When multiple confirmations strongly come together in confluence there is a case for good Risk-Rewards ratio trade. Here’s a curious case of Bharat Forge Ltd. The chart below is of 1-minute time frame. I generally don’t blow up the charts this far.
The opening candle is an up thrust as well as bearish engulfing. This candle is finding a stiff resistance near weekly pivot. The plan was to sell if price gives an opportunity near middle of the bearish engulfing and keep the stop above weekly pivot. Target is set near the daily pivot ‘p’ where 200-MA is in confluence with the same. A good 1:2 Risk-Rewards ratio is the offering.
The execution had to be fast with tight Stop in place. I couldn’t do that fast. The time is just 9:16 A.M. which is barely one minute into the market open. It was difficult to pull the trigger. I have never done this earlier. The trade details are as follows. Entry is @ 697, Stop is @ 701.5, and the target is set @ 688.5. Within few minutes the trade went according to the plan.