2. Minimum Price Target : 1350 ( Adding the difference between highest high made and lowest low during the formation to The Neckline )
3. Stop loss : 900 (Usually, price closing below the second bottom is a stop-loss.)
Only Problem While treading Double Bottom is it's having a 1:1 Risk Reward Ratio, When Minimum Price Target reached. So apply your money management wisely.
For Example : If you wanna Risk 5000 as a Maximum loss then Trade, Risk Amount / Stop loss Points = Quantity to be traded.
5000 Risk Amount / 226 Stop loss in Rs. = 22 Shares to be traded to Earn apx 5000 as Profit.
Statistics says that 70% of Double meets predicted price targets. Assuming 10 trades. 7 wins = 7*5000 = 35000 3 loss = 3*(5000)=(-15000) Net Profit After every 10 calls will be 20000.
As said earlier because Double Bottom Reversal Pattern having a 1:1 Risk to Reward ratio Need to Pick trades carefully.
Always Keep your Risk Profile low When you have RR less then 1:2.
Comment
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Revised Sl in Ajanta Pharma @ 1140. If Closing Below 1140, Trade must be closed.