#FakeParadise #ReversalSetup Before i share this setup, let me tell you this is not a easy setup to trade without deep understanding. So let's discuss the setup and what does it mean!! (1/n)
Rules For Sell 1. New 20 period high should have been made today. 2. Previous 20 period high should have been made minimum 3/4 days before. 3. Close above previous 20 day high or not is optional. (2/n)
How to implement? 1. Once we get new 20 period high stock, on same day/ next day we place sell stoploss order few ticks below previous 20 period high. 2. Stoploss : few tick above Latest high 3. Target : 1:5 R:R achievable (trail stop after 1:2 R:R) (3/n)
Rules For Buy 1. New 20 period low should have been made today. 2. Previous 20 period low should have been made minimum 3/4 days before. 3. Close below previous 20 day low or not is optional. (4/n)
How to implement? 1. Once we get new 20 period low stock, on same day/ next day we place buy stoploss order few ticks above previous 20 period low. 2. Stoploss : few tick before latest Low 3. Target : 1:5 R:R achievable (trail stop after 1:2 R:R) (5/n)
Meaning of setup: ● We are selling on new highs & buying on new lows in this setup. ● Many times retailers get trapped by buying on new high & selling on new low, to find such kind of trap this setup is useful. ● This is the reason we have renamed it to "Fake Paradise". (6/n)
Few examples #DHFL
#RELIANCE The best one, never seen that price back on screen after this.
This setup is not high probability setup but yes this setup has excellent R:R ratio. Do paper trades before jumping into real game. It will take really good efforts from your end to understand the setup.
@sanstocktrader @Stockengg @CAtLarge @nifty_baba @ravi_mehata88 do share to spread awareness and to spread learnings.