Here are my thoughts for trade journal .The stock in consideration is Bharat Forge Ltd. From the chart below we can see an opening huge bearish candle hung on to the current weekly pivot 'R1' and the stock fell for first 15 minutes. Below is the 5-minute chart of Bharat Forge Ltd.
I planned to buy the stock once the Gap is filled. But the
huge down wick of the hammer altered the Risk-Rewards ratio. I needed gut
feeling to enter the buy trade. I couldn't enter this trade.
After surging a little above daily pivot 'r1' price started to fall. My focus was shattered as I looked into Roger’s exit news from Roland Garros. I missed an opportunity to sell. So, I was determined to buy once price fell to 749 - 746 zone. It was already 2:00 clock in the afternoon.
I at least decided to make a case study out of this one. I have drawn long position box in the chart. The price had not yet finished its complete fall. The presence of left over sellers made the price to touch 746 zones again. That's when my stops were taken off.
What about Nifty 50?
Nifty 50 opened Gap up near the previous day High and covered the gap within next five minutes. Half an hour later, a beautiful Hammer and a confirmation candle foretold an up move. Below is the 5-minute chart of the Nifty 50 index.
From the chart above we can see the confluence of previous day and current day daily pivots of 'r1' near 15730 levels marked in the gray box.
At 1:00 clock another trade opportunity manifested. Price
nearly took support near longer MA in the chart and also PR in RSI supported
this trade plan. Good Risk-Rewards ratio was present. But a strong will was required to take up such trades.
Price made all time high of 15770 during the day and closed 0.52% higher.