CENTURY TEXTILE : Risk/Reward 1:6

Long Centurytex

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

I explain more about my analysis later in updates.
Comment: 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.
Comment: 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.
Comment: Centurytex 513 trading at 0.618% retracement. Closing above 0.618& re will be a good bullish sign.
Comment: Closed at 521.50 above 0.618 Re.
Comment: 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

Comment: Century Textiles New 52 Week High. 449.80
Comment: Typo *549.80
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.


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