My record of Axis Bank trade is as follows:
Axis Bank share opened Gap up. The first trade I could conceive was around 9:35. I couldn't take that trade. Now, having missed this trade I was on a look out for next opportunity.
There is Resistance zone marked by the extended box from left of the
chart at 696 levels. This zone seemed strong. This Resistance zone is from 30-minute chart [not shown here]. Below is the 2-minute chart for discussion.
By 1:30 p.m. the price had pierced this zone 2 - 3 times. The circles mark the presence of small candles which indicate indecisiveness. The arrow mark shows beautiful opportunities. I expected a correction to follow.
At the second down arrow mark I decided to take trade. But I entered the trade late due to indecisiveness in my mind. My stop loss was set above the wick of candle marked by second down arrow. Time of entry was 2:05 p.m.
In fact the 2:30 bullish engulfing candle made me uncomfortable. I planned to exit. I sensed sudden price move up. I planned to cut the trade. But I stuck to the plan.
My idea was that a 30-35 points fall in Nifty would push Axis down to 690. This was another reason for the trade. But the price could only move till 692.35.
I was a novice for this day. Professionals erased all the
stops. We can see that big candle of 2:45 p.m. I went short 100 shares. So, being hit by Stop, my loss for the day along with brokerage comes to roughly 440.
What happened in Nifty?
For today Nifty opened Gap up. The opening candle has a
large down wick which indicates bullish scenario. The blue horizontal lines are
previous day High and Low. Please refer the 5-Minute chart of Nifty 50 index below.
The second 5-minute candle confirmed the strength of bulls. Nifty went on to hit R2 pivot level.
Rest of the day, the index inched lower slowly towards the previous day High and closed little above that level. The down mark shows the point of my entry in Axis bank.
It looks like Nifty is poised to move higher levels.
Tomorrow's open will decide the direction of the move.
Lessons:
The Risk-Rewards ratio of the trade was 1.625. This is not favorable at all.
I scanned only 30 minute chart in the morning. The 696 Resistance dominated my thoughts.
Even had I seen the 15-minute chart at 2:30, I could have decided to cut loss. This thought is in hindsight.
Commingling other technical tools will benefit a lot with price action.
Actively look for signs that endanger the presumption of the trade itself. Take action accordingly if those are strong.