Pullback completion is a reversal of the minor/secondary trend, & just like any trend reversal, one can judge it earlier on a shorter timeframe.
Study RATNAMANI chart today on daily & hourly time-frames for one such pullback.
Study RATNAMANI chart today on daily & hourly time-frames for one such pullback.
GREENPANEL gave a pullback entry near 546 levels based on hourly candle closing above 20 SMA. Entering here with day low as SL, you’d have got a 3R trade by EOD.
Entered BSE today with low of previous day as the SL. The hourly chart had already signalled completion of the pullback in the last hourly candle yesterday.
Things will not always go our way, & sometimes, the pullback will squat on the same day of entry. Happened today with TRIVENI, where the first hourly candle signalled a strong entry.
You can judge a failed pullback if the price closes below hourly 20 SMA the very same day. Exit!
You can judge a failed pullback if the price closes below hourly 20 SMA the very same day. Exit!
Sometimes the stock will appear to be squatting at EOD. Instead of exiting in panic, have a look at the hourly chart. If the price is still above 20 SMA, carry it.
I exited SPLIL yesterday following a squat, but missed the hourly chart on exit. Today it gave me my lesson.
I exited SPLIL yesterday following a squat, but missed the hourly chart on exit. Today it gave me my lesson.
Remember that just closing above hourly 20 is not an entry in itself. Once you’ve identified a pullback, look for a tight day, & enter only above that day’s high.
In SPLIL, while an hourly candle closed above 20 MA on 25th March, the price had not yet breached the PDH. No entry!
In SPLIL, while an hourly candle closed above 20 MA on 25th March, the price had not yet breached the PDH. No entry!
Infrequently, hourly Supertrend will help us get the entry faster than 20 SMA. I use it with the 10,3 parameter.
In TV18BRDCST, candles were struggling to close above hourly 20, but hourly Supertrend already went green. With an SL at PDL, we got a fine 3R trade.
In TV18BRDCST, candles were struggling to close above hourly 20, but hourly Supertrend already went green. With an SL at PDL, we got a fine 3R trade.
There'll be instances where you will get multiple entries in a pullback. In retrospect, you’ll judge as to which one was best. There’s no right or wrong entry, but the tighter the better.
In LAXMIMACH, I chose to wait for the tightest entry & went home same day with a 3R trade.
In LAXMIMACH, I chose to wait for the tightest entry & went home same day with a 3R trade.
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