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

Friday, May 2, 2014

02052014


Nifty opened above PDC. and chopped around the whole day. Attempted a short trade into the fluid. BOF of PDC/Ns BRN Stopped out above PDC. No other trades.

26 comments:

  1. ST Sir,

    I also attempted one trade only today.. but i went long after BOF of PDC (also BRN 6700 NS) with SL as low of breakout candle. exited at cost later.

    But i see you used pull back to short, what is the reason made you to short pull back.. rather than buy after BOF?
    Hope you got my confusion.. pls clarify..

    ReplyDelete
    Replies
    1. Rose Mary

      One of the main reason people lose money in the market, IMHO is they do not ensure enough space for their trade to move. Traders enter mechanically on patterns and ignore other factors.We need to ensure sufficient order flow in our favor before trading into a barrier.Think about the long on BOF of PDC. For the trade to make profit it need to crack IRL/RN, swing high above it and HOD/IRH. Can we expect sufficient order flow. I doubt.
      Look at the short trade. There is lot of space. Next logical barrier is BRN 6700. A high probability situation. It may or may not work, that is a different thing.Here it did not work.Cant help.
      Why not direct breakout trade? As far as possible I don't want to provide liquidity to the whales and sharks. So I wait for a BPB
      http://niftynirvana.blogspot.in/2012/12/liquidity-pools.html

      ST

      Delete
  2. Hi ST
    Why didnt you attempt to short below NSBRN when there were oppurtuniyies before your trade and there was fluid below

    rgds
    kishore

    ReplyDelete
    Replies
    1. Kishore

      Right .There was fluid below the area
      Price went up on the open and traded above PDC. When it broke the DO/IRL all the stops below it could not take price below PDC and I suspected orders below PDC and waited for a BPB and entered when it happened later.There was no patterns such as the BOF of other end or a TRAP to provide order flow

      ST

      Delete
  3. Hi ST,

    Similar query as above comments + one addition-
    IRL was chopped off & was took as a barbered wire. Wasn't a beautiful hammer at PDC/ NS BRN a reliable signal to go long?
    Even a weak Pullback also followed it..

    Thanks,
    Deven Malhotra

    ReplyDelete
    Replies
    1. Deven.
      Yes. The twin pin bars gave a nice signal.
      Actually I was thinking to go long above the pin bar. Then decided to enter on break of RN/IRL.
      There was no momentum. Even after 20 minutes price was not able to move 7 points. So I cancelled the order.
      What I do may not be the right thing always. Even if you entered above the pin bar you could have exited on BOF of RN with a small profit
      ST

      Delete
  4. Hi ST,

    Are you giving equal weight to NF BRN and NS BRN?

    ReplyDelete
    Replies
    1. PA Trader

      NS levels are approximations.
      I am using it for trade management only
      Signals on NF futures are important

      ST

      Delete
  5. Thanks for the reply sir... i understood now.. you took short as R:R favours.. nice.
    Also do i need to consider any thing like.. type of candle formed at BO point... hammer etc..

    ReplyDelete
    Replies
    1. Rose Mary
      The question is whether price is getting accepted or rejected from an area
      For that we need to know the boundaries. Must define a structure or framework that work reasonably well.

      Candles patterns are illusions and will differ as per the time frame you use and the settings of your charting program
      http://niftynirvana.blogspot.in/2012/05/candles.html
      http://niftynirvana.blogspot.in/2012/02/data-packets.html
      Even single candles are illusions. you have to watch the candle formation live and understand the inner working
      https://www.youtube.com/watch?v=enPN5pIeGMo

      ST

      Delete
    2. 1. Can we use candles as confluence after understanding them or watching them live.

      2. You missed a comment on 30th

      Delete
    3. Manjunath

      I have combined some bullish reversals.
      Everything shows rejection from a lower level
      A hammer will be rapid one whereas some others slower.
      A tweezer bottom on 5M will be a hammer on 10M
      I dont search for hammers and hanging men on my charts. I watch price rejection and its quality.
      http://screencast.com/t/8CFrEyYpbhSn

      ST

      Delete
    4. Hi ST,
      I have an amibroker afl that plots higher tf candles on same chart, can be used for understanding how addition works..the chart looks like this. http://images.devs-on.net/Image/rrya5VFfpIIW1cJj-Region.png I dont want to post the afl and pollute the purity of price action on this site though.

      Delete
    5. S Roy

      Thanks
      http://jamesclear.com/repetitions

      ST

      Delete
    6. Thanks a lot ST. Very nice article. A lot of gems in your posts.

      Delete
  6. Hi ST,

    At last I decided to make a trading journal and record my trades in a proper manner. For this purpose I have used my old blog http://charttechnicals.blogspot.in. Here I will try to keep a log of the same. I have used your daily charts there for the comparison with the trades so that whenever I review it later I have an idea about your trades on that particular day. Now I realize that I need to have your permission for their usage as I have used them without your permission. Please let me know if I need to remove them. Please have a look and also please give your valuable suggestion for improvement of the journal.

    I thank you for your guidance.

    ReplyDelete
    Replies
    1. URD

      All the best
      I will go through it

      ST

      Delete
  7. Hello ST,

    I have made an assessment on my trades that many a times I end up taking wrong trades. Wrong trades are the ones where I not only lose money but decision to take those trades was also wrong. Things which need to be considered before taking the trade were simply not considered, like space, order flow, location etc. May be because of lack of focus or ignorance of the facts. So started thinking like what if I concentrate only on high probability trades. For example trades taken on confluence of DP and Range, like in this picture where bold red line is marked for that confluence.
    http://i59.tinypic.com/2vwzlnn.jpg
    So idea is to wait for that confluence, once that happens assess the situation using the space, strength of DP, order flow, critical mass, location. R:R ratio etc. and then pull the trigger. This way I feel I would be able to better focus and keep the emotions under control.

    What do you say...

    Thanks









    ReplyDelete
    Replies
    1. URD
      http://niftynirvana.blogspot.in/2012/05/trading-ranges.html
      Read para 4
      ST

      Delete
    2. ST
      Thanks. That is what I have learned from you and trying to successfully implement it.
      I know I need to do that only but problem is not doing it because of other influences during the day.

      Delete
  8. ST sir, pls, see my today's NF chart. Is it complex pull back ?
    http://i.imgur.com/Ztz2tEh.png

    ReplyDelete
  9. Puchu

    Yes. it is
    One more is above it at RN

    ST

    ReplyDelete
  10. Hello ST ...

    May i know the parameters you use to draw IR ?

    ReplyDelete
    Replies
    1. OT

      http://niftynirvana.blogspot.in/2012/07/initial-range.html
      Please go through all the important posts listed at the bottom of the blog

      ST

      Delete
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    ReplyDelete

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