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

Tuesday, February 11, 2014

11022014


Nifty opened within previous day range. IR formed. Short below IRL. Price refused to go below previous day range.Scratched the trade.Shorted on BOF of PDH below day open. This trade also did not move as expected.Covered at range low Rest of the day it chopped within the range. No other trades.Volumes have dried up. 127000 lots today as well as yesterday.
Level marked as IRH is really IRL. Sorry.Cant change it now

23 comments:

  1. Sir,

    I took the first trade with the same result and didn't take any other trade.

    I refer to your BOF trade. Where did you keep the initial SL?Where was the SL at 12.48 Noon? Didn't the green candle at 12.48 Noon breach the flipzone?

    I think that you didn't move the initial stoploss as the Range was too narrow and just exited as soon as the price reached FTA. Need your guidance on how to play such a narrow range.

    Thanks
    S.Karthikeyan

    ReplyDelete
  2. Hi ST,
    Took two trades today
    i) BPB of IRH/DO
    http://i.cubeupload.com/dEv1W0.png
    ii) BOF of IRH/DO
    http://i.cubeupload.com/hHjNq5.png

    Though it was very clear to me in the morning that i was fiddling with the middle (DO was the middle of yesterday's range on my chart), took the chance and ended the day with minor loss.

    Should it be completely avoided?

    Thanks

    ReplyDelete
  3. Dear ST,

    BOF of range high and short below 2:30 candle. This was not a valid trade because BO did not broke the day high??
    Please suggest.

    ReplyDelete
  4. SK
    My stop was above entry bar high.
    at 12.48 stop was same.Risk was 3 points.There is no point in lowering the stop by one point to the lower minor swing high
    I exit the trade at FTA in such narrow ranges.Price was coming down in a narrow grinding channel. 12.48 bar was a TRAP after which the trend accelerated.

    ST

    ReplyDelete
  5. URD

    You have not ignored tails for PDH I think.I feel my levels were correct as price reversed on BOF of PDH, before reaching BRN.
    These tails and overshoots are very tricky. For example yesterdays evening swing high acted as a flip and gave support. But there was a little overshoot.Real level was at 6070. The next four touches confirmed it. If you draw a line accommodating this overshoot you will miss the next signals.
    We will not be able to avoid this completely. The only thing we can do is to trade the extremes and give some room for the trade to chop around.
    Regarding IR I am going through old charts.First directional move of the day is important it seems

    ST

    ReplyDelete
  6. Anon

    It was a valid signal and a short below 2.30 candle and trade hit the target. But notice how market was chopping around since 12.30. Very dangerous to trade this chop. So stayed out

    ST

    ReplyDelete
  7. ST Sir,

    I presume you have mentioned IRH near your first trade on the chart instead of IRL. Please clarify.

    Regards,
    KSG

    ReplyDelete
  8. KSG

    You are right.
    It is IRL. sorry
    ST

    ReplyDelete
  9. Sir,
    You kept the risk at just 3 points. We have to learn a lot from you in accurately judging the invalidation point. If I had taken that trade, I had to keep the Range High as initial SL, inflating the risk. That is the reason, why I didn't take that trade.

    I would like to make a request to you.Please consider marking the initial stop loss also in the charts, at least for a month. It will help newbies like me on how to judge the correct invalidation point with least risk exposure.

    Thanks for the nice explanation.
    S.Karthikeyan

    ReplyDelete
  10. Hi ST,

    Thanks for reply. I was not ignoring tails for PDH, PDL till now, but now onwards i would certainly try to experiment with adjusting tails.

    Regarding IR, i thank you for your attention and helping me out.

    ReplyDelete
  11. Good Evening ST,
    Just sharing a thought...
    As BOF happens more than BO at BRN, what if we do counter trend trade between XX90to XX99 or vice-versa without waiting for BOF signal. SL shall be BO of BRN. 50% success is enough with RR of 1:2.

    I am thinking to do paper trade it for 2-3 months before next course of action...what is your view....

    Sorry if I had raised any out of content question, as no technicals behind it...


    Regards

    ReplyDelete
  12. Sir,

    I have been following your trades for a while, learning a lot from you, and trying to trade using 3m candles. However, I keep struggling with focussing on what is going on: three minutes are too long and boring. The 1m candles, on the other hand, are just too fast for me. I just wonder what you are doing during those 3 min, until the next candle appears to keep your attention and motivation, especially for a longer period of time with no chance to act?

    Thanks, Zoltan

    ReplyDelete
  13. Zoltan

    I do not stare at the screen and analyse each and every candle.Monitor closely when price approaches a DP.
    If you find 1M charts comfortable you can very well trade the method on it.DPs are same for all.

    ST

    ReplyDelete
  14. Sanjaya

    You are on the right track. Real professionals trade like this. But requires a lot of confidence.There are many situations where you can try this
    http://screencast.com/t/7Sa957NZY1W

    Enter as close to the level as possible and leave space beyond the level.
    Kindly share the results with us

    ST

    ReplyDelete
  15. Sanjaya

    Just now did a touch trade on PDH.

    http://screencast.com/t/EeEjZiSDrMgH

    Do not try to do it on BRN and rely on statistics. Do it on DPs including BRN if other factors are favourable. I ignored the BRN because market has broken out of consolidation after two days and a trend can be expected.

    ST

    ReplyDelete
  16. Hi ST,

    Nice to see your touch trade. Did you really book it? If yes, why did you book so early, especially after a BO of two days range, and not trailed it.

    ReplyDelete
  17. URD

    I am still on board
    will exit if 6120 flip crack

    ST

    ReplyDelete
  18. Thanks ST

    Exit on flip crack, why?
    Reason
    i) Trend seems to be maturing as there are upper wicks at top (top three candles).
    ii) Almost 30 pts up move without any consolidation.
    iii) Critical mass is long, will book at first signal (flip crack).
    iv) It seems like it completed three impulsive waves.

    Correct?

    ReplyDelete
  19. URD

    ALL the three
    Plus the last impulse may develop as a range. Range between MSP and HOD. Waiting for the next signal. Will we get a TRAP?

    ST

    ReplyDelete
  20. Thanks ST

    Yes, range is there now, seems MSP is holding. What about touch trade at MSP?
    Look at the support blue line is giving at MSP.

    http://www.mql5.com/en/charts/1442110/nse-nifty-m3-gci-financial-ltd

    ReplyDelete
  21. Dear ST,

    thanks for the great advice. I will follow it. Good luck with your trading. I will certainly follow your great blog.

    Zoltan

    ReplyDelete
  22. Dave

    "If you have a new hammer, you tend to see every problem as a nail"

    ST

    ReplyDelete
  23. Good Evening ST,
    Thanks for encouragement....Almost everyday price goes to retest DP (Mostly BRN, LOD & HOD)...& a good opportunity lies there with low risk.

    I will try to do some selective TT trades as per situation....

    Regards

    ReplyDelete

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