SL: Depending on your risk appetite: Below Weekly BO Candle / Below Daily BO Candle / 50% of Weekly BO candle / Below 20DMA TGT: After a 10-15%+ vertical move, breakdown of 20MA on Hourly chart (on a daily close basis)
BUY GUIDANCE: Never ever buy before 3PM. I have been burnt many many times.Try to buy between 3:15 - 3:30PM, later the better.
SELL GUIDANCE: Selling in Profit: Sell earlier in the session when the prices are higher, around 11AM.
Selling at SL: Give your stock a chance to recover by end of session. If it doesn't recover, sell anywhere between 3:00 - 3:30PM.
Note: I reserve the right to be wrong. For educational purposes only.
The pattern should work as per 'Sister Stock' concept.
But RSI looks conflicting between 1W & 1D TF. On a W-TF its rising and on D-TF its falling. How do you tackle when there is conflict in multiple TF?
Could you please tell what this RS Nifty 50 indicator indicates?
raavigeorgian
⋅
@Minhaj_AK, Interesting question man.
Sister stock concept works well when the entire sector is moving. This is a micro cap with decent pedigree, it might give more return than the sector leader, (it helps to have some quantity of this along with a CCL products or a Tata Coffee).
Whenever in doubt, I trust the higher time frame unless there are other factors pointing otherwise. It helps to look at the sector movement. You can go into the hourly TF and look at what the chart is saying. Falling RSI with falling volumes is a good sign. Enter when the volume dries up. Alternatively, you can wait for the volumes to show up and then enter.
RS line simply shows stock’s strength compared to Nifty. When the nifty has a down week, you want to see the RS line above Nifty line.
Minhaj_AK
⋅
@raavigeorgian, as you mentioned to trust the higher TF whenever in doubt but doesnt the lower TF indicate a change in sentiment which would take time to reflect in a higher TF?
raavigeorgian
⋅
@Minhaj_AK, True. Technical analysis is also a study in fractals. There are bull and bear cycles on every time frame, even the 1 min TF. In one weekly candle there will be infinite bull and bear cycles. But we will speculate a change in sentiment only if the candle low is broken, and get out of the stock humbly accepting our hypothesis about it was wrong at that particular time. Biggest of traders have a 50-60% win ratio. So be true to your SL, everything else will take care of itself.
Also, studying volume helps tremendously to ones analyses.
But RSI looks conflicting between 1W & 1D TF. On a W-TF its rising and on D-TF its falling. How do you tackle when there is conflict in multiple TF?
Could you please tell what this RS Nifty 50 indicator indicates?