Hi Readers,
Today I am going to review my technique, how it really help in making buying and selling decision for any particular Stock. In my previous post I had given buy numbers and sell numbers for 3 stocks, and now when the market are closed for today I am going to review the stats.
OHLC: as on 6th Sept 2016
Apollo Tyres 196.45 203.95 196.25 202.45 (open, high, low, close)
Buy numbers are: 192.05 187.72 186.65 188.80
Sell numbers are: 194.73 199.07 195.90 198.05
From the above information’s we can see that the stock open @ 196.45 and it has crossed the buy number 192.05, and sell numbers 194.73, 195.90. So this stock was in uptrend as I had mentioned in my previous post, and buying this stock can only make us profits. As the stock crossed my sell number 199.07 the demand increased and made day’s high @ 203.95. Therefore if anyone had bought this stock @ 200 today will surely get good profits in coming few days.
HDFC Bank 1290.05 1303.9 1290.05 1300.4 (open, high, low, close)
Buy numbers are: 1277.85 1293.55 1281.15 1281.17
Sell numbers are: 1310.87 1295.17 1289.00 1289.02
From the above information’s we can see that the stock open @ 1290.05 which is near my buy number 1293.55 so buy this stock around 1290-1293 was a good decision and this stock made an high of 1303.9 and did not cross my sell number 1310.87 therefore we must exit around 1300-1303. if you feel like carrying the position then you can carry position with a stop loss of 1289 which is a strong sell number because it has 2 times presence in the sell numbers.
If anyone had done trading in the above two stocks today with my technique especially in options trading a profit of around 4000 – 5000 was achievable with just single lot of call option. With this I am ending my post for today. I hope my readers have understood my technique. I know it’s not very simple, but it’s not difficult also. Please post you questions and comments. Thank you
Happy Trading
Rakesh Bomma
