@Smart_trade sir sorry for troubling you again .as I am try to follow your foot prints so have some query .
1) short taken at 36700 pivot low and stop loss was 1ATR+resistance level.
2) short covered at 35400
3) long taken at 35868 and holding .
sir query here is where to book profit short taken at 36700 and it hitted 31100 and losing 4000 points. what we have to follow risk reward ratio or area of resistance support level . and same is for the long kindly guide sir how you will trade with this chart and sir instead of using naked pivot stop loss I use atr to filter the stop loss is this strategy good to tackle with such a volatile script. thanks sir
Profit booking is an art.....If one goes strictly as per mechanical method, he leaves too much on the table particularly in volatile markets. So if one is following mechanical method to book profits,then one has to accept that lot of points will be left on the table.
Few pointers for profit taking :
1) When market goes for 2-3 successive pivot low breakdowns,that time we need to be alert for profit booking.
2) If one trades multiple lots, we have to book profits as and when steep decline happens in the markets. This is because after steep decline markets reverse very strongly and most of our profits is lost, so after steep decline we have to trail our profit taking level to each successive lower bar's high.
3) After steep decline when we get a reversing pattern on the chart,like hammer,doji,harami pattern ..... take profits.....or atleast tighten your profit taking levels.
4) When the market gives you big profits, take it with both hands.
5) After the swing low, in the next 3rd bar market tested that low and it was held successfully...that was another call for taking profits
Trader has to achieve a delicate balance between taking profits too early ( out of fear) and taking it too late......one may not be right every time but if we are right more number of times than we are wrong,we are good in the long run.After 3 breakdowns, I will be sitting on the edge of my chair and not on easy chair...for taking maximum profit which the market has given us.
Smart_trade