Century Textiles - Risk-Reward Ratio 1: 4.80 Long Above 345 Stop-loss 325 Target 438
Century textiles broke out of a symmetrical triangle recently. It formed an Inside Bar today after a strong up move yesterday. Two or more up days prior to inside days or bar increases the probability of upward momentum to continue after a breakout.
Trading With Inside Bars Inside bars/days represents volatility contraction and a temporary pause in ongoing momentum. Inside bars can be traded with the trend or at the time of trend reversal. There are many variations in Inside bars. I'm not gonna write an article here explaining Inside bars. Just Google it.
The idea is to go long above the high of yesterday's strong up move. Expecting the upward momentum to continue after today's inside bar formation or today's pause in momentum.
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Price went to 387 from 344, And now SL hit. Any single tick below Stop-price is SL hit. No waiting and, no watching.
Trade is closed.
One can use trailing stop-loss according to risk appetite.
Isnt it safe to enter the trade after the script is above the long time support became resistance level of 350-351!!
Equity-Earningz
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Current momentum suggests that its in good upthrust. If you wait for more confirmation and buy above 350-351, it's still valid but it will spoil your risk-reward ratio. I really don't care much about my accuracy, so I don't wait for the safest entry-level. Trading is all about probability, the stock may or may not perform, breakouts may or may not go in our anticipated direction. In the end, the only thing that matter is how much we make we are right.
And yes it is safe to take entry above 350-351.
Thank you for your comment.