Vijay - entry criteria depends on your trading timeframe. If you day trading then Tata Power is out of question tomorrow cause it has give
breakout today.. and gave a wide range day.. with good profit potential. If may not give same wide range tomorrow so forget it to daytrade tomorrow.
for day trading, the range NR7 day ie 20/oct was = 1405 to 1427.
So as per the rules given in post 4, you intraday entry for long shd ahve been above 1427, and for short it shd have been below 1405. With stop at the other end of the range.
If you want to trade on swing timeframe using daily chart, and want to wait for confirmation of break.. then you got the confirmation when stock closed beyond the range of NR7 day and on the side of breakout. Exactly like what happened to Tata power today i.e. upper breakout is confirmed by close above yesterday's range.
So your entry for long will be tomorrow. above today's high... i.e. above 1469.
If stock does n't go above today's high then probably this breakout is not valid.
These are just 2 examples that I have illustrated on possible entry. Please define your own rule/ timeframe of trade/ exit rules etc before you trade it.
Hope this helps
Happy Trading
breakout today.. and gave a wide range day.. with good profit potential. If may not give same wide range tomorrow so forget it to daytrade tomorrow.
for day trading, the range NR7 day ie 20/oct was = 1405 to 1427.
So as per the rules given in post 4, you intraday entry for long shd ahve been above 1427, and for short it shd have been below 1405. With stop at the other end of the range.
If you want to trade on swing timeframe using daily chart, and want to wait for confirmation of break.. then you got the confirmation when stock closed beyond the range of NR7 day and on the side of breakout. Exactly like what happened to Tata power today i.e. upper breakout is confirmed by close above yesterday's range.
So your entry for long will be tomorrow. above today's high... i.e. above 1469.
If stock does n't go above today's high then probably this breakout is not valid.
These are just 2 examples that I have illustrated on possible entry. Please define your own rule/ timeframe of trade/ exit rules etc before you trade it.
Hope this helps
Happy Trading