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

Thursday, March 13, 2014

13032014


Nifty opened above PDC. IR formed between PDH and PDC. Long on the break of PDH. Covered when price failed to stay above NS-RN 6550. Formed a classic Cigarette pattern for two hours. Finally a break down. Cool 50 point trade. TP at PDL.No other trades.

39 comments:

  1. Dear ST,

    I entered the down move at a stop order below PDC and IRL. You entered just below cigarette, you did not expected them to act as a barrier or just chose to ride till those level and then decide further.

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  2. Hi ST

    Could you tell the reason for taking the direct BO entry as long??

    Thanks
    TBP

    ReplyDelete
  3. Thanks for updates.

    Recently started reading your book 'Decision Points'. Can i post my queries related to that book here?

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  4. Jhonny

    Book contain very little information. Go through the important posts listed below the blog for more information

    ST

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  5. Hi ST
    When did you TP for the last trade at PDL ; first attempt or after the pull back ?
    ANd Would'nt you have gone long above cigerrate eevn though HOD was there ..If yes will the entry be above HOD ?


    thanks
    Kishore

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  6. Thanks ST. not aware of this section..will browse through them and will trouble you for explanations..:)

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  7. TBP

    After open, price went up and got rejected. There was another attempt again which also failed.But strong rejections were not able to push price below PDC/RN. The second round of selling ended up forming a higher high Expected some stops above the IRH.

    ST

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  8. HI ST,

    I took PDH at pin bar i.e @ 6579.9, is it ok?

    Ravi

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  9. Anon
    Try to enter as early as possible.
    I will try to enter on BOF of an extreme rather than the BO of the other extreme.If you feel a BO will work enter early and manage it.

    ST

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  10. Hi ST
    Enjoyed the comments on yesterday's post. I also eagerly await.

    Would like to open an a/c. Which online broker would be good?

    Thanks

    ReplyDelete
  11. Kishore

    When second push after the pullback failed.
    Long trade was very tricky with HOD,Highest high and BRN above the level. My order was above HOD

    ST

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  12. Ravi

    I usually ignore tails for calculating levels.Most of the time it work well

    ST

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  13. URD

    Try TSO
    http://www.tradesmartonline.in/
    Cheaper than zerodha @ less than 100/- for a round trip.

    ST

    ReplyDelete
  14. Hi ST,
    FYI..
    http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified

    Has info on Taxation.

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  15. Sir good evening,sir the BO candle marked in the morning can it be taken as MSP,kindly update thnx

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  16. Sir,
    Is there a significant critical mass as of now? Tomorrow is Friday.Your guidance will be helpful to manage our trades towards the end of the, trading session, tomorrow.
    Thanks,
    S.Karthikeyan

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  17. ST, Was there a BOF opportunity at 11:51 and a BPB opportunity at 12:21 candles? And then I also took a TRAP trade at 12:39.
    By the time I realized that it was a cigarette I got whipsawed multiple times

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  18. Sir ,
    In today's trade when you say that your order was above the HOD , than can we place two pending orders in the system at same time?. I mean Buy order above HOD and sell order below Range low and wait for the verdict of cigarette pattern.

    Thanks.
    Arvind

    ReplyDelete
  19. Hi ST
    My todays trades
    http://tinypic.com/r/jinpqc/8

    Was my exit for the last trade OK (PDL marked wrongly..pls ignore)

    I took a wrong trade (2) long over the swing high ...

    thanks
    kishore

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  20. Xrtrader1

    Thanks
    Will go through it

    ST

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  21. Amber

    You have not understood the concept of MSP correctly. Please go through the post once again
    MSP is a swing pivot. Either a swing high or low. Morning BO bar is not a swing point

    ST

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  22. SK

    These are all just assumptions. The easier way is to look at higher time frame charts. If you look at 30 or 60M charts still the up trend is intact. Today actually it was a BOF of range low.We can safely assume critical mass of higher time frame traders are still long
    Once 6500 breaks to the downside, these people will panic, I think. The ideal situation is a morning up move to attract short term longs and a final sell off.

    ST

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  23. PATrader

    Please do stop trading the method with real money.Paper trade it for a while till you gain confidence
    The very basic rule of the method is to initiate trades only at DPs and to HIDE INITIAL STOP BEHIND A DP.
    http://niftynirvana.blogspot.in/search?q=trade+plan

    The problem is you are looking for patterns without paying any attention to the big picture.It is not going to work

    ST

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  24. Kishore

    Yes. You are doing well.

    ST

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  25. Sir thnx, sir as a general guideline when price gets rejected for the third time@ resistance we can look for reversal and today it resisted 4 times @ NS RN and reversed sharply ,kindly update thnx

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  26. Thanks ST for your advise. The fact that I still cannot understand why the BOF was not as per rules means I need to work harder at this. Thanks again.

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  27. PA Trader

    There was a BOF at PDH. Agreed
    But tradeable? IMHO NO. Reason
    1.No longs shaken out here and No stops triggered here. Most of the longs entered on the break of IRH. Their stops are below the swing low
    2.No body will short the break of PDH. Shorts will be created on break of swing low.
    3.There are not many trapped traders.
    4.Where one can enter safely? above 11.30 bar high at 6577.55
    5.Where is the FTA? 6580 the NS RN. Should we trade for 2 poits.
    6.Next Resistance? 5887 HOD
    7.Next? Highest high 6592
    8.Next ? BRN 6600
    9.Do you think the trade a high probability one ?
    10.Do not look for patterns inside a narrow range.

    ST
    6.

    ReplyDelete
    Replies
    1. Hi ST,
      Could you please help me understand your point 2."No body will short the break of PDH. Shorts will be created on break of swing low".
      These are the type of entries I would probably get caught in, why are we waiting for a pivot below PDH and not shorting break of PDH directly?

      Delete
    2. S Roy
      Think about how other people trade. Traders might have gone long on the break of PDH
      Where are they going to keep their stop? at least few points below PDH.So while shorting there we will not be able to ride stop triggering. After a prolonged sideways move traders shifted their stops below the earlier swing low and triggering of the stops caused the momentum move down. Ensure stop accumulation before a direct BO trade

      ST

      Delete
    3. Hi ST,
      Thank you so much.

      Delete
  28. Amber
    Do not make such rules. Price may test a level 10 times and break it.If you feel it will break enter the trade and control risk

    ST

    ReplyDelete
  29. Hi Rajesh,

    Has any one of your reader are using sasonline.in for trading?

    Their pricing is Rs.9/- per trade.
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    Trading platform NSE NOW
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    I would like to know their services before I subscribe to them for trading for options.

    Wishing a good trading day !

    Thanks and Kind Regards,
    Siddartha

    ReplyDelete
  30. ST, Thanks for your explaination

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  31. hi ST,
    For the last short entry, was entry below the lowest low in the cigarette pattern or the swing low prior to the break down of price, or some other? Thanks for your help.

    ReplyDelete

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