Timeframe: 1-Hour
Trade Type: Long Position
Entry Price: 1419
Stop Loss (SL): 1372.45
Take Profit (TP): 1489
Risk-to-Reward (RRR): 1:3.53
Trade Rationale
Bullish Trend Setup: The price action is showing a clear bullish momentum as RELIANCE has recently broken through a significant resistance level (indicated by the purple line). This breakout is a strong signal of potential upward movement.
Chart Pattern: The price forms a classic double bottom pattern (highlighted on the chart), which signifies a reversal from a downtrend to an uptrend. The pattern is confirmed with strong volume, showing the increased participation of buyers.
Entry Point: We are entering this position at 1419, right after the price breaks the resistance and starts moving upwards. This breakout marks the start of the potential rally.
Stop Loss: The SL is placed at 1372.45, just below the recent swing low, ensuring a safe exit if the market decides to reverse.
Take Profit: The TP is placed at 1489, a logical price target that accounts for a solid risk-to-reward ratio of 1:3.53. This is a reasonable expectation based on recent price action and volatility.
Volume Confirmation: Strong volume is observed, confirming the strength of the move. Typically, breakouts accompanied by high volume are more likely to continue in the breakout direction, supporting the bullish scenario.
Market Conditions: The broader market conditions appear favorable for long positions, with sentiment and technical indicators showing bullish signs across the broader market.
Risk Management
A tight Stop Loss ensures that we minimize risk in case of market retracement, while the Take Profit target allows us to ride the trend and maximize the potential return on this trade.
The Risk-to-Reward Ratio is set at 1:3.53, which aligns with sound risk management principles, allowing for substantial profits even with a lower win rate.
Trade Type: Long Position
Entry Price: 1419
Stop Loss (SL): 1372.45
Take Profit (TP): 1489
Risk-to-Reward (RRR): 1:3.53
Trade Rationale
Bullish Trend Setup: The price action is showing a clear bullish momentum as RELIANCE has recently broken through a significant resistance level (indicated by the purple line). This breakout is a strong signal of potential upward movement.
Chart Pattern: The price forms a classic double bottom pattern (highlighted on the chart), which signifies a reversal from a downtrend to an uptrend. The pattern is confirmed with strong volume, showing the increased participation of buyers.
Entry Point: We are entering this position at 1419, right after the price breaks the resistance and starts moving upwards. This breakout marks the start of the potential rally.
Stop Loss: The SL is placed at 1372.45, just below the recent swing low, ensuring a safe exit if the market decides to reverse.
Take Profit: The TP is placed at 1489, a logical price target that accounts for a solid risk-to-reward ratio of 1:3.53. This is a reasonable expectation based on recent price action and volatility.
Volume Confirmation: Strong volume is observed, confirming the strength of the move. Typically, breakouts accompanied by high volume are more likely to continue in the breakout direction, supporting the bullish scenario.
Market Conditions: The broader market conditions appear favorable for long positions, with sentiment and technical indicators showing bullish signs across the broader market.
Risk Management
A tight Stop Loss ensures that we minimize risk in case of market retracement, while the Take Profit target allows us to ride the trend and maximize the potential return on this trade.
The Risk-to-Reward Ratio is set at 1:3.53, which aligns with sound risk management principles, allowing for substantial profits even with a lower win rate.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.