LAURUS LABS LTDLong
LL breaks downtrend
Updated
Laurus Labs looks bullish
1. Break of downward trendline
2. Break of Resistance zone on strong volume
3. Strong bullish candles which
are validated by volume
4. Weak bearish candles and low
volume pullbacks
5. Trend line and Support Retest
This is a riskier trade and hence I would advice a position sizing method that will minimise risk and maximise reward.
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.
NOTE: Nifty Pharma has also just broken out and made a similar pullback.
Target: T1 and T2
Stop loss: 323.05
1. Break of downward trendline
2. Break of Resistance zone on strong volume
3. Strong bullish candles which
are validated by volume
4. Weak bearish candles and low
volume pullbacks
5. Trend line and Support Retest
This is a riskier trade and hence I would advice a position sizing method that will minimise risk and maximise reward.
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.
NOTE: Nifty Pharma has also just broken out and made a similar pullback.
Target: T1 and T2
Stop loss: 323.05
Note
Entry has been triggered, add to more positions at 3:15 PM once the green candle is about to closeNote
Liquidate on a small loss
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