Hi Chaitanya,
Let me explain this with an example. In Chapter II, I have given the Buy Triggers generated today. Let us take the example of GTLINFRA. Today GTLINFRA has closed at 37.20 (NSE price) and reached a high of 38.65. It has a made a low of 34.10 on 22-7-09. Using these values we calculate the Target and SL as Follows:
STOP LOSS = RECENT LOW = 34.10 (I have rounded this to 34, as we should have SL a little below calculated value).
TARGET = 2 times High minus Stop Loss = 2 X 38.65 - 34.1 = 77.3 -34.1 = 43.2
This is the way I calculate initial SL (There are other ways of calculating SL).The trailing SL will be same as the initial SL till a new LOW is made during retracement which is higher than the initial SL. Once a new higher LOW is made (during a retracement) the Trailing SL will move up to that value and the same process continues till either the SL is hit or a SELL triggered.
For any clarification please do post.
Regards
-Anant
Let me explain this with an example. In Chapter II, I have given the Buy Triggers generated today. Let us take the example of GTLINFRA. Today GTLINFRA has closed at 37.20 (NSE price) and reached a high of 38.65. It has a made a low of 34.10 on 22-7-09. Using these values we calculate the Target and SL as Follows:
STOP LOSS = RECENT LOW = 34.10 (I have rounded this to 34, as we should have SL a little below calculated value).
TARGET = 2 times High minus Stop Loss = 2 X 38.65 - 34.1 = 77.3 -34.1 = 43.2
This is the way I calculate initial SL (There are other ways of calculating SL).The trailing SL will be same as the initial SL till a new LOW is made during retracement which is higher than the initial SL. Once a new higher LOW is made (during a retracement) the Trailing SL will move up to that value and the same process continues till either the SL is hit or a SELL triggered.
For any clarification please do post.
Regards
-Anant
Anant,
Is there any afl available for calculating trailing stop loss ?
If there is one will you pl post it here if permitted in this thread.?
Regards.
CNB