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vanathi
Jan 12, 2017 12:11 AM

MotherSumi - Will it break the channel? 

Description

After facing strong resistance at 337 mothersumi is trending inside the channel. Volume is gaining, momentum is reducing. Interesting to watch. Will update target, stoploss, entry in comment seeing price action.

Trade active

Short at 327 with stop loss 331

Trade active

Comment

This week I am checking what mistakes I am doing in trading entries. Trading entry against the main index and trading entry along with the main index.

Comment

Thursday when the price action breaks the channel, i entered trade.(Trading against the main index). Friday morning stoploss got hit. As Nifty started to prepare for a retracement, I enterd again. Needs more observation as I expect nifty's retracement will last for 2 or 3 days only. in.tradingview.com/chart/QtD56IkU/ Daily chart observation shows when RSI is below 60, price action at resistance along with bearish candlestick pattern makes it to move down towards support.

Comment

1/17/17 spinning top with high volume. Couple of days I will know whether my stoploss needs fine tuning.

Trade closed: stop reached

Lesson 1 : Against the main index.
Lesson 2 : Any entry which is too early or too late is wrong.
Lesson 3 : Against Dow tenet "A trend is assumed to be in effect until it gives a definite signal of reversal"
Comments
UnknownUnicorn646072
wher is momentum indicator
vanathi
@rupambose32, Yes it is RSI
UnknownUnicorn646072
it is rsi indicator,not momentum
gargindia
Hi, can you explain that market took your SL at 331, then how come your tread status is active ?? i observe that you trade in the direction of the market but you keep 3 to 4 pip SL and market took you out, on what bases you decide your sl ?? thanks
vanathi
@gargindia, This week I am checking what mistakes I am doing in trading entries. Trading entry against the main index and trading entry along with the main index.
gargindia
@vanathi, thanks for reply, good luck in your trading , fi you like you can discus the strategy.
vanathi
@gargindia, One hour back Nifty confirmed its downtrend. Yesterday's entry for mothersumi hit the stop loss(this trade is against the main index) Today's entry is along with the main index. I am verifying the timing to enter the trade.
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