An educational #Thread on what type of trades 1 can take & what r the rules for it.
Majorly there r 3 types of trades a trader takes :-
* Breakout Trade
* Breakout Retest Trade
* High risk reward contra trades
Disc. - All the #Stocks discussed are for educational purpose!
1/n
Majorly there r 3 types of trades a trader takes :-
* Breakout Trade
* Breakout Retest Trade
* High risk reward contra trades
Disc. - All the #Stocks discussed are for educational purpose!
1/n
#Breakout Trade!
A Breakout trade is usually a trade where the price breaks a strong resistance/supply level after consolidation. These r considered strong stocks.
To add conviction to our trade we check volumes, RSI, RS etc. for confirmation.
Let's understand with e.g :-
2/n
A Breakout trade is usually a trade where the price breaks a strong resistance/supply level after consolidation. These r considered strong stocks.
To add conviction to our trade we check volumes, RSI, RS etc. for confirmation.
Let's understand with e.g :-
2/n
#ADANIPOWER
It has broken strong resistance level of 135 with strong volumes on daily chart with RSI crossing 70, Prev. swing high which adds more conviction in the trade & makes it a high probability trade.
Suggestion - Add 50% qty on breakout & rest 50% wait for retest.
3/n
It has broken strong resistance level of 135 with strong volumes on daily chart with RSI crossing 70, Prev. swing high which adds more conviction in the trade & makes it a high probability trade.
Suggestion - Add 50% qty on breakout & rest 50% wait for retest.
3/n
Breakout Retest #Trade
A Breakout retest trade is usually a trade where the price breaks a strong resistance with volumes, strong RSI & then retest the same price level with low volumes & RSI not breaking 55 on D which signifies a true retest.
Let's understand with e.g:-
4/n
A Breakout retest trade is usually a trade where the price breaks a strong resistance with volumes, strong RSI & then retest the same price level with low volumes & RSI not breaking 55 on D which signifies a true retest.
Let's understand with e.g:-
4/n
#timken INDIA
It broke the strong resistance level of 2130 with strong volumes, RSI after long consolidation. After breakout it has retested it with low volumes & RSI abv 55.
Suggestion - Good risk reward here but 1 should keep S.L at breakout candle low i.e 2084 on clbs.
5/n
It broke the strong resistance level of 2130 with strong volumes, RSI after long consolidation. After breakout it has retested it with low volumes & RSI abv 55.
Suggestion - Good risk reward here but 1 should keep S.L at breakout candle low i.e 2084 on clbs.
5/n
High risk reward #Contra trades!
These are trades which may seem against the trend, traditional rules of trading but where r:r is good & der is a strong reversal 1 can take the risk.
Provided the reversal should have a strong bullish candle with volumes & r:r atleast 1:3.
6/n
These are trades which may seem against the trend, traditional rules of trading but where r:r is good & der is a strong reversal 1 can take the risk.
Provided the reversal should have a strong bullish candle with volumes & r:r atleast 1:3.
6/n
#Paytm
Most people will avoid a trade on this currently but why to miss a good r:r opportunity which has high reversal probability as bullish engulfing with strong volumes & a +ve RSI divergence after steep downtrend.
Also r:r is 1:5 is we take gap as trgt & 520 as S.L.
7/n
Most people will avoid a trade on this currently but why to miss a good r:r opportunity which has high reversal probability as bullish engulfing with strong volumes & a +ve RSI divergence after steep downtrend.
Also r:r is 1:5 is we take gap as trgt & 520 as S.L.
7/n
A lot of people are confused on when to take a #Trade hence explained with practical e.g's in which scenario's to take a trade with rules.
This is not a holy grail #strategy but 1 can use it to enter trades timely with conviction.
THE END.
Feedbacks, views are appreciated.
This is not a holy grail #strategy but 1 can use it to enter trades timely with conviction.
THE END.
Feedbacks, views are appreciated.
#Adanipower
Gave a good buying opportunity Intraday when it filled the Gapup & from der 🚀🚀
Hope you all learned as well as earned 🤠
Btw last 2 day big volumes so now ATH candidate 👍
Gave a good buying opportunity Intraday when it filled the Gapup & from der 🚀🚀
Hope you all learned as well as earned 🤠
Btw last 2 day big volumes so now ATH candidate 👍
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