Futures Holding time frame when trading using TA

General
1

Hi,

Can somebody help me with this scenario?
Hi,
I place a short trade in Futures few days ago and below points were matching with the checklist suggested:

  1. Bearish Engulfing (prior trend- UP)
  2. High was a couple of ticks above the resistance
  3. Primary trend of the scrip- Downwards
  4. RRR of 2:1
  5. 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…

2

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.

Price action is decisive.

3

If You can share the Stock name, That would be more helpful to Help you.

If the position is giving Loss from 9 Trading sessions. I would have closed it in early stage.

1 Like
4

Sure…TechM…
Thanks!

5

Look at the IT Stocks Most of Them are Trading at 52 week High.

And Tech Mahindra is also looking to Break it’s 52 week High in upcoming Trading sessions.

Delivery Percentage is 52.22% Investors are bullish on Stock.

Stock taking support at 490 and Trading above it’s 5 EMA & 20 EMA.

I wish I totally go wrong on this and you Book good.

1 Like
6

Does a high delivery % mean a bullish trend?

7

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.

2 Likes
8

Thank you, sir.

1 Like
9

Don’t call me Sir. Brother is Good. :+1:

2 Likes
10

Done bro, done.

11

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?

12

I completely agree with you. O.I has also increased by 7 odd percent with the increase in the price. Seems like I should book the loss and exit.

13

keep you analysis updated with current support and resistance level,
and act as per those

14

I am not agree with your third point that it is in downtrend. if you see weekly chart it is in uptrend I have bought future at price 500.2. let us see what happened