BC TA

How to find out the expected targets and what should be the exit criteria when you enter a trade - ๐Ÿงต

Possible ways to find out the target:

Check if any patterns forming - it gets quite easy to figure out the targets that way. (1/15)

Let's say cup and handle. Our first target in this case will be the height of the handle and final target will be height of the whole cup. It's the same with H&S. First target will be the height of the shoulder and final will be the height of the head. (2/15)
In triangles, the targets will be height of the whole triangle.

Sometimes, after hitting the first target.. stock starts consolidating or take a retest of the breakout. On some occasions, stock gives one sided move non-stop.. without any pullback. (3/15)
A lot depends on the stock behaviour too. If a particular Index gave a breakout, then too stock gives final target without pullback.

Also, if stock gives weekly breakout and market is trending during that time.. even then it gives a one sided move. (4/15)
Recently, we've seen many such stocks -- Kotak Bank, TataMotors, TataPower.

Other helpful thing I learned from @Traderknight007 about exit criteria is using volume expansion and DMA/EMA. I began using it and benefitted. This is recently observed in TCS, DLF & many others. (5/15)
Now let's talk about extended move. When a stock gives one sided rally in short period of time, it's extended move.
In large caps, it's generally an extended move when stock is away 20-25% from 50 EMA and midcap/small cap give 30-35% move and then pause a little in trend. (6/15)
However, exceptions are always there in extended move like Mindtree, IRCTC and IEX. You can book partial profits there if targets and this condition meet and you can simply use Trailing SL for partial profits. Let's take an example of DLF. (7/15)
DLF Daily timeframe has changed trend. It began moving upside and gave breakout. Formed Inv. cup & handle and gave breakout again followed by rally of 20-25% from 50 EMA. First target was 355-60 as per handle target. Also, it has already moved 20-25% from 50EMA. (8/15)
For more understanding, go through this amazing thread of @Traderknight007 ๐Ÿ‘‡

https://t.co/5N6hcW6SOm

(9/15)
Now let's talk about Trailing SL

Trend followers prefer to trail their profits but you can do it as per your comfort. Just make sure you have an exit plan.

Trailing has many methods. Being a price action trader, I use swing lows and candlestick for trailing. (10/15)
I also like Supertrend (10,1) to trail short term trades.
There are many other ways too.
@Traderknight007 has written this one more amazing thread you can go through and put this information to use. (11/15)

https://t.co/Pysa6LDK4t
Trailing is the best way to be in a trade and ride the trend as far as stock gives a move. You can capture the big move too through this. You should use trailing SL till your target shows up. It's always advisable to use one fixed method to trail SL. (12/15)
With a strong Index, stock gives easy move but if Index is sideways or weak- stocks troubles you for your target. This makes trailing SL important to minimize your loses. Once you get follow up post breakout or 2 bullish candles, start trailing your SL immediately. (13/15)
In trailing, sometimes our TSL triggers due to volatility but be ready for re- entry.
If stock breaks last swing high, enter again and use same trailing SL method. It's difficult initially to enter same trade from higher price but good opportunity shouldn't be missed. (14/15)
The trick is to not look at the price and simply follow the chart. Take a smaller quantity if you don't feel comfortable but make sure you don't miss the trade.
Having an exit plan is as important as entry plan. I hope it helps. (15/15)

More from Sheetal Rijhwani

More from Ta

Moving Averages is a common indicator which most of us (novice/professional) use in the stock market for trading and investment.

This learning thread would be on
"๐™๐™จ๐™š๐™จ ๐™ค๐™› ๐™ˆ๐™ค๐™ซ๐™ž๐™ฃ๐™œ ๐˜ผ๐™ซ๐™š๐™ง๐™–๐™œ๐™š"

Like๐Ÿ‘ & Retweet๐Ÿ”„ for wider reach and more such learning thread.

1/10

Basics of the moving average:

It takes average of the price for the duration we want.

So 10 days moving average means an average price of 10 days closing price.

Common types of Moving Average:
Simple, Exponential, Weighted.

Use only one type in your trading setup.

2/10


Different uses:

1โƒฃ Moving Average Crossovers:

Common strategy used by positional traders and investor in finding multibagger or good returns stocks.

Common crossover used is for 50 & 200 Moving Average.

Also, this is called as "๐—š๐—ผ๐—น๐—ฑ๐—ฒ๐—ป ๐—–๐—ฟ๐—ผ๐˜€๐˜€๐—ผ๐˜ƒ๐—ฒ๐—ฟ"

3/10

In this buy signal is initiated when lower MA (50 EMA) crosses above higher MA (200 EMA).
And exit or sell signal is intiated when lower MA (50 EMA) crosses below higher MA (200 EMA).

4/10

Let's see an example:
Pidilite Industries

Buying Price was 56 in 2009 and CMP is 2462 and still there is no selling signal.

44 times Multibagger or 4300% returns.

In lower time frame, it will give more whipsaw and more number of trades.

5/10
Moving Averages ๐Ÿ“š

๐Ÿ’ŽSECRET INFO inside

๐Ÿง Great for both beginners & advanced traders

โ–ช๏ธ What are they?
โ–ช๏ธ Types of MAs
โ–ช๏ธ Why are they such a powerful tool?
โ–ช๏ธ How to properly use them?
โ–ช๏ธ My best SECRET EMA value?
โ–ช๏ธ Which Timeframe to use?
โ–ช๏ธ Advanced EMA technique?

1/20


โ–ช๏ธ What are they?

Moving average is nothing more than an average price of the last (value) of candles.

If we are gonna use an example of MA(50) it is gonna be the mean price of the last 50 candles

General rule:
Price above = Bullish ๐Ÿ‚
Price below = Bearish ๐Ÿป

2/20


โ–ช๏ธ Types of Moving Averages

1) Simple Moving Average - SMA
2) Exponential Moving Average - EMA
3) Smoothed Moving Average - SMMA
4) Volume Weighted Average Price - VWAP

There are a few more but these are the most important in my opinion.

3/20


I won't be going that much into detail about each of them in this thread but more so covering MAs in general.

The important takeaway is there are many methods of calculations and each offers bit different pros & cons

I'll leave experimenting with each of them up to you

4/20

โ–ช๏ธ Why are they such a powerful tool?

Because they help everyone, even newbies, that are just starting out, to easily & visually clearly identify trends without understanding the advanced Market Structure techniques.

Price above = ๐Ÿ‚

5/20

https://t.co/g5SneLNPh5

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