Trade Journal - Case Study [27 - 10 - 2021]

Since yesterday, I have been tracking Axis Bank share. My presumption was that a complex correction was unfolding. At the end of yesterday's session, price had managed to move above 200-MA and current weekly pivot 'P'. One could see the conviction of bulls yesterday.

This morning after opening, price seemed to be taking support near the 'P'. The moment a confirmation candle started forming after the High-Wave candle [marked in the chart]; I could see a buying opportunity. Please refer the 5-M chart below.

I marked the critical point at 693 by red horizontal line. There was price-RSI divergence if one could identify. It was hidden very neatly. Refer the chart above.

From the beginning, I wanted to make a case study. I drew a trade box. The trade details are as follows. Entry price is at 696.6, Stop loss is at 693.6 [just below the High-wave], and the target is fixed at 704. The trade had 1:2.8 Risk-Rewards ratio.

The trade won 7 points. But observe the rally that followed after. I had my analysis on this scrip since yesterday and it pointed 715-717 levels as possible target. I couldn't capitalize from the big picture analysis in this trade.

Patience is key to success in trading. In the hindsight, I feel I should have morphed the trade into a free one by moving the stop upwards.

Trade Journal - Case Study [07 - 10 - 2021]

Here is an account of a case - study of Axis Bank trade. Please refer the 5-minute chart of Axis Bank below. Though price opened Gap Up, the opening candle was a huge bearish candle. This was a tricky situation. To buy at such times the price must break the high of the bearish candle which didn’t happen in the case below.

From the chart above we see that there were two failures which created Lower Highs consecutively. Near the 2nd failure the price hung on to the daily pivot 'p'. Price was also below 200-MA.

In this weakening price situation, price had to drop 5 points in order to fill the Opening Gap of the session. It was feasible scenario. And there was a current weekly pivot ‘P’ coinciding near the previous close. So, I decided for a short trade.

The trade details are as follows. The entry is at 780.9, the stop is placed at 783.8, and the target is at 774.7 as shown by the trade box from the chart above.

This short trade had Risk-Rewards ratio of 1:2.1. The trade earned 6 points.

What about Nifty?

Nifty 50 too opened Gap Up for the day. But as can be seen from the chart above, the broader index stayed sideways for the day.