TATA MOTORS DOUBLE TOP WITH 2618 STRATEGY
Double top formed on 30 minutes chart of Tata Motors. We have to wait for the break out below the neck of the double top pattern i.e. 389.30
Now we have to use fibonacci retracement from swing high i.e. time 13:45 price 393.95 to swing low i.e. time 14:15 price 387.20. In majority of the cases it will have retracement upto 0.618. We have to put limit order sell at that level i.e. 391.30 or somewhat below that around 391.05, then wait for the order to trigger as soon as order trigger we have to put Stop Loss at 395.00 i.e. just above double top's high candle and Target - 1 will be latest structured support i.e. 386 and Target - 2 will be last swing low i.e. 379.45. In this case trade has already triggered i.e. candle time 14:45 price 391.30. See RSI divergence also on downside.
Note : Majority time of the trade you will be in a green. It works in all time frames. Sometimes it may not retrace upto 0.618 but retrace only upto 0.500. So as per your risk reward ratio you can trade. Do exact reverse if its double bottom.
Now we have to use fibonacci retracement from swing high i.e. time 13:45 price 393.95 to swing low i.e. time 14:15 price 387.20. In majority of the cases it will have retracement upto 0.618. We have to put limit order sell at that level i.e. 391.30 or somewhat below that around 391.05, then wait for the order to trigger as soon as order trigger we have to put Stop Loss at 395.00 i.e. just above double top's high candle and Target - 1 will be latest structured support i.e. 386 and Target - 2 will be last swing low i.e. 379.45. In this case trade has already triggered i.e. candle time 14:45 price 391.30. See RSI divergence also on downside.
Note : Majority time of the trade you will be in a green. It works in all time frames. Sometimes it may not retrace upto 0.618 but retrace only upto 0.500. So as per your risk reward ratio you can trade. Do exact reverse if its double bottom.
Dagangan aktif:
Shorted at 391.30
Dagangan ditutup: hentian tercapai