Intraday trade 19 June Reliance trend continuation.

Reliance continued the trend..Once again setup beautifully with good risk reward.

Reasons for trade 

1 Triangle  formation.

2 higher lows in structure and double bottom.

3. Price Above Vwap,Moving Average.

4 moving average squeeze with trendine.

5 Hammer and rejection from moving average.

So,entry 1686,stop loss 1683(below moving average).

What happened later?

        Exit at 1697,1700 seems to be a resistance.

Now risk was 3 and reward 11 , clearly almost 1:4 reward.

Good trade.But what happened after this is insane.

Let’s see.

It went up almost 100 point from our exit.Thats a lot of points.

But didn’t trail because market is uncertain,this happens 1 in 100 days and trying to catch this is foolishness.Definately you can trail small quantities.

Some tips 

1 When you are trailing the moving average is a good stoploss region.(below MA stop can be placed)

   2 don’t be greedy and throw the profit away,book what you get & re enter if you feel there is a chance.

3 Trailing till end of the day or excess trailing works well if the stock has broken major resistance or                 support, the larger time frames can be used to  decide whether to trail or not.Even smaller quantity trailing can do wonders if a stock moves like 100 points.

Thank you.

Only for educational purpose.