Thread by @Vcpequitytrader

Case Study 01- #WAAREEENER
(THE WAAREE ENERGIES LTD TRADE) 📈

How I caught this 12% move in this Young IPO BASE🚀

The Reasons behind selecting this stock to trade and how I executed it flawlessly are mentioned below:

- This stock came on my radar after the parent co. declared that it would be listing on the exchanges.

-After the IPO got listed, I glanced at the chart and saw that the stock, after an initial sell off in the first 30 mins, started making a base with the big red candle as the "MOTHER BAR CANDLE".

- As the price started trading inside the range of the "MOTHER BAR", it started making a strong demand zone level for the price which only meant one thing and that is that the selling pressure was getting absorbed at a much faster rate by the buyers.

Now, let's dive deeper into the price action of #WAAREEENER and learn how to catch explosive moves in these young IPO BASES.

But before we analyze the charts,

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#BreakoutStocks #StocksToBuy #StockMarketindia
#MuhuratTrading

Perfect analysis for this trade:

- #WAAREEENER price action analysis was simple after the initial support/demand base was formed.

Reasons:

- The price never retested the initial demand base which is a strong sign of buying strength.

- The price kept making higher lows which means that each instance of selling pressure was being absorbed by the buyers.

- The price was starting to contract in tighter zones after each instance of selling pressure which meant that the buying intensity was starting to ramp up at a much rapid pace.

- All that pent up buying pressure finally erupted as the price finally gave a breakout of that tight contraction zone with strong volumes and also closed strongly above the 21 EMA.

I entered on the breakout candle while keeping the breakout candle low as my intial SL.

Reasons for entering:

- Strong price action after the initial sell off

- Strong buying presence from the get go

- Strong volume buildup in key areas

- Strong price action after the initial demand base was formed

- Strong breakout candle with strong volumes

After the initial entry, most of the process was automatic.

Here are some key steps to follow before and after taking a trade:

- Enter a trade when it isn't too crowded

- Exit a trade when it becomes too crowded

- Put your SL in a reasonable spot, not too tight and not too wide

- Activate your TSL (Trailing Stop Loss) after the price has crossed a certain check mark after your initial entry to maximize your gains and minimize your losses.

I followed the same rules in this trade as I mentioned above:

- I entered when the stock wasn't too crowded as most of the people were busy cashing in their listing gains

- I entered with a small Stop Loss which ensured that I would loose small if the trade did not work in my favor

- I did not enter when the whole world was seeing the breakout of the major range of the "Mother Bar Candle"

- Those who entered might have been stopped out when the price dipped inside the range due to the uncertainty of the Indian Market that we are currently facing.

- This liquidity grab further propelled the price to move up and is currently making new highs.

My future Plans for this trade:

- Will keep aggressively trailing with 21 EMA

- If the price extends at a rapid pace and the gap between the price and 21 EMA expands then I will reduce my exposure and switch to 10 EMA for trailing

- 10 EMA will be my first TSL and 21 EMA the second one where I will exit 50% on both levels ensuring that I exit with a decent amount of gains.

"" I will keep updating this thread depending on how the trade goes""

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