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Guys, today I will be sharing a trading strategy which is tested a lot of times and works flawlessly.

Our trade setup has 2 important things

1. High volumes

2. Huge selling.

I will share this trade setup on Fortis. This trade is based on 28/03/18.

Fortis was in the news because they are merging their healthcare business with Manipal hospitals.

Technical points

  • Fortis opened with a gap down.
  • There was huge selling at opening but Fortis sustained the levels with 2-3% fall in prices.
  • Prices started falling again around 12 pm and with high volumes. It seems to be panic selling and overall Fortis was down by 15%.
  • After 8% fall in prices, it started reversing around 123. We entered around 125 after getting a confirmation of the reversal.
  • Prices were reversing due to short covering and overselling by investors. The traders who went short on Fortis at 133 started booking their profits. And new investors wanted to grab the opportunity of this panic selling.
  • The prices moved 6% from the recent low and we booked profit at 128.

Below is the trade is done in Fortis.

Highly undervalued stocks Mar 2018

Some trading & investing books.