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

Thursday, March 14, 2013


Price action trading is very simple. But it is not easy. You need to train your mind to pay selective attention to so many small stuff. Consciously paying attention to all these details for the entire session is very tedious. You will burn out within a week.It takes time to develop this habit. Once you achieve automaticity , you will be able to do it without any strain. So simulate the trades on historical charts to streamline the thought process.

Nifty opened near PDL and PDC.. Go long with a stop below PDL ? Wait. Trend is down. No strength unless it trades above MSP. Let it break the flip zone A. Getting rejected. Made a swing high B. IR is not significant and tradeable. Now another push up. Let us see whether this will break B and show strength.. No strength Now price is resting on PDL. No sign of strength. candle closes . Upper tail.Better to short the break of PDL with a stop above point B. Little hesitation 40 point trade gone.

A wide range candle. Next candle fails to close below the WRB. Next three candles trade inside this one. Treat this as a master candle ? Upside no resistance may go till PDL. Down side risky. BRN is there NS & NF. A break down . BOF of NS BRN. 5820 is the near flip zone with three candle lows. Let us go long above the MC  targeting PDL.Let us book profit near PDL.

Wow. Price breaks above PDL and enters previous day range again. Lower range rejected. Could be a reversal day. Now Bias is bullish.BRN rejects price pull back to PDL. Time to try a long. Long above Last significant bar. Breaks BRN. Now stop below BRN. Trail the stop below PDH.Stopped out.


  1. Please , wud be greatful if u cud explain every day in details like today.

    thanx once again.

  2. I was able to execute these trades almost exactly as stated by you.

  3. @ Ratnakar
    @ Nifty Baz

    Develop a story as the price action unfolds.Pay attention to small stuff and imagine scenarios. Better to write it down or type in MS word


  4. Hi ST,
    Thanks so much for this beautiful write up on price action for this day. What a beautiful idea..develop a story as price moves...I will try it from Monday. Thanks again.


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