HPCL: How Technical Analysis helped us capture a 7.5% movement
HPCL
Idea published on 19th June
Trade Analysis
The trade was purely based on historical price points... important support & resistance levels
- the green & small blue line told us the importance of 210-214 levels
- targets of 228 / 236 were kept looking at longer time frame horizon
The upper resistance is around 243 highlighted by the red line. But rather looking at it as exact number, I look at it as zones / range. And at 236 it is at the lower end of the target range...
The trade had a profit potential of 7.5% in cash market with a risk of 4.3% - providing a decent Risk::Reward ratio
Now here's an interesting part.
With our option strategy we converted the trade in to 5.5% reward potential (a little less profitable) but more importantly with full risk cover for a fall up to 210.50. How about that...!!!
The lesson is loud and clear. Do your home work. Study, Analyse & Keep patience. Do not think of get rich quick. Rather Focus on managing your risk first. And then look for profits.
Hope you find the lesson helpful.
Follow for more such trading ideas
You can Message in private if interested in learning. Message only if you are serious about learning.
Thanks & Regards
Vaibhav Deshpande
Idea published on 19th June
Trade Analysis
The trade was purely based on historical price points... important support & resistance levels
- the green & small blue line told us the importance of 210-214 levels
- targets of 228 / 236 were kept looking at longer time frame horizon
The upper resistance is around 243 highlighted by the red line. But rather looking at it as exact number, I look at it as zones / range. And at 236 it is at the lower end of the target range...
The trade had a profit potential of 7.5% in cash market with a risk of 4.3% - providing a decent Risk::Reward ratio
Now here's an interesting part.
With our option strategy we converted the trade in to 5.5% reward potential (a little less profitable) but more importantly with full risk cover for a fall up to 210.50. How about that...!!!
The lesson is loud and clear. Do your home work. Study, Analyse & Keep patience. Do not think of get rich quick. Rather Focus on managing your risk first. And then look for profits.
Hope you find the lesson helpful.
Follow for more such trading ideas
You can Message in private if interested in learning. Message only if you are serious about learning.
Thanks & Regards
Vaibhav Deshpande
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