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

Wednesday, January 22, 2014

22012014


Nifty opened within previous day range. Broke below PDL and BRN.Then bounced back. Went long on the break of IRH/DO. TP when BO of PDC failed. Attempted a short below MSP /PDC /. This trade failed. Thought of going long above the range high as it was a TRAP pattern . This trade did not trigger. Nifty channeled down for a while and suddenly spiked breaking PDH and RN and finally closed above PDH.
I wonder what was the reason for this sudden spike. It was not in Bank Nifty.I don't like the opening and closing price action. Something is cooking up.

29 comments:

  1. Sir,

    Went long on the break of DO with a stop @ 6303.

    When price at PDC checked the OI of 6300 PE there was a good amount of addition, so kept it till exit at 6354.

    Thanks
    Raghu

    ReplyDelete
  2. Hi ST,

    Big boys playing their games I guess.

    Tried attempting a SS today??

    was it valid??

    Plz click here

    Thanks

    TBP

    ReplyDelete
  3. Hello ST,

    Nifty seems to be moving in a tight channel since 20th. I had noticed it forming on 20th itself and saved some bad trades. I've noticed DP's don't seems to work if they fall with such a channel. Do you think this gives a better picture as it might give us trouble areas. The initial spike as well as the fall happened at the channel extremes. Here is the link for the chart.

    http://s13.postimg.org/fty553gbr/nifty.png

    ReplyDelete
  4. Nikhil

    It may help
    Many tools can give us such clues.
    But the problem is we will not be able to move around with this heavy tool box. Less tools more comfort

    ST

    ReplyDelete
  5. Raghu

    Good trade.
    I do not understand this option stuff

    ST

    ReplyDelete
  6. ST,
    Why didnt you attempt BOF trade immediately after your first long..
    ??

    rgds
    Kishore

    ReplyDelete
  7. Sir, please don't publish this as its out of DP subject,

    many believe that options will decide the levels of nifty as it occupy 90% of the exchanges total turnover.

    so when ever the nifty trades near BRN I prefer to check the OI of calls and puts so to get some clarity on on possible direction.

    thanks
    Raghu


    ReplyDelete
  8. today break out failure was good sign for go long but i hesitated finally i take short position when third break out attempt is failed my target was BRN of NS but hit my sl of previous days high about 14 point sir where was the real stop loss this trade.......? and what is major swing point....? replay me pls

    ReplyDelete
  9. Kishore

    For both the BOF trades of PDC the target is 6320 flip zone. Both the trades are counter trend trades.Very low probability trades without sufficient space

    Now think about the stops. Most of the traders have gone long on the BO of 6320 high.Initially their stops will be below this BO area.
    When price broke broke above PDC and stayed there for a while these people might have shifted their stops below PDC to protect their profit.
    I was betting on this order flow to take a quick trade.But trade did not work as expected.

    ST

    ReplyDelete
  10. Anoop

    Do not trade the method without knowing the concepts well

    You took a counter trend trade against a Multi layer BOF move.
    You were trading against three strong barriers namely. DO,PDL and BRN. A trade with zero chance to succeed.
    You took the trade when price failed three times to breakout.Once this breakout happens the reason for trade is negated . Exit on breakout

    ST

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  11. ST..
    What about the first trade in relation to trend ?
    Wasn't it counter trend ?

    rgds
    Kishore

    ReplyDelete
  12. Kishore

    No my trend definition is different.
    For me market is in a range all the time. An up trend is successive higher ranges and down trend successive lower ranges.
    In the morning price attempted to move into a lower range and failed. So the bias is up
    Please do read all the important posts listed.
    Till you understand the concepts well do not trade the method

    ST

    ReplyDelete
  13. thanks ST
    Being a trend follower for some years finding difficult to see things in a differrent perspective :)..
    I have gone through the posts...
    Will go through them again


    rgds
    Kishore

    ReplyDelete
  14. Hi ST,
    Do you use any filter ?
    Is yes what is the value ?

    rgds
    Kishore

    ReplyDelete
  15. sir on my trading terminal previous days close was 6326.40 and you marked at 6330 what was the real closing rate ...?

    ReplyDelete
  16. sir what is today's closing rate...?

    ReplyDelete
  17. Hi ST
    Is this post still valid ?

    http://niftynirvana.blogspot.in/2012/02/trends-and-ranges.html

    You are talking about the the trend which I am familiar of ...


    rgds
    Kishore

    ReplyDelete
  18. Anoop

    yesterday Ichart shows 6238.95
    Today it is 6344.90
    Consider levels as narrow zones. Tolerate little overshoots

    ST

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  19. Kishore

    Usually I use 25-50 paisa as margin and enter trigger price

    ST

    ReplyDelete
  20. thank you sir i will become a smart trader like youuuuuuuuuuuuuu

    ReplyDelete
  21. Hi ST
    What is the significance of yellow lines in this post

    niftynirvana.blogspot.in/2012/05/trading-ranges.html

    rgds
    Kishore

    ReplyDelete
  22. Kishore

    That is still valid.
    I have taken it a step further.
    Every wave in a trend is a probable range.The conventional approach will not work well for day trading. Market rarely trend like text book fashion

    ST

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  23. Kishore

    With yellow lines I have explained that ranges can overlap. Second yellow range need not be above first one. It can overlap

    ST

    ReplyDelete
  24. Kishore

    Post the comments below respective posts.

    ST

    ReplyDelete
  25. sorry ST
    couldn't see the comment box like the one here..
    but found it

    thanks!

    ReplyDelete
  26. Hi ST,
    My chart did not gap and opened a bit differently. In this case, where would you take the first trade that you have taken? http://imagizer.imageshack.com/img913/819/rQwYdS.png Thanks.

    ReplyDelete
    Replies
    1. May not.
      I think I would have gone long above 6320 only

      ST

      Delete

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