Darvas Box Strategy - Break out Stock - Swing TradeDisclaimer: I am Not SEBI Registered adviser, please take advise from your financial adviser before investing in any stocks. Idea here shared is for education purpose only.
Stock has given break out. Buy above high. Keep this stock in watch list.
Buy above the High and do not forget to keep stop loss, best suitable for swing trading.
Target and Stop loss Shown on Chart. Risk to Reward Ratio/ Target Ratio 1:1 & 2
Stop loss can be Trail when it make new box / Swing.
Be Discipline, because discipline is the key to Success in Stock Market.
Trade what you See Not what you Think.
ADFFOODS trade ideas
Darvas Box Strategy - Breakout StockDisclaimer: I am Not SEBI Registered adviser, please take advise from your financial adviser before investing in any stocks. Idea here shared is for education purpose only.
Stock has given break out. Buy above high. Keep this stock in watch list.
Buy above the High and do not forget to keep stop loss best suitable for swing trading.
Target and Stop loss Shown on Chart. As stop loss is Big we keep Initial Risk to Reward Ratio/ Target Ratio 1:1 - & T2 1:2.
Be Discipline, because discipline is the key to Success in Stock Market.
Trade what you See Not what you Think.
Is this the right time to enter ADFFOODS?NSE:ADFFOODS
Suggesting this stock for a long term investment of roughly 2 to 3 years with calculated and cautious risk.
Let us consider just two simple technical pattern to invest in this stock. First is wave pattern/Pole and Flag Pattern since the beginning of the stock's IPO. The stock used to trend upwards and then consolidate for longer period in all monthly, weekly, daily and even 15 mins chart. Secondly, the RSI and PSAR indicators are in incremental stage in monthly chart.
But, Is this the right time to put the stock in our portfolio?
The answer is, as the stock is trading above the support zone, any strong bullish movement in Day chart with good volume would be an ideal time invest.
Risk Management - On the other hand, if the stock failed to follow its historical wave pattern, then the SL would be below 150 which is 35% to 40% loss. So, keeping the investment value low would minimize the risk of losing the capital. Always calculate the risk percentage while finalizing the size of investment instead of calculating the estimated margin.
Reward - As per the technical chart, the stock has the probability of touching 600 mark yielding a margin of around 200%. But, keep watching the RSI, PSAR and Price action in monthly chart. Exit the stock when it meets all the following criteria:
1. A long bearish candle in monthly chart with increased volume.
2. PSAR starts indicating above the candles.
3. RSI indicator is in decremental stage and crossing below the yellow Moving Average (MA) indicator.
If the trend meets all the above criteria, then that's exit signal given by the technical analysis.
Make a safe investment!!! Follow me for the updates regarding this investment.
ADFFOODS - Long: R/R = 3I prefer stocks that are breaking out after a long base formation.
The strength of the upmove that follows unleashes a tremendous locked in power.
I will be keeping this in watch mode and will probably enter if things look ok.
Since I like pullback trades rather than breakout trades, will wait for more pullback and VCP formation.