Reliance - Bearish Bat
Reliance has shown a bearish bat pattern.
However, the last leg of the pattern was super strong, so no trading as of now. People holding in cash may hedge with a put option.
Shorting call options can be risky when the stock has such a momentum!
This material is just to introduce the Bat Pattern. As per Scott Carney -
A Valid bat pattern has the following characteristics -
B point at a less than a 0.618 retracement of XA, preferably a distinct 50% or 38.2% retracement. (47.2% in this case)
BC projection must be at least 1.618. (2.0 in this case)
AB=CD pattern is usually extended. (1.618 AB = CD in this case)
0.886 XA retracement. (0.887 in this case)
C point with range between 0.382 and 0.886. (0.825 in this case)
Minimum target is 2080
Second target is 2050
Stop loss is 2231
The reward:risk is not favorable in this trade.
Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
However, the last leg of the pattern was super strong, so no trading as of now. People holding in cash may hedge with a put option.
Shorting call options can be risky when the stock has such a momentum!
This material is just to introduce the Bat Pattern. As per Scott Carney -
A Valid bat pattern has the following characteristics -
B point at a less than a 0.618 retracement of XA, preferably a distinct 50% or 38.2% retracement. (47.2% in this case)
BC projection must be at least 1.618. (2.0 in this case)
AB=CD pattern is usually extended. (1.618 AB = CD in this case)
0.886 XA retracement. (0.887 in this case)
C point with range between 0.382 and 0.886. (0.825 in this case)
Minimum target is 2080
Second target is 2050
Stop loss is 2231
The reward:risk is not favorable in this trade.
Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
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