12161 Big pole and flag set up
Trade thesis
1. Technical Analysis
a) Pole and flag set up
b) Volume spurt
c) Good engulfing candle
d) vwap breakout
e) Long above 1033 confirmation of long after 15 min candle close
f) SL compulsory
g) Fib fan providing support for long
2. Risk Analysis and management
a) Personal risk tolerance level (PRL): Identify the personal comfortable risk based on dollar amount of total capital or on unemotional induction point.
b) The PRL should not exceed 5% per trade even in high convention stock.
c) Allow diversification across different asset to minimize the risk.
d) Define the optimal position sizing per stock and commonly used 1-2% risk on total capital.
d) Assess the trade viability during trade life cycle, such as overall stock specific news, market conditions, sectorial assessment or any major global scenarios.
e) Always use stop loss in place (SL).
3. Fundamental Analysis
a) Debt free organization
b) OPM% and operating profit slightly decreased in last 3 quarters
c) OPM% above 18
d) Continuously increasing reserves
e) positive cash flow
f) Strong FII
4. Trading mindset requirements
a) Focus on process and not on results
b) Strict disciple with entry rules, exit criteria
c) Plan the trade and trade the plan but dont trade based on emotions or impulsive decisions.
d) Acceptance of results either win or loss is the right criteria for becoming successful trader; otherwise money, time and rotation of stocks will be blocked with no stoploss system.
1. Technical Analysis
a) Pole and flag set up
b) Volume spurt
c) Good engulfing candle
d) vwap breakout
e) Long above 1033 confirmation of long after 15 min candle close
f) SL compulsory
g) Fib fan providing support for long
2. Risk Analysis and management
a) Personal risk tolerance level (PRL): Identify the personal comfortable risk based on dollar amount of total capital or on unemotional induction point.
b) The PRL should not exceed 5% per trade even in high convention stock.
c) Allow diversification across different asset to minimize the risk.
d) Define the optimal position sizing per stock and commonly used 1-2% risk on total capital.
d) Assess the trade viability during trade life cycle, such as overall stock specific news, market conditions, sectorial assessment or any major global scenarios.
e) Always use stop loss in place (SL).
3. Fundamental Analysis
a) Debt free organization
b) OPM% and operating profit slightly decreased in last 3 quarters
c) OPM% above 18
d) Continuously increasing reserves
e) positive cash flow
f) Strong FII
4. Trading mindset requirements
a) Focus on process and not on results
b) Strict disciple with entry rules, exit criteria
c) Plan the trade and trade the plan but dont trade based on emotions or impulsive decisions.
d) Acceptance of results either win or loss is the right criteria for becoming successful trader; otherwise money, time and rotation of stocks will be blocked with no stoploss system.
Trade active
chambalfert is also at same set up with better evaluations
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.