Nifty & this stock both are in downtrend so traders are naturally looking for shorting trade setup that requires small risk. Today's bearish engulfing at U-ML could be used to short the stock by providing SL of just high of the today. Here we are risking small amount and set the initial profit target of 2 times the risk is being taken. If it works we can continue with trailing stop loss for the target of ML touch.
Hi Praveen..
Just curious to know, why didn't you use low of 6Feb to draw ml set?
praveen.bhatiya
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@safri, If we observe the 4 Bars around 6 Feb(1 before and 3 after) it is clear that they were in the same price range and last bar 9 Feb was the turning point. Only on 6th price opened deep down with gap due to high volatility but it closed in the same range. I've ignored the abnormality and taken what i thought could be normal. I do it often in choosing the pivot and it works better for me. But in this particular case it does not affect the slope of PF so entry would be same.
Just curious to know, why didn't you use low of 6Feb to draw ml set?