Here's a plan-based case study of Axis bank scrip. Axis Bank is in correction mode in 15-Minute chart. As per the outlook, Axis Bank scrip was supposed to form 4th wave of a Triangle. Below is the 5-minute chart of Axis Bank. Opening candle is marked in the chart.
Before I could make anything out of the chart in the first 20-30 minutes, Flat pattern was already in place. My attention was caught in the 'c' wave fall. 'Will the price go on falling this way?' was one of the questions that dominated my mind. A little later I found Flat's 'c' had 1.618 of 'a' relation. It was perfect. Price shot up immediately. I missed entering at that level.
For a brief moment, there was internet disruption for me. In that 10-15 minutes I couldn't get to see those candles. This isn't a big reason frankly. Nevertheless, I missed 1:5 Risk-Rewards ratio trade.
Having missed the trade, I planned for 1:2 Risk-Rewards ratio trade. I have marked the trade detail box. I expected price to reach 754. As the price had already moved significantly, I decided to make the second trade a case study. This plan had the Stop set slightly below 200-MA. Little later the stock hit stop.
Lesson:
At times I have to be quick in making decision. When everything is in place, I must be able to enter the trade with risk defined. I must be fast to calculate the critical level, shares to trade, and target. Risk is always there.
Taking a second chance when the trade has done more than 50% of the target, it’s little risky to take trade.
What about Nifty 50 index?
Here's the log of Nifty movements for the day. Below is the chart of 5-minute chart of Nifty 50. Nifty opened around 20 points higher but inched lower for next 10 minutes to find support near 15730 zone marked in horizontal zone.
Nifty made an all-time high of 15800 before falling heavily. Nifty fell 230 points after 12:30. Frankly, I had not seen the bigger charts of Nifty of late. As I took a look at the charts after market hours, I found an Ending Diagonal pattern. Also, in yesterday’s Trade Journal in my last sentence I wrote about a breakout in Nifty. If the pivot ranges are same continuously for two or more days chance of a breakout is high. There was also an index-RSI index present. In fact there was a sly hint in my analysis during off-market hours yesterday. All the stocks in my watch list were near a significant Resistance zones. Finally, at the end of the day, Nifty closed -0.82% for the day.