Indicator - Simple Moving Average with length 34 days and source close price Once plotted, we have to identify an alert candle
Characteristic of an alert candle are
1) It touches the SMA 2) Close Price is greater than SMA Value 3) Low Price is lower than SMA Value 4) Close Price is greater than SMA Value (green candle)
Also note that the stock is in uptrend - Minimum 10 previous candles formed above SMA line Entry - Buy at High of Alert Candle Exit Stop Loss - Lowest of the Low ( Lowest price in past 3 days) R = Entry - Stop Loss
Target 1 ( 50% ) - 1:1 i.e., Buy Price + R Target 2 ( 50%) - 1:3 i.e, Buy Price + 3R Once Target 1 is achieved move SL to Buy Price
Comment
Stock : NMDC
Date: 26th March- Alert Candle Formed Entry@128.80 SL 122 R = 6.8 Target 1 - 135.6 ( achieved) Target 2 - 149.2 ( not achieved) - Exit 50% shares at 135.4 (improvisation after 2R, moved the SL to last day Closing Price )
Trade closed: target reached
Target Reached for 2nd position. Entry @140.25 Exit @145.10
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