Risk Management trade in Reliance.
Updated
Hi there!
Let's talk about this small trade in Reliance.
Reliance CMP:- 2524.05
-->From 30th sep to 1st Dec Reliance has formed HH and HL and was in Uptrend.
-->Since then Price is in correction and approached 0.618 Fib level of that up wave.
What's in my mind?
-->If we observe the price action there is an untested demand zone at this 0.618 Fib area.
-->If we observe the upper 2 arrows those mentioned candles and and their volumes saying that there was some distribution happened may be reason for this correction
-->If we observe the bottom arrow that mentioned red candle with high volume is a support breakdown and may be the stop losses of previous long trades
What's my point?
-->Even if price continues to move down I'm expecting a pull back before that and this Idea is actually trading that pull back.
-->If my analysis goes wrong and price breaches this demand area I will exit with my stop loss and enter at next demand areas with new confirmations.
Entry setup:
Enter Long: 2480
Stop Loss : 2425 (70 rupees per share and one can plan their risk accordingly)
Managing the trade:
If the trade goes in our way
*Exit half Quantity 1:1 Risk/Reward Target and Shift to SL to cost
*Exit Half of the remaining with 1:1.5 or 1:2 Risk/Reward (by looking at momentum) and trail the SL.
*Exit remaining with trailing Stop loss.
*SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY.
*NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES
***If you like my analysis let me know by giving boost or a comment.
I will be updating.
Let's talk about this small trade in Reliance.
Reliance CMP:- 2524.05
-->From 30th sep to 1st Dec Reliance has formed HH and HL and was in Uptrend.
-->Since then Price is in correction and approached 0.618 Fib level of that up wave.
What's in my mind?
-->If we observe the price action there is an untested demand zone at this 0.618 Fib area.
-->If we observe the upper 2 arrows those mentioned candles and and their volumes saying that there was some distribution happened may be reason for this correction
-->If we observe the bottom arrow that mentioned red candle with high volume is a support breakdown and may be the stop losses of previous long trades
What's my point?
-->Even if price continues to move down I'm expecting a pull back before that and this Idea is actually trading that pull back.
-->If my analysis goes wrong and price breaches this demand area I will exit with my stop loss and enter at next demand areas with new confirmations.
Entry setup:
Enter Long: 2480
Stop Loss : 2425 (70 rupees per share and one can plan their risk accordingly)
Managing the trade:
If the trade goes in our way
*Exit half Quantity 1:1 Risk/Reward Target and Shift to SL to cost
*Exit Half of the remaining with 1:1.5 or 1:2 Risk/Reward (by looking at momentum) and trail the SL.
*Exit remaining with trailing Stop loss.
*SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY.
*NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES
***If you like my analysis let me know by giving boost or a comment.
I will be updating.
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