Wednesday, April 4, 2012

Wise words from Illango 002

Part booking & re-entering comes only with experience.

There are few methods to follow to reach there:

1. Observing the price cluster points in an hour chart of 30 to 50 trading days would guide you on the likely price points such as the recent one being "5382".
2. Understanding the maturity of an upmove/ downmove and the different T/F technicals would guide you to hold back on profit booking if the trend is still young. Hour TA with +ve or -ve div are good points to part book. 75 to 120 points away from the recent top/ bottom is a good place to re-enter. Re-entry should be avoided if a threat of reversal looms.
3.Knowledge of EW helps to understand various kinds of wves/ retracement possibilities for part booking & re-entries.