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

Wednesday, June 27, 2012


Nifty gaped above PDH. Did not move above the first candle with topping tail.Expectation is a range move between PDH and first candle high. First signal was a short at HOD-DT . I would have taken profit around point marked A. Notice the point marked A. If you were not short from the HOD, you will surely go long here as BOF of PDH and will get stopped out.If your trade at any DP fails never reverse a trade. Most of the time it will chop.


  1. Dear ST,

    No Decision Point trade today also.Saw the BOF, but Day Open horizontal support/resistance line was marked on chart and was immediately below. Isn't Day Open a decision point? What prompted u to take the trade other than DT ? Is it the HOD rejection by forming a gravestone DOJI ?


  2. Ajith

    Day open is a decision point as long as it remains a decision point.
    Notice how many times market has broken it to the upside and downside.So it loses the relevance.Dont consider DP as a brick wall.
    You can consider this as a barbed wire around a DP. A wide one.Trade it as arange. So sell high and buy low.


  3. thanx.. ur concepts helping me in judging my positions... thanx for the efforts... gone throgh more than 50 books .. but dont remember to see simple concepts like here..


  4. Ratnakar

    Thanks for the compliment.



Note: Only a member of this blog may post a comment.