Technical analysis is nothing but just trade according to direction of one line …we use very simple technique in it …for intra day trades if candles are closing below green line we plan short trades and if candles are closing above green line and line is pointing up we plan long trades but when candles are hovering up and down of line we must avoid trades.
trade with stop loss order punched in system .above chart is 5 min chart of crude intraday move. crude was extremely bearish and creeping down .We have planned sell call seeing its negative movement . call was like this
23 Aug 13, 07:11 PM [×] [o] admin: crude traded at 6701 from 6721 now again at 6715 so advised to BOOK in steps at 6702 6682 6662 6642 and so on
23 Aug 13, 07:12 PM [×] [o] admin: and do multi trade
23 Aug 13, 07:31 PM [×] [o] admin: crude 6702 traded from 6721
23 Aug 13, 07:39 PM [×] [o] admin: crude traded at 6692
23 Aug 13, 07:41 PM [×] [o] admin: SELL crude at 6719 30 sl 6741 tgt 6702 6682 6662 6602
23 Aug 13, 09:34 PM [×] [o] admin: crude sl triggered in third shot
crude traded above 6928 more than 200 points up means loss of 20000/- if not traded with stop loss order ..
so what is gud here booking of 20k loss or booking of 1 to 2k loss in form of stop loss order .
what is that ???
Stop Loss orders are orders placed with your broker, and executed to buy when a certain price level is reached if you are holding a short position…. read more at http://dhanvarshagrp.blogspot.in/2011/07/stop-loss-order-technique-you-must-know.html
Technical analysis and stop loss order