Can somebody help me with this scenario?
I place a short trade in Futures few days ago and below points were matching with the checklist suggested:
Bearish Engulfing (prior trend- UP)
High was a couple of ticks above the resistance
Primary trend of the scrip- Downwards
RRR of 2:1
Volumes: Pretty much more than last 10 days average
The stoploss as guided was selected the higher of the two wicks, which also happens to be the 52 week high for that scrip and target was the support. I’ve been holding this for 9 trading sessions now but it is constantly giving negative returns and eating away my capital (M2M). Should I continue holding it? Kindly advise…
Agree that you require analysis to back your trade. After all the analysis is done and trade is taken, you have to monitor the trade in real-time. Understand the price movement after the trade is taken and try to see it independent of your analysis. Manage your trade accordingly after that.
Not all the Time.
But, yes In many cases it gives the views about Upcoming trends.
Don’t Just take the delivery Percentage as Individual entity, Keep an eye on the pattern is it Increasing or decreasing from previous Trading sessions and find out the average, other factors also count Like Overall Market trend, Sector trend, stock performance.
Investors and swing Traders Look for Good delivery Percentage stock so, that Operators Driven manipulation can be avoided.
You can see ITC with Good delivery Percentage above 60% mostly from last 1 month but stock is not able to Cross 270 levels.
You can see TATAGLOBAL with less delivery Percentage of 43% from last 1 month but still stock is making new High Everyday.
Thank you Srinivas.
I’ve been monitoring the trade and price movement in the real time. But if you look at the TA module on Varsity it is recommended to do nothing till the stoploss is breached or target is met after confirming with the CHECKLIST.
All I wanted was to get a sense from Experienced participants on the “Probability” of a trade going against the checklist even after meeting with most of points. Would you mind sharing your inference from the price action of the stock in question?