This is a live swing trade I am taking in $TORNTPHARM. The stock is trading near All-Time Highs and showing exceptional relative strength by pushing higher irrespective of broader market conditions.
This post details the *full* mechanical framework I am using to manage this trade.
### 1. Indicators Used on This Chart
* **9 EMA (thin black line):** Short-term momentum guide.
* **21 EMA (thin orange line):** Acts as dynamic support for the recent pullback.
* **50 EMA (green line):** Medium-term trend.
* **Volume:** Validating the buyer interest on up-days.
### 2. Decoding the "High Tight Flag" Setup
This setup screams strength for three reasons:
1. **The Pole (Nov 10 Breakout):** The stock saw a massive, high-volume surge in mid-November, breaking out of a long-term base.
2. **The Flag (Consolidation):** Instead of giving back gains, the stock entered a tight, healthy consolidation phase. It pulled back gently, finding support near the **21 EMA**, which shows buyers are eager to defend the trend.
3. **Relative Strength (The "Alpha"):** Today, the stock is moving up strongly despite lackluster market conditions. When a stock ignores market weakness, it often leads the next leg of the rally.
### 3. The Mechanical Trade Plan (The "Swing" Playbook)
This is a cash "Swing" trade with defined rules.
* **Bias:** Long
* **Entry (Purple Line):** `₹3,790.00` (Buying the breakout from the consolidation flag)
* **Stop-Loss (Red Line):** `₹3,670.00` (Placed structurally below the recent consolidation lows and the 21 EMA support)
* **Risk (1R):** My risk is fixed at **`₹120.00`** per share. This is a tight **3.16%** risk, offering exceptional Risk/Reward potential.
### 4. Our Exit Strategy (The "2R / 21EMA Hybrid")
1. **Target 1 (Base Hit):** Sell **50% of the position at +2R.**
* **2R Target = ~₹4,030.00**
* This targets the psychological ₹4000+ level.
2. **The "Free Trade" Maneuver:** As soon as Target 1 is hit, the stop-loss on the remaining 50% is moved to **Breakeven (`₹3,790.00`).**
3. **Target 2 (The Runner):** I will trail the remaining "free" position using the **21 EMA (orange line)** to capture the trend continuation.
*Disclaimer: This is not financial advice. This is my personal trade journal and framework, shared for educational and analytical purposes only. Always do your own research.*
This post details the *full* mechanical framework I am using to manage this trade.
### 1. Indicators Used on This Chart
* **9 EMA (thin black line):** Short-term momentum guide.
* **21 EMA (thin orange line):** Acts as dynamic support for the recent pullback.
* **50 EMA (green line):** Medium-term trend.
* **Volume:** Validating the buyer interest on up-days.
### 2. Decoding the "High Tight Flag" Setup
This setup screams strength for three reasons:
1. **The Pole (Nov 10 Breakout):** The stock saw a massive, high-volume surge in mid-November, breaking out of a long-term base.
2. **The Flag (Consolidation):** Instead of giving back gains, the stock entered a tight, healthy consolidation phase. It pulled back gently, finding support near the **21 EMA**, which shows buyers are eager to defend the trend.
3. **Relative Strength (The "Alpha"):** Today, the stock is moving up strongly despite lackluster market conditions. When a stock ignores market weakness, it often leads the next leg of the rally.
### 3. The Mechanical Trade Plan (The "Swing" Playbook)
This is a cash "Swing" trade with defined rules.
* **Bias:** Long
* **Entry (Purple Line):** `₹3,790.00` (Buying the breakout from the consolidation flag)
* **Stop-Loss (Red Line):** `₹3,670.00` (Placed structurally below the recent consolidation lows and the 21 EMA support)
* **Risk (1R):** My risk is fixed at **`₹120.00`** per share. This is a tight **3.16%** risk, offering exceptional Risk/Reward potential.
### 4. Our Exit Strategy (The "2R / 21EMA Hybrid")
1. **Target 1 (Base Hit):** Sell **50% of the position at +2R.**
* **2R Target = ~₹4,030.00**
* This targets the psychological ₹4000+ level.
2. **The "Free Trade" Maneuver:** As soon as Target 1 is hit, the stop-loss on the remaining 50% is moved to **Breakeven (`₹3,790.00`).**
3. **Target 2 (The Runner):** I will trail the remaining "free" position using the **21 EMA (orange line)** to capture the trend continuation.
*Disclaimer: This is not financial advice. This is my personal trade journal and framework, shared for educational and analytical purposes only. Always do your own research.*
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.