CENTURY TEXTILE : Risk/Reward 1:6

Jan 9, 2020

2020(6)
Long Centurytex

Entry 490
Stop-loss 473
Target 590
Risk/Reward 1:6

I explain more about my analysis later in updates.

Jan 9, 2020

Note

Bullish Flag Breakout.

One thing i hate about all the chart patterns is placing a stop-loss at the pattern lows. That spoils a RR Ratio.

Bullish Flags are continuation patterns it assumes that the prevailing trend will continue after the breakout.
So why keeping stop-loss at the pattern low?
If the trend is strong then breakout will be as strong as a trend too.
I don't applying a re-test theory in my trading with short term patterns.



This are my views about trading short-term patterns. Critics are welcome to discuss.

Jan 9, 2020

Note

It looks like a pullback is completed, and now ready to continue on going up-trend with a flag breakout.



We are trading probabilities, we can't predict future prices, but we can trade what is probable as per our learning and experience.

Jan 13, 2020

Note

Centurytex 513 trading at 0.618% retracement. Closing above 0.618& re will be a good bullish sign.

Jan 13, 2020

Note

Closed at 521.50 above 0.618 Re.

Jan 16, 2020

Note

Trailing Stop-loss to the Entry price and using a covered call, lowering the risk.
CMP 530 SPOT & writing 30JAN 560 CE at 7.60

Jan 21, 2020

Note

Century Textiles New 52 Week High. 449.80

Jan 21, 2020

Note

Typo *549.80

Jan 24, 2020

Trade closed: target reached

Century CMO 600. The target of 590 Achieved, It's a 20% Jump.

However, my gains are restricted to 15% or 77 Rs due to a covered call. But Still it decent gain.