TCS Swing Trade

TCS Swing Trade

Today we will see a TCS swing trade which demonstrated a perfect triangle breakout and re-test entry strategy.

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On April 15, 2019, TCS closed above a rising triangle (blue lines) and confirmed a breakout. It was a clear BUY on April 15 with a target of 2260, which was a previous high made on Oct 1, 2018.

This was a set up of Entry at 2100 with Stop Loss at 2000 with Target at 2260 which meant a Risk:Reward of just 1:1.6. Since this was not fitting into my trading rules of entering into only those trades that have a probability of 1:2 Risk: Reward, I didnt take the trade. The share price fell from 2260 as expected and I was waitig for a re-test.

On May 27, 2019, TCS share price made a Bullish Harami pattern within the previous rising triangle that the price had broken out of. This was a clear indication to BUY on confirmation. The next day, price closed with a bullish candle at 2073.75, giving a confirmation to BUY at that price.

I bought at 2093 with a stop loss at 2030 and Target at 2260, giving a Risk:Reward of 1:2.65 which fit within my trading plan.

Now that price has moved up significantly to 2196, I have put the Stoploss at 2100 and am waiting for the target of 2260.

At 2260 I will close my position and if there is a breakout above 2260, I will take a fresh look at entry setups thereafter.

Disclaimer:

This is NOT an investment advice as this is a trade already in progress and I am not a qualified investment advisor. Sharing this trade to learn from supporting and counterviews of others who are also interested in technical analysis based trading.




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