Today I had a small trade in Mindtree which I thought is worth sharing on TV.
Mindtree has been in a downtrend on the daily and hourly charts.
I watched it consolidating yesterday. Today it started the day with a gap outside yesterday's range and quickly retraced back to the range. It was first sign of weakness.
Second Candle A had a nice bounce from the support but that was not enough to initiate long. When the stock is in a long term downtrend , I can't buy just on the basis of a candle on a lower time frame chart.
Candle B bounced from 449.50. It was huge, positive and above average response. OK.. we can take some risk if this trend continues but no continuation seen.
I placed a sell stop order just below 449.50 along with those fellow traders who bought in candle B and placed their stops below the low of this candle.
In the very next candle sell order was triggered. I placed a stop loss order just above the high of candle B.
The very next candle C was scary for sellers like me, a long wicked with nice .
Although I did not had a chance to sell at the low of this , I decided to trail -- remember an old saying, " Let you profits run".
I trailed every 15 min. candle and got stopped quite near the low of the .
Although the trade looks small it was a little short of 1% the stock's value.
This trades quickly turned into favor but this does not happens always. So its good to follow the trend; look for patterns and ranges and play as per convenience.
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Trade safe, stay healthy.
Pls tell how buy at support