Comment on Getting Started with Candlesticks

Karthik Rangappa commented on 07 Feb 2016, 04:08 PM

Kumar, firstly thanks for the kind words 🙂

Specific to RIL, if you were to look at the charts across any time frames then you will realize that the stock is trading in a range -between 875 to about 1020….which means to say any movement between these two price points is very transient in nature. Trades within this range are well defined and has to be super quick.

In fact this is true in general, keep three things in the back of your mind –

1) If the stock is in a range – trade it within the range , buy at the lower end, book profits at the top of the range, and vice versa (Ex RIL)
2) Stock is rallying (up trend) look for buying opportunities on low volume corrections
3) Stock is falling, look for selling opportunities on low volume uptick

Given this framework you throw in a bit of options strategies to calibrate your trading style to suite your risk and reward outlook 🙂

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