Superb Analysis! Can you please help me with Entry and SL?
Munchkunster
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@b9nk6, Thank you .. SL would be 307.5 .. you can enter with 30% capital now (while price is below 335) and rest when retest happens ...
To reduce your risk try to buy as close to 325 (support zone) as possible..Price should retest 325-330 level in the coming days before moving up
If it moves above 340 and that resistance zone becomes the new support..then adjust SL according to that and buy close to support
b9nk6
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@samarthgupta1911, Great analysis as always! liked it! I am in the trade at 343. Can you please help me with the SL? as it broke the resistance can i move the SL to 325?
Munchkunster
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@b9nk6, Always wait for the price to close above resistance level to confirm resistance break and then retest to confirm support..
The SL should still be 307.5 to avoid losses in case of a healthy retracement ..
The momentum is still positive but price can touch 315-320 levels before moving back up again.. so wouldn't suggest raising SL at this point ..
b9nk6
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@samarthgupta1911, Oh i understand! I believe in positional trading... there was a long term resistance at 340 so in 5 min chart I waited for the candle to finish and bullish candle closed at 343 so I placed an market order at that time.... Can you please tell me if I did anything wrong? Or any area where i can improve?
Munchkunster
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@b9nk6, No nothing wrong with it at all .. As long you understand your process and take risk according to your appetite ...it is all good ..
I look at long term perspectives more than short term ones.. for example i avoid looking at charts of TF below 60 mins .. simply because I am looking for trades which are slightly longer term and when looking for price movement over a week or month, 5 min movements lose their relevance..
My favourite TF are daily and weekly .. I only open hourly or 30 mins chart when I am curious to see how price played out over the day .. sometimes that does offer insights