory is "Keeping Things Simple". Below is the chart of reliance industries that i made before trade.
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| Fig-1 |
So, How do I make it?
I opened a Candlestick chart of Reliance industries and uses two hours candle for making my chart.Looking at the chart I found that From Feb 16,2020 to May 7 , 2020 stock is facing resistance at point A,B,C,D as shown in Fig-1.Then, I drew a resistance line by connecting all four point. I also drew a trend line by connecting Point-1 and Point-2 as shown in Fig-1.I traded on reliance on multiple supports and makes money in that but here i am sharing only my last trade on reliance. Seeing the latest trend i connected point-3,5 and search for reversal candle. Then i found hammer candle near point-5 and put it in watch-list and track it for some time. After successful breakout above resistance line, I executed a buy order by confirming price-action by seeing MACD Bullish Crossover.
Always remember, "Do not anticipate and move without market confirmation - being a little late in your trade is your insurance that you are right or wrong." Quote by Jesse Livermore.
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| Fig-2 |
On next trading day,Reliance industry opened Gap up and reached new high. By seeing the formation of inverse hammer candle. I exited by trade.
For Stop loss, I was tracing trend line that connects point 3,5. If I still long in that trade then my stop loss would be the low of that day.
I am sharing screenshot of my BTST trade too.
I am sharing screenshot of my BTST trade too.
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Thanks for sharing. Keep sharing the good content, it's really motivating us.
ReplyDeleteThanks for sharing
ReplyDeleteThanks for the information of your strategy... But can you please explain what is inverse hammer candle and when to use it
ReplyDeleteWell said
ReplyDeleteexcellent sir
ReplyDelete