By: Manish Patel
STRATEGY 1: BUY AT SUPPORT AND SELL AT RESISTANCE
Daily we gives you support and resistance level for each commodities. This supports and resistance are too strong to break. If they are broken then you will see the price will move in that direction. So, what you have to do ?
For example. We have mentioned support in COPPER at 178-180.
ENTRY: You should enter between this level of 178-180. Many times you finds that commodities turns from around 180.20 and move high. This is because many peoples buys at supports and they put their orders few points above Supports. So if you finds many buyers at this level then you can buy at few ticks above Supports. In this example. at 180.10-180.30.
TARGETS: As mentioned earlier you should put targets of about more than 1%. May be in the range of 1%-3%. In the above example. our targets would be of 182 at 1% or more.
STOP LOSS: This is the part which most traders hates. They don't exit if stop loss are triggered. Stop loss are part of trading. They keeps your profits safe which you have incurred in earlier trades. In our system if you are in profit then we suggest you to trail stop loss. So, now how to trail stop loss ? If your 1st target is achieved then trail stop loss at entry price. If your 2nd target is achieved then trail stop loss to 1st target. If you find it difficult in doing this then you can book profit at your convenience. Now if your targets are not matched then what ? Put stop loss few ticks below the final support . In above example. few ticks below 178. We mention few ticks below support because many traders puts stop loss below this level. So, if they have put stop loss at 178 then there are chances that it can touch 177.70 because of stop loss placed by them. Price touches this level and quickly recovers. So, if you find that it is has sustain for more time then exit.
Same practice is true for resistance level
STRATEGIES 2: SELL ON BREAKOUT OF SUPPORT AND BUY AT BREAKOUT OF RESISTANCE
It is common practice that if supports are broken that it becomes resistance and if resistance are broken than it becomes supports.
Lets take above example. of COPPER support at 178-180.
ENTRY: There are chances that this type of calls also occurring. If price breaks support of 178 and sustains below this level for few minutes then you can sell at the current level. If you find this difficult than there is one trick which may helps you. If price breaks by more than 0.40$ to 0.70% then sell.
TARGETS: As mentioned earlier you should put targets of about more that 1%. May be in the range of 1%-3%. In the above example. our targets would be of 175 at 1% or less than that.
STOP LOSS: In our system if you are in profit then we suggest you to trail stop loss. How to trail stop loss is mentioned in above strategies. And the same thing is for if you are not in profit. Put stop loss few ticks above the resistance of 180.
Same practice is true for resistance level
Conclusion
Both strategies are widely used and results are good for both. Chance of trading occurs are more in STRATEGY 1 than in STRATEGY 2 when markets are sideways. But success ratio are high for both. If you have referred to past support and resistance levels given by us then you will find that trading calls occurs in both strategies and success ratio are high. If you have not referred than you can find the proof of success ratio by referring this link MCX Tips And Newsletter. If you have your own strategies then you can apply to our support and resistance level.
If your targets or stop loss are not triggered on same day then you can carry position for next day.
We personally advice you to trade any one strategy at beginning. Once you get grip try other and then you can trade on both.
Final words
It is better not to trade than to trade a risk call. Remember one rule MORE TRADE = MORE LOSSES,
We hope this strategies and our MARKET COMMENTARY will be useful for all traders.
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