HDFC BANK institutional buying zone
Updated
HDFC bank has been in this range since about 300 days and has always bounced back from
this institutional buying zone where big players accumulate.
It has approached this range again giving a beautiful risk to reward ratio of 1:3 and more.
As seen in the past, on the break of this minor downward trend, the market rallies to the resistance zone hence we should follow the past.
Position Sizing is recommended...
What is position sizing?
It is when you first add half your position to check If the market is saying you are right or wrong, if the market moves in your direction, you will add your second half and tighten your stop loss. This way you add two positions but one only when the market shows you that you are correct.
Example: Suppose your risk is 100 per trade, You first buy enough Qt to risk only 50 ( Typically with a larger stop) and if the market forms a green candle or another bullish sign, you add another Qt to risk 50 more ( Total risk 100) and your second stop loss becomes tighter ( most probably at the breakeven of the first position) this way you minimise your loss but ur reward is the same and even more. If your first stop gets hit, you accept your mistake and move on.
Hence, if one does go long, I personally am buying as close to the zone as possible and then will be adding more as the trendline breaks.
Volume isn't a key indicator here since it has been high in the past as the market approached this zone and still rallied upwards.
Targets marked on the chart.
Keep It Simple
this institutional buying zone where big players accumulate.
It has approached this range again giving a beautiful risk to reward ratio of 1:3 and more.
As seen in the past, on the break of this minor downward trend, the market rallies to the resistance zone hence we should follow the past.
Position Sizing is recommended...
What is position sizing?
It is when you first add half your position to check If the market is saying you are right or wrong, if the market moves in your direction, you will add your second half and tighten your stop loss. This way you add two positions but one only when the market shows you that you are correct.
Example: Suppose your risk is 100 per trade, You first buy enough Qt to risk only 50 ( Typically with a larger stop) and if the market forms a green candle or another bullish sign, you add another Qt to risk 50 more ( Total risk 100) and your second stop loss becomes tighter ( most probably at the breakeven of the first position) this way you minimise your loss but ur reward is the same and even more. If your first stop gets hit, you accept your mistake and move on.
Hence, if one does go long, I personally am buying as close to the zone as possible and then will be adding more as the trendline breaks.
Volume isn't a key indicator here since it has been high in the past as the market approached this zone and still rallied upwards.
Targets marked on the chart.
Keep It Simple
Note
Trade has moved in our favour with some good buying, bank nifty looking strong as well.... stay strongNote
I have liquidated and booked profits at the current level since I am not too convinced by the volume of the current move...Trade closed: target reached
According to me
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.