VEDL buy setup - Risky counter trend trade

30 ene 2020

Buy VEDL above 144

T1: 151
T2: 158
T3: 167

SL: 139

30 ene 2020

Nota

Another reason why we are planning to swim against the tide is because the trendline is already broken and a move above 144 would indicate the trendline breakdown to be a fake one. Going by classic charting principles, a move after invalid pattern occurrence is usually more rewarding. Hence we can take a small risk in this counter trend trade (if entry is triggered).
If the long trade is not triggered in next couple of trading sessions we will certainly look for a good opportunity to short, i.e in the direction of trend.

31 ene 2020

Nota

Trade not yet triggered

6 feb 2020

Nota

Please do NOT go long now as the swing low had broken on Feb 01

6 feb 2020

Nota

VEDL re-entered above the trendline support

6 mar 2020

Nota

.
The reason why I requested not to go long after the swing low was broken is now evident.