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On May 6th, Sudarshan Sir pointed out in his post ‘ Catch the trend’ on how strong uptrend is Arvind in. It been more than a month since then, but the trend continues, along with the markets.
A look at its recent chart gives us one more example of a classic formation of a trading range, and a breakout of the same:
The momentum seems so strong that even on a day as today’s, when Nifty fell over a hundred points, Arvind holds its breakout price above 208-2010 on a closing basis. No one can predict if it will continue to hold the same, or break down. But it definitely calls for our attention!
NTPC: long term breakout
If we remember, Sudarshan Sir had quoted NTPC in his post ‘Pattern of the Month – March 14’ posted on April 3rd. In that chart, we saw how it formed a classic bullish Head & Shoulders pattern and broke out of it.
As i just revisited a medium to long term chart of the same, i got to see something amazing. You might have noticed it too. If not, have a look:
This classic formation of a downward trading range over a period of more than 4 years, and successful breaking out of the same signals that a strong upmove is coming. Since NTPC is one of those less volatile heavyweights, we cant expect it to run like one of those high beta stocks, but at the same time, such stocks offer less risky and easier trades.
Consistency :A Method To Be Profitable
There are many ways or methods to make profits in market. Some do trading with use of few indicators while some use price action and patterns, and there are a lot other methods which are used by traders. There is a variety of methods, designed according to the ease and comfort of traders. But yet only few makes money in market while most of traders fail and lose money.
When we develop a setup or method for trading, and if it works in market, even 40% to 50%, then we believe it is right and could be used during trading. But these methods can work in market only when they are followed continuously by a trader. If a trader is selecting random methods to pick up trade, then he/she cannot enjoy the real fruits of even a single method.
The only option left for us when we choose a method for trading is, follow it consistently and do not disturb ourselves by trying to be over smart. It is a game of probability and sometimes we win and sometimes we loose, the only work we can do is, cut losses quickly and follow the discipline.
So consistency is one of most important phenomena to be successful in trading. Be consistent in trading, in your method, with your discipline and only than you can expect a fruitful trading.