[Entropy] Jindal Streel Short Idea Discussion

11 Sep 2023

This image shows the Entropy trade that was triggered few minutes back.



This images shows it into more details.

It is to be observed that after it triggered the entry, the next candle did not break the low of the candle which triggered the sell. In fact, it made an inside bar.

First of all, Inside Bar means indecision. And, The fact that it did not immediately break the previous candle's low shows a lack of strength on the part of the bears. But the candle marked as "The next candle" is also interesting.

It tried to go up but made a pin bar i.e. the bulls tried to push upside but it shows that although bear has not been able to push the price downside, they are not letting it go upside!

• Bears have not been able to push the price downside.
  
• The bears are aggressive in not letting it go upside!
  
• It means We should do the same. We must keep the short.
  
• But It has to be aggressively trailed as the Bulls are in the system. We can not make it a "Sell and Forget" approach.
  

But - This definitely makes the symbol a weak candidate for short. So, Either Scalp or Trial it Aggressively.

11 Sep 2023

Nota

The ongoing struggle between bulls and bears has created an intriguing scenario for time compression trading.

This pattern resembles a pennant formation, signifying that amid the sideways consolidation within a downward trend – where the bears seem to be gaining the upper hand – there's a heightened potential for a sudden, game-changing event.
This impending event holds the power to determine the victor in the battle between the bulls and bears.

It could culminate in either a breakout or a breakdown.

We remain vigilant and maintain an assertive stance in monitoring our stop loss, staying prepared for whichever outcome unfolds.

11 Sep 2023

Nota

And bears won!

11 Sep 2023

Nota

- The most intriguing aspect of this trade is the **Overlotting Condition**.

- In our standard setup, we typically set the stop loss at the day's high, which can result in a relatively high stop loss level.

- However, in this scenario, the stop loss is significantly smaller due to our trailing approach.

- This provides an opportunity to increase our position size, allowing for more positions.

- To illustrate this concept mathematically in simpler terms:
- If our initial stop loss would cost us 5000 INR and the lot size of the stock is 500, it equates to a 10-point stop loss.
- Now, with our current stop loss set at 5 points, we can effectively double the lot size.

11 Sep 2023

Nota

We hit Target 1.