Thread by @JayneshKasliwal

SWING TRADING STRATEGY FOR RANGE BOUND STOCKS

A Thread :
Using Concept of Support and Resistance
Using Minimum StopLoss

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THESIS:

📌We are looking for stocks that are in consolidation
📌These stocks when hit demand zone provide excellent Risk Reward opportunity
📌These will be all key moving averages hence will not be in momentum

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How to draw?

📌Look for stocks that are in consolidation for a very long time
📌Use Rectangle tool to make a range for the box from high to low of the price
⌛️Keep alerts at higher point of support and Buy when the alerts hit .
📌We are using the simple concept of Support.
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Entry Rules :

⏫Entry Should be as close to support as possible
⏬To keep Minimum Stoploss Its Advised to Buy Near support and not in between the range
✅Bigger the consolidation , stronger the support
🛑Can be used for Longer form of trading , and not Swing Trades
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STOP LOSS
1. Ideally your stoploss should be max 8% from your buy point
2. The closer you buy near support , the smaller the stoploss
3. Do not buy in between the range as you will get stuck in between for a long time
4. Moving Averages dont work as stoploss in sideways
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TARGETS :
Risk Reward 1:2 will easily be acheived
One can even wait for box breakout
Generally Stoploss in my cases was less than 5% when buy point was accurate hence Reward was > 1:3
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Fresh Trades using the same Concept
#SMCGLOBAL #JSWSTEEL
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