GAIL has been showing good bullish momentum since past 3 weeks (Check weekly chart).
Price has now come near to resistance area, but there is a gap of 2-3 points which needs to be filled until a trade can be executed.
I only go long in stocks which are trading above their 50EMA and GAIL has recently crossed that level so the trend is in our favour.
Risky traders can enter above 97, but for proper risk management I will enter only when the gap is filled.
Here's the indicator analysis :
I am still trying to figure out a good setting for ADX. Here, I have used ADX(8) with DMI(13).
And,as to why I am not interested in the trade right now near these levels is because the upper close of the gap is also a 50% fibo level as shown in the image below :
Price has now come near to resistance area, but there is a gap of 2-3 points which needs to be filled until a trade can be executed.
I only go long in stocks which are trading above their 50EMA and GAIL has recently crossed that level so the trend is in our favour.
Risky traders can enter above 97, but for proper risk management I will enter only when the gap is filled.
Here's the indicator analysis :
I am still trying to figure out a good setting for ADX. Here, I have used ADX(8) with DMI(13).
And,as to why I am not interested in the trade right now near these levels is because the upper close of the gap is also a 50% fibo level as shown in the image below :
Comment:
Update : 3/6/2020 - No trade initiated yet.
Trade closed: target reached