Trade ideas
TATACHEM: Near Breakout, on the way to cross ATH.TATACHEM
The parallel channels drew in the chart:
PC-A = PC- B
PC-C = PC-D
All of the four PCs are exactly of SAME width
#WondersOfPC
At point R, levels of 1180, candles respected the resistance of ATH, and came down towards 1030.
There, the candles got strong Support of point S which is the midline of PC-C, and bounce back towards the levels of point R again.
Now today we are at the same levels of point R, conforming the BO of PC-C.
With this strength, we have a strong view that the candles will cross over the Resistance of ATH, and we'll enter new zone
Good time to enter at CMP, we may face some consolidation between 1180-1195, this levels also have resistance of midline of PC-D
for swing trade,
CB SL will be 1124
Near term target 1260
If view goes wrong, we will have better opportunity to pick more for LT portfolio at 1125, and at every dips.
And overall market holds strong from here, we can see stronger Breakout of PC-D
Focus on TatachemicalAs per my previous view on Tata chemicals (Jul 9 & Jul 24 published), moved nicely as per price action.
Tata chemicals given good closing just above the previous weekly high closing, which is a positive sign for this stock
As you can see, in weekly/daily time frames, it was travelled in a particular zone for long time and broke out the resistance and marked a new high in last trading session on friday.
More bullishness is coming in upcoming weeks.
Keep SL just below the previous zone resistance and go long
Targets given
[ Positional ] TATACHEM LONG BETr : R ratio is 1 : 2
Rest as per Charts
Note -
One of the best forms of Price Action is to not try to predict at all. Instead of that, ACT on the price. So, this chart tells at "where" to act in "what direction. Unless it triggers, like, let's say the candle doesn't break the level which says "Buy if it breaks", You should not buy at all.
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I use shorthands for my trades.
"Positional" - means You can carry these positions and I do not see sharp volatility ahead. (I tally upcoming events and many small kinds of stuff to my own tiny capacity.)
"Intraday" -means You must close this position at any cost by the end of the day.
"Theta" , "Bounce" , "3BB" or "Entropy" - My own systems.
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I won't personally follow any rules. If I "think" (It is never gut feel. It is always some reason.) the trade is wrong, I may take reverse trade. I may carry forward an intraday position. What is meant here - You shouldn't follow me because I may miss updating. You should follow the system I share.
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Like -
Always follow a stop loss.
In the case of Intraday trades, it is mostly the "Day's High".
In the case of Positional trades, it is mostly the previous swings.
I do not use Stop Loss most of the time. But I manage my risk with options as I do most of the trades using derivatives.
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TataChem 1HJust placed my idea in Position drawing.
Red Zone: Resistance or Breakout Zone
Grey Zone: Repeated Hurdles (Support/Resistance)
Green Zone: Support or Breakdown Zone
Note: BUY above Red Zone
BUY at Green Zone.
SELL at Red Zone or Trail at Grey Zone
Just follow the Entry & Exit. Trail SL after 1:1 to Cost + Brokerage.
Also you can ask for my views on any chart.