Nice work but today many stocks come back to original positions after triggering...how to deal with the situation?
For ex: i bought relinfra.it moved a bit but eventually come back to its range & also went down
Amit,
You need to be very selective when trading stocks with NR7 pattern. Not all stocks will give real break out or break down. Some stocks might be trading at critical support or resistance level. It may give a false breakout and trap traders. Consider the below chart
Reliance Infra:
As per NR7, it triggered Buy order at 413 and when till 416 and again cam down. You know why? Thats because, 415 level is the Resistance level. You entered into the trade exactly at the resistance level. Above 415, the stock was unable to hold and came down.
So you need to check if NR7 signal supports ur technical chart. If both says Buy, you can buy.
Consider another stock where the NR7 signal worked:
AuroPharma:
Stock gave buy signal as per NR7 around 285. And closed around 293 with a profit of around 14000Rs. Howz that possible?
Check out the chart:
Few days before the stock after reaching it high of 287 started falling down and reached its support levels of 270's. Again stock started its up trend and today broke the resistance 285 levels and was able to sustain that level. As the level sustains and even EOD close is above 285, the stock may starts its uptrend again and keep moving up.
Going long on Auropharma with STOP LOSS as EOD Close below 287 is a very good opportunity.