CENTURY TEXTILE : Risk/Reward 1:6

2020(6)
Long Centurytex

Entry 490
Stop-loss 473
Target 590
Risk/Reward 1:6

I explain more about my analysis later in updates.

Note

Bullish Flag Breakout.

One thing i hate about all the chart patterns is placing a stop-loss at the pattern lows. That spoils a RR Ratio.

Bullish Flags are continuation patterns it assumes that the prevailing trend will continue after the breakout.
So why keeping stop-loss at the pattern low?
If the trend is strong then breakout will be as strong as a trend too.
I don't applying a re-test theory in my trading with short term patterns.

This are my views about trading short-term patterns. Critics are welcome to discuss.

Note

It looks like a pullback is completed, and now ready to continue on going up-trend with a flag breakout.

We are trading probabilities, we can't predict future prices, but we can trade what is probable as per our learning and experience.

Note

Centurytex 513 trading at 0.618% retracement. Closing above 0.618& re will be a good bullish sign.

Note

Closed at 521.50 above 0.618 Re.

Note

Trailing Stop-loss to the Entry price and using a covered call, lowering the risk.
CMP 530 SPOT & writing 30JAN 560 CE at 7.60

Note

Century Textiles New 52 Week High. 449.80

Note

Typo *549.80

Trade closed: target reached

Century CMO 600. The target of 590 Achieved, It's a 20% Jump.

However, my gains are restricted to 15% or 77 Rs due to a covered call. But Still it decent gain.

Equity-Earningz

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NMDC : RISK/REWARD 5:1

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Equity-Earningz

Also on:

Related publications

NMDC : RISK/REWARD 5:1

by Equity-Earningz

Gail : RISK/REWARD 8:1

by Equity-Earningz