Reliance which has 8.73% weightage in Nifty 50 and is also India’s top profit making firm. It’s chart is consolidating on a higher trime frame as seen in image below.
If we see it closely then we can see that for past few years it’s on & off spending quite some time now near the same zone. And last time when it did it in 2012-2017 it gave a massive 200% rally after that
But this time I want to take a calculated risk if it spend some time at upper levels. Be it one or two negative candles from here.
It can help us put our stop loss at the bottom of previous low on a weekly time frame. This is how as a trader I want to take a trade but with a calculated risk.
So let’s just end this with a moral in the end which is that for every trade that we take there must be logic behind it which is backed with proper money management tactics like tight SL & Position sizing as per defined risk.