HFCL Ltd. Resistance Rejection Sell Setup - 5:1 Risk-Reward Rati
Description:
This setup on HFCL Ltd. demonstrates a resistance rejection pattern with a focus on high-probability sell trades. The steps in this trade idea are as follows:
Candle Identification: We start by identifying a candle that has closed above the all-time high.
Candle Confirmation: The next two candles should close below each other, confirming a resistance level.
Resistance Confirmation: The continued closing of candles below resistance indicates strength in the rejection of this level.
Sell Execution: A sell trade is initiated as per the strategy, with a stop-loss placed at 160.00 and a risk-reward ratio of 5:1.
The target for this trade is set at ₹139, and the stop-loss is placed at ₹160. This setup provides a clear framework for executing trades with proper risk management.
