Whipsaw on BHEL
WHIPSAW ON BHEL
Today BHEL was on my watch list since it was looking weak on a daily chart...it has gone up on lower volumes..so wanted to short it with target of 2480.
I did short BHEL at 2510 and kept SL at 2520 just above yesterdays high of 2517.
There was a huge gap up by 15 points on 5 min bars which hit my SL and lost 10 points. Since it has broken yesterdays high on good volumes, I entered a long order at 2520....it went to 2528...and then just collapsed within a min by 20 points to 2500....I again covered at 2507....lost 13 points more...total loss 23 points.
See the pic.
Again went short when it broke the 2500 level. Entered double amount of shares at 2498...it went down to 2470...covered at 2472....gained 26 points and recovered losses..ended up in profit.
Now still wondering how can it suddenly gap up and down by 20 points within a minute,. However other trades on Nifty, ONGC and ICICI went well.
One more stagnant day for Nifty.
If anybody has any solution to avoid these whipsaws, please opine how this could have been handled?