Rain industries is currently in a symmetrical triangle pattern resting on the 200EMA and is on a strong area of confluence which is acting like a support zone, it is also supported by a moving average right below which is the 50EMA which gives us 3 major support zones.
Looking deep into the volume of the consolidation, you can see that the consolidation was on low volume and a good green candle has formed with good volume showing buying at that level.
Normally when the market breaks out, we miss the best entry, to prevent that, we indulge in a riskier trade with the help of position sizing giving us maximum gain and minimum loss.
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.
Add to more on break of triangle
Target with a good risk to reward
Stop loss below 50EMA
Keep It Simple
Looking deep into the volume of the consolidation, you can see that the consolidation was on low volume and a good green candle has formed with good volume showing buying at that level.
Normally when the market breaks out, we miss the best entry, to prevent that, we indulge in a riskier trade with the help of position sizing giving us maximum gain and minimum loss.
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.
Add to more on break of triangle
Target with a good risk to reward
Stop loss below 50EMA
Keep It Simple
Comment:
Good green candle has formed, add to more positions and righten the stop... stay strong
Comment:
We are still surviving as stop loss has not been hit... stay strong
Comment:
stop loss has been hit, exit on a small loss