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

Thursday, January 23, 2014

23012014



Nifty gaped down. Failed to go below yesterdays demand zone. Went short on BOF of PDC which was also the gap closure. Covered the trade at a small profit. Avoided the second BOF as price did not go above previous attempt and did not trap BO longs.Price broke PDC and settled above it in a small range. Avoided the BPB as RN ,NS RN, PDH above it. Shorted when price broke down below PDC.Got trapped . exited at a small loss. Long Above Range High on BOF of range low. It was a TRAP pattern. TP at PDH. Avoided BOF of PDH as there was very little space.Learn to trade short term ranges

30 comments:

  1. Hi ST

    Thanks for a great explanation of formation of zones...

    TBP

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  2. Sir good evening , sir can we take 2.15 p.m candle as MSP , thnx

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  3. good evening sir today I took one short position with first break out failure and covered with two point loss and avoid long trade at this level because 6350 was major resistance of NS

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  4. sir how can take position with fast break out ?

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  5. Hi,

    These Ranges remind me of Darvas Boxes but Colored ones !!
    Easy to understand for us!

    Thanks..

    Deven Malhotra

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  6. Sir, There was very good volume at BOF of PDH and I thought that sufficient number of traders were trapped and the resultant momentum will take the price down to PDC at least.But the previous Range or swing pivot blocked the move. What was wrong with my thinking and how I could have avoided this trade?
    S.Karthikeyan

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  7. Amber

    13.12 candle low is MSP
    TRAP is the BOF of this MSP

    ST

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  8. Anoop

    Why you made 2 point loss. Trade moved in your direction and very slowly retraced. You had enough time to exit at a small profit

    ST

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  9. Anoop

    Identify the BO location early. Enter a Stop loss limit order and sit tight till breakout happens. If BO fails just get out with minimum damage

    ST

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  10. Devan

    Darvas Boxes are tradeable.He made millions with these boxes.These boxes are nothing but ranges formed between support and resistance

    Unfortunately people do not like to use their brain and think. They are in search of AFL to plot PDH and PDL.

    ST

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  11. SK

    The logical target of every trade is FTA. Here it was the range high flip. Price went exactly where it was supposed to go and bounced.

    We are acting on the available information. Reality can be different many times. If price is not moving as expected, simply get out without much damage and look for the next opportunity

    ST

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  12. ST,
    All my trades matched with urs except one ...
    I thought there was a TRAP pattern as the MSP was broken at the second attempt at PDC around 11 30 and went long on the next BO

    rgds
    Kishore

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  13. Sir, I should have observed the price action intensely, as it encountered Range high and swiftly acted to get away with minimum profit or minimum loss. Thanks for the clarification.

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  14. SK

    Read

    http://niftynirvana.blogspot.in/2013/01/scratch-and-win.html

    http://niftynirvana.blogspot.in/2013/06/re-read-and-rediscover.html

    ST

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  15. Sir,

    It look like you said "Learn to trade short term ranges" to me.

    Lack of focus and space a unproductive combination.

    Could not even pull the trigger.

    Raghu

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  16. sir,very very thanks for your valuable advice

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  17. Hi ST

    Thanks for Scratch and win post.
    Need of the hour where no trade is trending

    TBP

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  18. Sir, Thanks for understanding my position and suggesting the way out. I am really touched by your care.

    I will read, grasp, follow and become a better trader. No words to express my gratitude.
    S.Karthikeyan

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  19. Congrats ST! I'm really happy that your hard work is helping out so many new traders. Fantastic job!

    One suggestion - please see if you can put a link to important posts so that you you don't have to do it every now and then.

    Thanks and regards,

    suinl saranjame

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  20. sir, why you don't trading on commodity with this technical tools .....?

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  21. sir, kindly publish today open-high-low and close with chart

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  22. SS
    Thanks
    I have listed all the important posts at the bottom. All important posts are separated and given under sub headings "Rants and Raves" and "Structure and Patterns"

    ST

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  23. Anoop

    I do not care about these numbers at all other than BRN. While trading I remove even the grids.For me trading is a visual process just like playing a video game

    Life is not trading alone. I cant sit in front of the computer till midnight

    ST


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  24. Hi ST,
    now a days too many discretion's
    you are using new words like trap to cover the draw back of the system as you said no static hedge
    GV

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  25. GV

    Thanks for the comment

    1.This is a pure discretionary method of trading. Trading methods evolve over time and many tweaks to correct the weakness may be required.How many is too many?
    2.The method has its own weaknesses and drawbacks. I am well aware of them and I never wanted to cover it up. So many times I have openly admitted about the inability to deal with Barbed Wires and Channels.
    3.For your information trap is not a word but a pattern called TRend Acceleration Pattern(Called TRAP in short)Click to read
    4.TRAP is not my brain child. It was a contribution from a serious follower of the blog MR.U R Dave.He made a guest post here to get some feedback.Go through the comments and find out if there is any worthy contribution from the readers side.
    5.I have introduced a tactics called Sniper Shots to solve the problem of price bouncing from FTA.
    Click to read
    Notice the feedback from readers.
    6.If I can develop a method up to this level from zero, I am confident that I can refine it further and solve the drawbacks on my own
    7.I am under no compulsion to share my observations here. I have not collected any money from anybody.Just a mouse click is enough for Nifty Nirvana to vanish from public domain.
    8.So much of my quality time is being spent on answering comments and replying for mails.If you cant appreciate it, no problem.I am internally motivated.
    9.I never claimed to be a great trader.Time and again I have made it clear that I am still a single lot trader and a work in progress. But I trust the method and have quit a cushy well paid job I could have continued for another 11 years to chase my dreams.
    10.The method has holes in it and I am trying to plug them one by one.There will be more and more discretion.If you cant tolerate it, you are under no compulsion to follow this.

    ST

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  26. Hi ST,

    I am writing this comment as a supporter of DP trading.
    I have been trading this method from the past 2 months.
    I have found that DPT makes one less anxious. Even before getting into the trade one can know the SL and the first target.
    Initially looking at ur charts, I thought I would I trade without any indicators.(I used MACD).
    Now I dont use any indicator and to good effect.I love my charts to be clean now only with appropriate horizontal lines.
    Never ever did I think that DPs would make so much of sense.
    DPs work like charm and the only one to sabotage that working is we ourselves.
    Even with DP trading I have made mistakes while trading which I could have avoided but the cost now is very less.
    I dont think I am going to leave this method as long as I am going to trade.

    A BIG THANK YOU for your work and devoting ur precious time towards trader development.

    May GOD BLESS YOU always!!!

    TBP

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  27. TBP

    People preach not to search for the Holy Grail but go on doing the same.
    If anybody could find such a method ,he will own the entire planet in no time.It just cant happen as it is against the laws of the universe.

    ST



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  28. @GV

    Just based on DP method now I am holding short from 6330.

    That's the magic

    You were talking about present discretion's but some of my own!

    Raghu

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  29. trolls will be trolls.

    thanks for taking time to reply so many questions.
    If it ever becomes too much please consider replying only to some questions / reducing post frequency rather that stopping altogether

    SS

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