There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Thursday, June 14, 2012


Another data announcement day. Earlier I have lost a lot of money trading on  these volatile days. So usually I stay out till the market stabilizes after the announcement.I was attending office today and may not be able to take leave for a few days.I will analyze the chart in hindsight and will try to explain another concept.

As I have written many times the core concept of my trading is the acceptance and rejection of price at decision points. The second concept is that the market is always in a range and the decision points are probable range extremes. A trend is simply a series of range breakouts.. I try to sell the range highs and buy the range lows.I had written earlier about this concept If you have not read it , Read it

Today Nifty opened within previous day afternoon range marked Range 1. Buy the Trading range low. BOF of MSP ( Major Swing Pivot). It would have gone up till PDH the range high. But on inflation data market sold, broke the range low and found support at PDL. Now we are in range 2 between MSP and PDL sell high and buy the low. But notice the new range is below the previous one and inflation data is disappointing. Bias is clearly  bearish . So selling  the high is the high probability trade. Sell the BOF of MSP.

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