- as the index made a new on 25th Aug, MCX made a higher low, mostly just consolidated on lower volumes
- volume patterns in recent times are extremely bullish, wide range candles on upside, with massive volumes
- volumes on the recent pullback are very low, indicating no institutions are exiting
- low risk entry around 1620, with at 1575, about 2.75%
The thing with taking a counter trend trade is, there is a very high chance of trade failing, but if it works, risk reward can be really good
-Kotak bank is in a slump since long time, but it is trying to form a bottom in my opinion
for building positions, i recommend taking 50% entry above 1783, and 50% above 1789, keeping a sl below 1754
do not risk more than...
In this post, i discuss a simple way of when to start paying attention to a particular sector or a stock, with the example of IT sector
1) At point 1, as nifty is forming a bottom, IT is attempting to form a bottom as well, moving along with the index
2) As nifty continues to move higher, it forms a higher low at point 2, whereas IT has a big gap down and...
1) once a downmove gets extended from 10 and 20 ema's, we get a reversal extension on the downside
2) this is the time to start paying attention, start building watchlists
3) once this happens in index, real setups will start to emerge in individual stocks
4) stocks that breakout before the index, will be the true leaders of this upcycle
from January to Sep ' 22, this stock was all over the okasce, trading very wide and loose
from Nov 22, stock corrected, on decreasing volumes, and from March '23, range of selling candles started decreasing, and range of green candles started expanding, indicating buying pressure coming back into the stock
In the final leg of contraction, stock merely corrected...
Vcp breakout happened on 15th June from a big base
stock moved up on higher volumes and consolidated on very low volumes, indicating very little supply coming to market
Entry on small vcp bo
entry - cmp
sl - below 693
- confirmed stage 2 uptrend
- clear volume expansion when price moves up
- low volume pullback to 20 ema
- shakeout within the base
- price moving back up with a small gap and volumes
entry - cmp
sl - around 7500
There are two types of trades :
1)with the best structure
2) so beaten down, but risk reward is great
Why i selected this stock to trade?
1) traditional technical analysts will call this stock a laggard, because while nifty is at all time highs, this stock is nowhwere near its highs.
but if we look more closely, this stock bottomed on the same day as nifty,...
entry - cmp
sl - just 1% below, around 1000
this stock had many shakeouts within the base, volumes suggest selling climax has happened and buyers are getting back in
high chance of trade failing, but risk reward seems very attractive at this stage, with 1% risk, i do think 8-10% reward is probable in this structure
PSU banks are breaking out after long consolidations, first was bank of baroda, now canara bank
three contractions within base, recent shakeout, plus volume drying up are signs that the stock is now ready to move higher