Time Period= 1 June till date
Chart= 15 min.
1. Divergence on Stochastics associated with inverse price movement
2. Entry @ break above/below immediately preceding "minor" swing high/low
3. Stop @ below/above immediately preceding "significant" swing low/high
4. Target @ immediately preceding "significant" swing high/low point
5. Would not trigger entry on gap openings, wait for price to pull back to entry or else trade will be missed
6. After entry, if target missed by few points then close position on break of a succeeding minor swing or consolidation pattern, whichever hits earlier
7. Minimum Risk to Reward Ratio should be 1:1 or else trade will be missed.
8. No support or resistance from higher time frame taken into account
9. All the entries taken with Stop loss and Limit orders.
10. Carry forward as long as target or stop is not hit.
Profit on single lot= 243*75=18225
For earning 1 Lac or more one should have traded at least 6 lots.
* In Trade 2 and 6 target was missed by a few points so as per rules the position is closed at the break of succeeding consolidations pattern.
#Trade missed @ Divergence 3 because of poor RRR
Although this strategy yielded 100% success with no Stops hit yet it should be noted that we totally missed the shorting opportunity from 9700 to 9565 on 22nd June. The strategy might be successful in sideways to moderately bearish/bullish environment. Will it be good in a trending market is still a question mark for me, perhaps we will get the answer in coming days.
Kindly cooperate if am wrong in my calculations somewhere but i suppose the purpose of this post is clear to everybody.
Trade safe, stay healthy.
Disclaimer: I am not an expert in Elliot Wave. Try your own count if it works better.The count is based upon Elliot Wave Oscillator. I am using 5 min. chart because the waves are quite visible on this timeframe. This view is for short term only.
As this count suggests, for the last downleg from 9698, we are currently in wave 5. There are chances that it will extend beyond the low of wave 3. But as we see Wave 3 is an extended one, so wave 5 may not be as big as wave 3. If we take 1:1 price extension from June2017 highs (9709), for an a-b-c type correction, the potential target comes out to be 9550, which could act as a possible support. Wave 5 may end at this level followed by a swift pull back.
Time constraint fellows. From now onwards I won't post live on this strategy. Only post trade off market analysis would be done.