Comments are there in the chart. What I want to say is that Bulls may say something from here so I have highlighted two levels. 4985.6 above which shorts must book profit so that becomes trailing stop loss for shorts(Logic discussed in the chart). Also one should get into buying if 5 day avg (5070-yesterday's 5 day avg) which comes down sharply to 5050 (today closing time) is taken out upside. so 4985.6 and 5050(will fill recent gap too) becomes important levels for bulls. 4910-4920 has provided support so far so if that is broken then next support is around 4800.
This chart does not have any recommended bet. But I have mentioned three important levels from which three bets are recommended. one is for trailing stop loss for shorts which is 4985.60, one for going longs i.e 5050 and one for adding more shorts or initiate new shorts below 4910.
Recommended Bets
1. Hold shorts with 4985.6 spot nifty as trailing stop loss.
2. Another important level comes from the chart is 5050 so Recommended bet will be to buy above 5050 with stop loss. I am yet not ready for this so i will update sooner if this trade is going into play. I will update stop loss for this trade sooner if market wants to take this trade.
3. Another recommended bet comes up from the chart is to sell below 4910 spot prices stop loss 4985.60 spot prices. This is based on the red counts as red count says a new fall may have started and has a long way to go as it will have 5 more down waves which may make a new low. Or if not at least market does not have any support below 4920 till 4800 so if support of 4910-20 is broken at least we can expect 4800 which means risk reward ratio is still handsome for short trade if that comes into play.
P.S. I will have 4990 spot nifty level as trailing loss . I always do that because I have read somewhere (I do not know which book) to have a stop loss 3 points above the mentioned level. sometime it works sometime it does not but going with the books I always keep my stop loss 5 points away from mentioned level.
Booked profit in all shorts.
ReplyDeleteNow 5 day avg > 13 day avg
5070(will comedown to 5050 today closing) > 4980. Market has taken out 4980 today with gap up opening. Today low is around 4970 - 10 points below 13 day avg. I would like to jump bit early as first sign of bullishness is shown by bulls. Now a follow up confirmation required closing above 5050 which is final set up to enter longs. But i will not like to wait for maket to close above 5050 but will like to jump in bit early.
So now I would like to change my recommended bet a bit for longs.
Buy around 5015-20 which is current market price 50% and buy 50% when you get confirmation above 5050. Keep stop loss of today's low of 4970
first 50% position thus will have 50 points as stop loss and rest 50% position will have 80 points as stop loss. for full 100 % position thus will have 65 points as stop loss.
Kind Regards,
Nirav Shah
Wrong trade wrong trade............
ReplyDeleteLesson again enter with right set up. Do not jump in early. Patieceis the key. Good that only 50% i entered in early and had 50 points stop loss in few mins.
A very bad trade.
Kind Regards,
Nirav Shah