I am new around here and new to trading, still trying to wrap my head around all these trading strategies and ideas.A big thanks to all the seasoned traders sharing their ideas and strategies. Just read through the NR7 setup and NR21 setup, both sound great. I am yet to try them out in real time, hopefully will get to do it tomorrow.
A question though....
Wipro has met the criteria for NR21, as shown in the chart I have attached with this post. I think I messed up the numbering and stuff, but its pretty clear.
The last 3 candles, indicate some sort of engulfing, not sure if its bearish or bullish
. The big red candle, number 20, has a high of 353.90. As per NR21 setup, I should be buying above 351.90, which is the high of the last candle (5th July 2013) and set a target 1% above that, which is roughly 355.50......or sell below 348 with a target of 344.5.
However, since there is an engulfing pattern, the High and Low of Candle number 20 will act as resistance and support. The resistance being the high of candle 20, i.e 353.90, which will actively try and resist the price from reaching our target of 355.50....1% profit.
So, is it a safer bet to :
a) set the target at or below the resistance at 353.90, which will give 0.5% gain....
OR
b) wait for the price to break the resistance at 353.90 and close above it before taking a buy call.
A BIG thanks to the creator of keystocks-lite, very handy software.