ATH Rules

06

Stoploss 1: Maximum of (Buy Entry - 25% or 20 Months Simple Moving Average)
Stoploss 2: Maximum of (Buy Entry or 10 Months Simple Moving Average)

For Instance: For SL 1, the Buy Entry of ABC stock is 515.1
SL 1 = {Buy entry - 25% (515.1 - 25 %)= 386.5 or 20 SMA (390)
In the above case the 20SMA is higher than Buy entry - 25% so your Stoploss will be 390
SL 2 = 515.1 or 10 SMA (490)
In the above case the Buy Entry is higher than 10SMA so your Stoploss will be 515.1

NOTE:
*Stoploss 1 will be applicable until we achieve Target 5. after that Stoploss 2 will be applicable which is a Trailing Stoploss & Target 6 Qty will be exited as per Stoploss 2
*Previous Month SMA Value will be Current Month SL Value.

05

Quantity As Per Target to Exit
1. Target 1 = 20%
2. Target 2 = 20%
3. Target 3 = 10%
4. Target 4 = 10%
5. Target 5 = 10%
6. Target 6 = 30%

For Instance: You have 100Qty of ABC Stock, so you will book the target as follow:
Target 1 = 20 Qty
Target 2 = 20 Qty
Target 3 = 10 Qty
Target 4 = 10 Qty
Target 5 = 10 Qty
Target 6 = 30 Qty

04

There will be 6 Target as follow:
Target 1 = Buy Entry + 12.5%
Target 2 = Buy Entry + 25%
Target 3 =Buy Entry + 50%
Target 4 = Buy Entry + 75%
Target 5 = Buy Entry + 100%
Target 6 = APS

Target 6 will be applicable after achieving Target 5,
Target 6 will be a Trailing Stoploss.
which will be explained in the Stoploss rule.

03

Entry = MCC High + 1%

For Instance: The ATH of ABC company is 500 & The Monthly Confirmation Candle is formed on Nov'22 as follows: Open - 490, Close - 505, High - 510, Low - 450.
So, your Entry is MCC High + 1 %
As per Above Example, it will be 510+1%= 515.1

02

Monthly Confirmation Candle Should Close Above ATH

1. Monthly Confirmation Candle is called MCC.
2. Always Check MCC at the end of the Month.
3. For Instance: the ATH of ABC Company is 500 & the high of the Oct'22 Candle is 520 but the Close is 490 than Oct'22 candle is not the monthly confirmation candle, as close of Oct'22 was not above 500.
But as per above example now we have a new ATH which is 520, so in the next month we have to check if the stock have closed above 520.

01

Check All Time High Till Previous Month

What is the Highest Price that stock has ever traded till the previous month since the date of Inception?