Look for Low risk, High reward, and High Probability setups-
Things to Remember while Trading with the Trend
1. Know what the trend is. 2. The best trades are made in the direction of the trend. 3. Assume that the main trendline or moving average will hold. 4. The longer the moving average is, the better it defines the trend. 5. Wait for the pullback. 6. Don’t chase the market. 7. Don’t fight the market. 8. Even in the strongest trends there should be some retracement. 9. The closer the market is to the trendline, the better the risk/reward ratio is. 10. Use ADX to determine the strength of the trend. 11. Higher the level of ADX , the stronger the trend, below 20 consider the market to be choppy 12. Hold trades longer in a strong trend. 13. Wait for confirmation of a trendline breaking before reversing position. 14. Know where the Support levels are. 15. Place stops outside the Support levels.
I'm a newbie so pardon my silly question: If for the last 4 times, it hasnt broken the resistance, then why would it break now? 4/5 times (80%) it will respect resistance and 1/5 chance it takes off... is this a fair statement to make?
tekkiesuresh
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@bubblyBird15108 Everytime a stock touches resistance, it comes down because of selling pressure at the resistance point.Eventually the selling will exhaust itself and the stock will break the resistance.The more times a stocks touches resistance or support, the weaker those lines become.
arpitkumarsinghmgr
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@bubblyBird15108, because this will break the downtrend and if some good news come it will definitely surge upward and three time it has been tested so if everything is good it will definitely boost
NaveenGr
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@bubblyBird15108, You are correct in assuming that there is higher chances of it 'not breaking the resistance and following past action only'. There can be infinite reason of a stock breaking a resistance but ultimately it comes to buying overcoming selling and our focus should also be on this only, rest is just noise.
In trading we consider risk/reward and the setups success rate. If these are favorable you should sell/short near the resistance. If according to your analysis breakout gives good chance then you should go long.
prasad12795
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IDFC is completely fallen. No strategy works for intraday. It’s all about luck and observation. It’s easy to explain and show graphs after the result. It’s difficult to guess future graphs.
Rvkachhadiya
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@prasad12795, Monthly chart For long term Not For Intradat sir
saran_raj
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Sir volume is drop and patten is low high formation .i think it ill come down side only