I log here a trade taken purely based on a plan prepared previous day. The stock in consideration is Bharti Artl Ltd. Below is the 5-minute chart of the same. The opening candle is a High-Wave candle hanging on weekly pivot 'R1'. For the first 45 minutes price fell down towards 200-MA.
Price took support near 200-MA and started reversing to go higher. Here was a chance to enter at a more bargain price. I carefully waited for a confirmation candle. The Risk-Rewards ratio was 1:4 even for a conservative target. Trade details are as follows. Entry is @ 535.5, Stop is placed near 533.9, and the target is placed at 545.1.
Near the target there was confluence of weekly and daily pivots marked by yellow horizontal bar. All through the trade I could trial the trade comfortably. Finally, when the trade was closing in on the target I manually closed the trade in a hurried mind. Price pierced the target and made a high 548. This was 1:5.5 Risk-Rewards trade for me.
What about Nifty 50 index?
Nifty 50 opened almost near the previous day High with a bearish candle. This bearish candle had a down wick which indicated the presence of few bulls. If a short trade is to be made on such situations, the down wick has to be violated. Today, the down wick was violated which signaled that all those novice buyers were bulldozed off by professionals. Nifty continued to fall towards the daily pivot level 's1'. Below is the 5-minute chart of Nifty 50 index.
Once Nifty fell down to 's1' pivot level, it started reversing. There was an opportunity to enter. But the reversal thereafter wasn't a strong one when seen in the hindsight. Nifty closed 0.07% negative for the day. Today’s Nifty range is almost the same as yesterday. When continuous same range days occur, there will always be a possibility for a breakout trade.