Nicely formed Channel > possible Trade !Bank Nifty has formed a beautiful channel which offers a short trade at current level as it has touched the upper boundary and traded above it but closed below and the red candle have confirmed it. So One can short it at the current level with SL of recent High. It offers a good Risk to Reward Ratio.
Entry 20800
SL 22150
Target 17200
Risk/Reward Ratio 2.70
However it works as a trap for small trader and SL triggers one can reverse the position to buy for the target mentioned in the chart.
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
Riskreward
Torrent Pharma continuation trendOn daily time frame, stock is showing really good long setup with a Symmetrical triangle which is indicative of continuation of bullish trend
Since , Nifty Pharma is taking on a ride and pharma stocks are hitting through the roof.This will be a good long bet in the bearish Market.
Initiate a long trade as soon as it breaks the last high of 2525 with a stop loss of 2440.
Volatility is expected since the markets are very choppy and there is a lot of noise.
These are solely my views. Trade wisely
This is simply to draw your attention, ITC.This is simply to draw your attention , ITC.
Low - 134.85
CMP - 151
CMP - Low = + 16.15
Logically speaking, there is a risk of losing 30% and reward 70% for investors as following trade setup:
Buy @ 148, and 2nd Buy @ 136 nearby with stop loss below low.
The final target for a long run level 220 above, and easy target at 178 .
Technically, We will get a price of this stock again 135 nearby shortly to attract the eye for investors.
Sunpharma needs a momentum boosterSunpharma has to buck up momentum here. The advances are forming narrow candles, RSI is not quite pulling up, if the momentum fails to pick up in a session or two then this whole move up may be a corrective and a fresh sell off may be witnessed. Bearish view may be negated above 415 closing basis.
BHARATFIN Short Setup [Intraday]NSE:BHARATFIN Short at 939.75 with SL at 947 and TP 925.25.
Note:
Consult your registered adviser before taking any decision.
Always risk 1% of account size per trade, adjust the position size accordingly.
NIFTY Analysis [Potential Zones] & Risk Management RulesNSE:NIFTY has dropped more than 10% since 03-June-19 and the sharp fall will definitely provide long term investors and institutions a buying opportunity. The chart shows the zones which the the market could potentially react from.
Technical analysis or market timing is not the only key methods to successfully trade or invest, its a combination of pre-defined set of rules of risk management principles for losing trades and the ability to have the patience with your winning trades.
RMS rules for Intraday traders:
1) Risk 1% of the account size on each trade, not more not less.
2) Find maximum 3 trading opportunities each day. Make sure you find those high probability trades and place 3 trades on each trading day.
3) Risk/Reward at 2:1.
4) ALWAYS PLACE A STOP LOSS. Placing a stop loss separates a novice from a professional.
5) Do not forget rule no.4
SBIN Short Setup [Intraday]NSE:SBIN looking for a quick reversal as the stock has moved up 4% from today's lows due to overall index recovery.
Expecting a sell from 275.25 with SL 276.55 and three potential targets. More favorable target will be the 1st one as its a 1:1 rr and as the trade is against today's move in a short period of time.
Note:
Please Consult Your Financial Advisor Before Taking Any Decision
Always risk 1% of account size per trade, adjust the position size accordingly
Rectangle Channel Breakout The stock has formed "Rectangle Channel" and trading above it. This simple patter offers an opportunity to trade with a reasonable Risk to Reward ratio of 3. One can go long at 1193-1195 with SL of 1168 and can expect a target of 1265 in coming days.
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
TCS Long Setup [Intraday]
NSE:TCS has a 8 point demand zone set at 2180 that sets up for a long trade at 2178.90 with SL at 2169.10 and tp at 2198.60
Intraday trades should be a 2:1 RR although the move towards 1st tp will indicate the strength towards 3:1. Trailing methodology can be adopted once TP is achieved.
Note: Risk 1% of the account size per trade.
Logical levels of TCS In an uptrend, when you buy in excess below value or somewhere in the bottom half of the value area, the take profit level is always at the control price. When an opportunity arises to buy just above the control, the take profit will be at the value high. The protective stop will always be below the tail of the smaller rejection value area on the lower time-frame that is used to enter the trade. The risk will always be smaller than the reward unless you are buying extremely close below the control price.
The Power of Hard StopsThere is general perception among the traders that if you place a stop loss order, it 'll be taken out sooner than later.
Even I published similar idea in one of my posts (I ll tag below later).
So "Stops get taken" is the general concept. Is it valid or not? Let us check with a simple logic and a few assumptions.
I am using a simple assumption that stops get taken but not always. Let us take generally accepted 50% rule.
It means if you place a hard stop in the market in 100 trades, it will be taken away in 50 trades.
My second assumption is that the trader knows his edge in the market. Which means he knows when to take a high probability trade AND knows money management (takes number of shares as per his risk on capital) and risk management (dun take more than 2% risk on his capital in a single trade).
The third assumption is that the trader takes 1:2 risk to reward ratio in each and every trade he takes.
So, with all these assumptions a trader enters in a market and takes 100 traders (may be in a month or more whenever his edge calls for a trade).
As per our 50% assumption he loses in 50 trades, i.e, 50*1=50 pts. For the remaining 50 trades he made 50*2=100 pts.
So Net he made 100-50=50 points.
So according to this hypothesis a trader would never be in a losing position even if he places hard stops in the market.
I think those traders who use hard stops for EOD position lose more frequently than those who go for 1:2 target, coz the target in the latter is highly likely to be achieved. Opening a position in the morning and holding it till EOD can make a jackpot on some days while take big stops on most days especially when market is not trending.
Well it all depends upon the trader's style.
For me personally, the 1:2 profits are good for those who want to trade for a living. Stops are my insurance in a trade, or THE ONLY THING IN TRADING THAT IS IN MY CONTROL.
I hope it makes sense to most traders and might change the perception about stops for some of them.
Trade Safe, Stay Healthy
Keep liking
Regards
Double Bottom : Good Risk to Reward TradeAshok Leyland has formed double bottom and showing signs of reversal. It has a reasonable PF catching the price frequencies and is available on the LML offering a good entry. It has formed a double bottom with divergence on MACD which is quite reliable setup. Heiken Ashi has turned to Green also. One can buy the stock with the following details
Entry current Price 79,50
SL 77.4
Target 86.25
Risk/Reward Ratio above 3.21
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.