ASIANPAINT - Local Bearish Divergence
Updated
Premise:
1. A retrace to the OTE will occur
2. The bullish divergence will fully play out, bringing the price to the OTE
3. This retrace upwards will be in more than 5 candles
4. A bearish divergence will thus appear
Execution:
1. 1:2:3 Short scale inside 1237-1240
2. Stop at 1286
3. Target is a long term support region at 1043 (zoom out :) )
Result:
1. A 6.26:1 RR trade is executed
1. A retrace to the OTE will occur
2. The bullish divergence will fully play out, bringing the price to the OTE
3. This retrace upwards will be in more than 5 candles
4. A bearish divergence will thus appear
Execution:
1. 1:2:3 Short scale inside 1237-1240
2. Stop at 1286
3. Target is a long term support region at 1043 (zoom out :) )
Result:
1. A 6.26:1 RR trade is executed
Note
All premises true. Taking this trade tomorrow.Note
Going to let this play out firstNote
It was a good idea to let the bulldiv pan out. I should always have the OneX Indicator open, it actually called a buy there.Weekly might close as bullish engulfing. Still thinking if this is an ideal play.
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