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

Thursday, March 28, 2013


Usually i do not trade on expiry days. On such days Market is not in control of day traders and DPs will not work efficiently. Nifty opened within previous day range . later it broke PDL. There was no opportunity to short. Later price break above PDL. But  PDC and then HOD was resisting. BOF of PDL gave a long. Most probably those who entered here might have shaken out  missing the move
An up trend is higher pivot highs and higher pivot lows. But crack of any  pivot low is not considered as trend change. Most traders consider the crack of a swing low leading to the highest high as trend change. Here the market in uptrend. A-B impulse move. B-C pull back. C-D impulse wave fail to exceed swing pivot B. Market falls Crack of pivot C is not counted as a trend change. Crack of A is a trend change as it is the swing low leading to the highest high pivot B. Pivot A is a MSP. Hope it is clear.


  1. Hi ST Sir,

    I took BOF of PDL and later moved my stop to 2 points below A, but it was taken out in that sudden move down.Though re-entered above B but missed good 20-25 points.

    Sir plz suggest how could it have been managed better.Did I moved my stop too early?? or Was it one of those spikes which are deliberately meant to take out SLs (probably a thought/reason generated by sub-conscious mind to feel better :) )

  2. Anurag

    You managed it well.
    Being expiry day it was an effort by some big boys to push the price down.They failed and scrambled to exit fueling further rally


  3. Hi, why do you consider/term the move C - D as Impulse ?

  4. Anon

    I used the term impulsive move as the move was in the direction of the established trend


  5. Thanks. My doubt is clear now on MSP. I will try to find the setup in previous charts.

  6. Thanks Sir, for the clarification.


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