#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
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New 20 period high should have been made today.
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Previous 20 period high should have been made minimum 3/4 days before.
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Close above previous 20 day high or not is optional.
(2/n)
How to implement?
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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.
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Stoploss : few tick above Latest high
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Target : 1:5 R:R achievable (trail stop after 1:2 R:R)
(3/n)
Rules For Buy
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New 20 period low should have been made today.
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Previous 20 period low should have been made minimum 3/4 days before.
-
Close below previous 20 day low or not is optional.
(4/n)
How to implement?
-
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.
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Stoploss : few tick before latest Low
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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 <div class='jekyll-twitter-plugin'><p>There was a ‘Not Found’ error fetching URL: ‘https://twitter.com/Pathik_Trader/status/1129979423145336832/photo/1’</p></div>
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#RELIANCE
The best one, never seen that price back on screen after this. <div class='jekyll-twitter-plugin'><p>There was a ‘Not Found’ error fetching URL: ‘https://twitter.com/Pathik_Trader/status/1129980168003497986/photo/1’</p></div>
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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.
https://t.co/JCujAUAROh
[@Pathik_Trader](https://twitter.com/Pathik_Trader){:target=’_blank’} @threader_app compile
Thank for valuable information [@Pathik_Trader](https://twitter.com/Pathik_Trader){:target=’_blank’}