Hi Dinesh,
I presume the Cipla chart which you have posted here is of Intrady with timeframe of 15 min and the horizontal line (red) plotted by you is ATP of yday. If ur answer is yes then here is my views...
I hv edited your chart with paint brush and marked the trading oppertunites by circle with numbers. The explanation to each circle with number is given.
1). The first trading oppertunity (15min) candle touch the ATP and closed above the ATP which indicates buy and we place buy order on the High price of the candle with stop loss of Low price of the candle. We didnt had the trading oppertunity. But the next 15 min candle again touches the ARP and closes above the ATP indicating buy. But we dont enter as the high price is not higher than the previous ATP candle high. This is just a precaution to avoid whipsaw and unnecessary stop loss hit.
2). The second oppertunity circled by (2) closed below ATP and we go short by placing sell order on the low price of the candle and we meet our traget of Rs.1000/-
3). The third oppertunity circled by (3) closed above ATP but subsequent candles or price didnt touch the high of the candle hence no trading oppertunity. Remember the point explained in point 1 with refernce to the next candle touching the ATP and closing above the ATP but we didnt initiate the trade.
4). The fourth oppertunity circled by (4) closed below ATP and we are in trade and circle 5 & 6 closed above and below but we dont initiate trade as we are already in trade and the rest of the candle closes below ATP and we get Rs.1000/-
The Rs.1000/- gain is minimum as i said earlier and it can be reduced or increased according to the individual risk taking appetite.
Hope the above clarifies.
Since i cant able to post the chart directly due to size authorisation have attached the chart for your reference.
Cheers,
Karthik
PS: To post this attachment i have deleted the earlier attachments.
Karthik,
Pl discuss.
U R already in short trade as per candle 4.
Suppose,subsequent to candle 5,the price goes above the High of candle 5,will there be a trade or Not?
Which also means the s/l on trade at candle 4 should be be the High of candle 5 & this s/l is Reversible s/l.
Or u wait with yr original s/l of candle 4.
We r discussing a Hypothetical trade here.