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

Monday, February 24, 2014


Nifty gaped down near RN 6150. IR Formed. Long on break of IRH. My target was PDH. But price went above PDH and traded in a range. TP inside the range. Another long on BO of tight range high. Target was BRN,but shaken out of trade before that. Tried a short trade on TST of BRN. Scratched on TRAP.Ended as a type 1 trend day.


  1. Hi ST

    How to trail he position inside the range, particularly if the trade is still in our favour??


  2. The place where you took the first BO trade, I would have waited for a BPB. However, still, I would not have taken the trade because of PDC and PDH immediately above. What made you ignore these possible resistance areas? I could not identify any trading entry area today.

  3. ST,what is the average points made on Nifty over 1 year.
    Reason for asking: When you started to trade full time , you had a number in mind. Curious to know how much you exceeded above that :).

  4. TBP

    You can use swing pivots or other prominent levels. RN,IRH.PDC etc on today


  5. PAT
    If you wait for BPB. There will not be any space.I was not much bothered about PDC as I felt there could be enough stops above IRH to take the price to PDH. My target was PDH, but it went further.

    The range above PDH was a great opportunity to go long.
    Trend was up, price never pulled back to PDH after break. A buy anywhere in the range with stop below PDH was within 10 point risk. It was a MC range where you can go long on break of an extreme with a stop on the other side. Price gave another BPB entry to target BRN.


  6. Sir good evening ,sir on 21-02-2014 trade in 5 min t/f can 9.35 a.m candle can be taken as MSP,kindly update thnx

  7. xtrader

    My target was 10 points a day on an average and I am able to meet this for the last 6 months since I started trading full time.

    The method is still evolving and I am actually experimenting with some other patterns and entry techniques.


  8. ST,
    When you talk about ensuring sufficient space for the trade to move (reference to your SCORE blog post), typically how do you make the decision? Is there a fixed point such as 10-15 that is the minimum required? Or other criteria such as positions of existing SLs etc. If R:R is good, even if FTA is not too far away, would you enter?

  9. PATrader

    Price action trading is neither pattern trading nor rule based trading.There are many ways to deal with FTA
    Decision is depended on the strength of DP/trouble area.

    Nature of trend also matters

    You have to make a decision as per your assessment of the available information. It all depend on your feel and read of the market.


  10. Rajesh,

    Nice blog,

    Summary of your trading logic

    1.Identify decision zones (support / resistance zones) where there is high chances of good trade entry (good Risk to Reward Ratio) with stop loss taking into account PDH,PDL,PDC,IR,Pivots,BRN etc.

    2.Identify decision zones (support / resistance zones) for exiting the above trade for getting the reward estimated earlier

    3.Good trade exists at the extremes

    We do not know which trade would work which would not and hence should follow the process for each /every identified situations as described above

    As anything can happen any time in markets not withstanding our reading of the market....

    Thanks and Regards,

  11. ST,
    Would you trade a break out downwards below todays tight range ?

    thanks n rgds

  12. Kishore

    It depends
    1.I wont trade a direct break of range low but will prefer an entry below the PDH
    2.If the break of range low happens after a BOF of range high, I will short the break of range low


  13. Rahul

    1.Decision points are not support or resistance. They are price levels where market takes a decision about the future move. Our action will depend on the markets decision.
    2.DPs are time frame, indicator independent levels which is visible and obvious to all the traders.
    3.The core concept is the price acceptance and rejection of Decision Points. Everything else is tactics
    4.Our duty is to take all good RR opportunities and manage the trade as efficient as possible


  14. Rajesh,

    Thanks for the feedback.

    I normally draw my decision points (especially for trading days) based on previous days and also when the market had traded in those ranges in earlier days. It helps to understand where the market most likely to pause / accelerate.

    You may check it out for yourself.

    Does not confirm with your trading logic ....

    Sometime I do additional confirmation based on volume but since your blog is restricted to price action and do not want to create confusion with your readers.

    I read lance regularly and got blog details from his site and had adapted his book to nifty.

    The path to market success are many but select a process and follow it diligently for you never know which trade clicks !

    The path to atma are many select one and follow it diligently for you never know when you would get moksha as the return ticket is booked but the data and time is not known...

    Keep up the good work !

    Thanks and Regards,

  15. Sir good evening sir i am unable to understand from your write up of micro,minor and major trend of MSP and how they can be judged,kindly update when time permits thnx

  16. Amber

    Don't confuse yourself with all these trend definitions

    MSP is the pivot low immediately preceding the highest high in an up trend and the pivot high immediately preceding the lowest low in down trend.Crack of MSP is considered as trend change


  17. Sir good morning and thnx very much


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