Hello Captain And All Friends. Most Of Us Missed Buy Trigger, But SavantJi Gave Us Different Weapons, One Of Them Is:-
Buy On Retracement For Strong UP Trending Stock: Stock Has A Strong Uptrend & It Made A Brief Retracement. Therefore, Stock Has A Greater Chance Of Going HIGHER In The Short Term - ext 4 To 5 Days.
Suggested Strategy: Buy A Little Above Previous Trading Day's High & Place A S/L A Little Below Previous Trading Day’s Low
But As A Beginner I Had Different Questions In My Mind, Basic Questions Were Like Following:
- When They Retrace?
- How Much They Retrace?
So I Was Playing With 'Fibonacci Retracement Lines' To SomeHow Know The Answer To Above Questions. But Knowledge Doesn't Flow WithOut Master, So I Had Long Hours Conversation With SavantJi To Understand This Concept. Today I Studied One Example Putting These Finding Below (BalRaj Co-Incidently It Is YesBank!!! It's On My WatchList
) :
- We Watch The Stock Which Is Making Rally i.e. Higher Highs And Higher Lows, OfCourse Bullish CrossOver Is Already In Place.
- Then We Take Lower Point From Where Rally Started(We Are Not Talking About Higher Low Simply Low Of The Day From Where Stock Started Moving Upside), And Adusting Our Higher Point As Long As Stock Is Making Higher Highs. Now Different Levels Are Plotted Automatically By Softwares.
- In This Example I Have Used 0, 38.2, 50, 61.8, 100% Levels One Can Add Different Level If They Want.
- Just Observe How Different Stocks Are Behaving At Particular Level, That Should Tell About Your Entry Points.
- Suppose Some Stock Is Breaking All Retracement Levels, By The Time We Might See Bearish CrossOver So In Such Scenario We Are Buying Stock In DownFall So Be Careful.
- That Is Why SavantJi Mentioned Stock In
Strong Uptrend i.e. Stock Is Running From Few Days To Week Then It Takes A Rest For A While. Goal Is To Take Entries At Those Resting Levels. This Avoids Buying At Higher Price.
- Position Sizing With Approriate S/L Are Must If Something Goes Wrong, This Way We Are Also Out Of Fear Factor.
Here Is A Graph, I Have Sliced It Up Depending On Rallies Since 09 Mar 09 To 12 May 09. SavantJi Please Comment If There Is Any Mistake Or Any Need Of Improvement On This Concept And Thanks A Lot For Guidance.
Thanks.
Oh Forgot To Mention At Point C (Or Retracement) Please Remember What SavantJi Said:
Buy A Little Above Previous Trading Day's High & Place A S/L A Little Below Previous Trading Day’s Low