Three rules to calculate=critical-very very
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Three rules to calculate and follow in a plan to swing trade are
1. Initial stoploss, and its cousin Breakeven stoploss
2. Trailing stop,
3. Price target for gainful situation
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1.Part-A
Initial CRITICAL stoploss=2% below entry price
Entry 260, say then
Initial stoploss=260 minus 2%=254.8
Part-B
BreakEvenstoploss= Entry price + brokerage (for buy and sell )
If you dont want loss at all, as soon as price moves above entry price,activate BESL
Precaution: Dont keep initial stop as it is.
Move initial stoploss for more gain-less loss,as price moves up.
2. Trailing stoploss= 20DMA-ATR(20)-1
If price rising, then for 20dma=230,ATR=12.4,
trailing stop=216.6
3. PRICE TARGET
MAXIMUM (GAIN )PRICE TO SELL= 5*ATR(20)+20 DMA
IF ATR=12.4, 20DMA=230, then price to sell for highest gain=62+230=292
ATR(20)= AVERAGE TRUE RANGE OVER 20 DAY PERIOD
WHERE TO GET ATR?
use LINK
www.icharts.in
-----------------------------------------
Three rules to calculate and follow in a plan to swing trade are
1. Initial stoploss, and its cousin Breakeven stoploss
2. Trailing stop,
3. Price target for gainful situation
===================
1.Part-A
Initial CRITICAL stoploss=2% below entry price
Entry 260, say then
Initial stoploss=260 minus 2%=254.8
Part-B
BreakEvenstoploss= Entry price + brokerage (for buy and sell )
If you dont want loss at all, as soon as price moves above entry price,activate BESL
Precaution: Dont keep initial stop as it is.
Move initial stoploss for more gain-less loss,as price moves up.
2. Trailing stoploss= 20DMA-ATR(20)-1
If price rising, then for 20dma=230,ATR=12.4,
trailing stop=216.6
3. PRICE TARGET
MAXIMUM (GAIN )PRICE TO SELL= 5*ATR(20)+20 DMA
IF ATR=12.4, 20DMA=230, then price to sell for highest gain=62+230=292
ATR(20)= AVERAGE TRUE RANGE OVER 20 DAY PERIOD
WHERE TO GET ATR?
use LINK
www.icharts.in