Here is a beautiful case study that I am logging in to the trade journal. Below is the 5-minute chart of Bharat Forge Ltd. scrip. The opening Candle is marked on the chart. It also happens to be an up thrust candle. Today, this scrip opened near yesterday's close. The open is also near the weekly pivot 'R1'. During last one and half hours of previous day session price was bucked by this weekly pivot. It continued for current trading session as well.
I continued to watch this scrip through morning. I have marked an important zone near 686 levels using a gray box. This zone was Resistance earlier which is marked by down red arrows. This zone attains significance for price plummeted 25 points from here the day before yesterday. Today around mid-day price found support near 686 levels zone three times. RSI too gave bullish signals consistently during this time.
I really didn't have the gut feeling to pull the trigger for this trade though I could see price taking support near 686 levels strongly. This plan seemed quite aggressive for my personality. I decided to make a case study out of it.
My trade details are as follows. Entry is @ 684.35, Stop placed @ 681.9, and Target is near 691.85. This trade has 1:3.15 Risk-Rewards ratio.
This trade outsmarted the Risk-Rewards ratio very well. Frankly, if I were to have taken this trade, I would have closed this one at my target.