#ReversalSetup 80-20 setup I am going to share one high probability reversal setup for swing traders. Before i explain setup below are few rules. ● Stock should have body of nearly 1% on Previous Day. ● For INDEX Body should be more than 0.5% on previous day. (1/n)
Rules for Sell 1. On previous day underlying should have opened in lower 20% of the day range and should have closed in upper 80% of the day range. 2. On current day in first hour of the trading day stock should have crossed PDH. (2/n)
3. once it make new high in first hour place sell order below PDC with STOP of Current DH. 4. Intial targets for swing trades can be 1:2 RR then trail your stops. (3/n)
Rules For BUY 1. On previous day underlying should have opened in upper 20% of the day range and should have closed in Lower 80% of the day range. 2. On current day in first hour of the trading day stock should have crossed PDL. (4/n)
3. once it make new high in first hour place buy order above PDC with STOP of Current DL. 4. Intial targets for swing trades can be 1:2 RR then trail your stops. (5/n)
PDH : PREVIOUS DAY HIGH PDL : PREVIOUS DAY LOW PDC : PREVIOUS DAY CLOSE DH : DAY HIGH DL : DAY LOW (6/n)
Few examples below
Do some paper trades before implementing this setup. Trade on standard stocks only, which has great volume. (End of thread)
#SBIN #GRASIM #HDFC #INDUSINDBNK 80-20 REVERSAL SETUP SELL BELOW PDC (PREVIOUS DAY CLOSE) SL DH (DAY HIGH) REFER GRAPHS
Only after 10:15 AM