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

Monday, May 5, 2014

05052014



Nifty opened near PDL and attempted to move down. BOF of PDL gave a long signal. Long on break of PDC. TP when price broke below RN. Then nifty came down unexpectedly and gave another long trade. BOF of  PDC/PDL. This trade did not move as expected. covered at a 10 point profit when second push to RN failed. Could not capture the rest of the up move. Short on BOF of  PDH on break of HOD. TP at 6735, NS BRN area.

28 comments:

  1. Dear ST,

    My entries today were exactly matching with you. But missed the first one.

    http://nsemcxpriceaction.blogspot.in/

    ReplyDelete
    Replies
    1. PA Trader

      Good trades.
      Unless you enter the order earlier, you wont be able to capture the first one

      ST

      Delete
  2. Hi ST

    Was the first BOF PDL long on break of PDC a limit order entry?

    Thanks
    TBP



    ReplyDelete
    Replies
    1. TBP

      Yes. It was a SL limit order.
      As far as I know a limit order always gets priority
      ST

      Delete
  3. I traded BOF of PDC & BOF of PDH... made 50+
    Thanks for this simple system sir.. i can see improvement.. though very early to say :)

    Anyways.. let me come back to Q's.

    I went long on BOF of PDC at 6725 with SL as low of day 6714.. low of Break down bar.
    I went short on BOF of PDH at 6770 with SL as high of day 6779.. high of break out bar.

    10 point SL in both cases.. but i am curious how you manage SL initially.. i mean just after entering trade.

    ReplyDelete
    Replies
    1. Rose Mary

      Stop depends on the situation. For example the BOF of HOD
      I did not short on the first break as I suspected a bounce from HOD. If I shorted there my stop will be above the extreme.Here I shorted the swing low at HOD. My hard stop was above the lower swing high.but I will scratch if price goes above the DP.We are trading acceptance and rejection of DPs. Everything else is just tactics.

      ST


      Delete
  4. Hi ST,
    Where was your SL when you took the first trade. Thanks.

    ReplyDelete
    Replies
    1. S Roy

      Initial stop was just below PDL. at 6719
      When it crossed RN I changed to 6748
      Look at the tail when price came back to PDC. It was just an overshoot.
      Orders were at PDC. Next 4 candles proved it. That is why I ignore tails

      ST

      Delete
  5. ST sir, pls, see my chart. sir, is it CPB ? pls, explain shortly about this setup.
    http://i.imgur.com/O1wI6EK.png

    ReplyDelete
  6. Pichu

    I have already answered it in the earlier post
    Check it

    ST

    ReplyDelete
  7. ST sir, basic question: should one watch the level of NS or levels of NF while trading NF?
    Since NF reacts based on NS with a premium / discount, shouldn't we watch NS for trading NF?
    I do see sometimes a 2-4 points of deviation in premium, but then it reverts back to average. Kindly suggest how should I approach.

    ReplyDelete
    Replies
    1. Unknown

      Trade NF levels and monitor NS option strikes to manage trades.
      We cant say NS leads always. Many times it happens the other way.It was discussed here long back
      http://niftynirvana.blogspot.in/2012/10/nifty-levels.html
      We can think about making use of the divergence between NS and NF

      ST

      Delete
  8. Hi ST,
    Regarding your trade 1 :-
    I did not take this trade because NS BRN was just above PDC at that time .
    So can we say likr this if We have sufficient trapped traders we can ignore NS levels ?

    My trades :-
    http://tinypic.com/view.php?pic=10db0ar&s=8#.U2esTXbTq6I

    +25 points today
    Trade 1 :- BOF RN
    Trade 2:- BOF
    Trade 3:- BO RN (due to BOF of the range low) ..Pic 9 in your post TP at PDH
    Trade 4 :- BOF PDH .But covered when the price bounced from MSP and crossed the flip .ST, How to scratch the trade at flips ..A close above the flip zone ?

    Please comment especially on the last trade

    rgds
    Kishore

    ReplyDelete
  9. Kishore

    A BOF, Two layers of protection PDL and PDC. 5 point risk if you keep SL a point below PDL
    Should we avoid this trade because of NS BRN?
    Trade1. Very low probability. Still NS BRN was there.against a momentum up move.
    Trade 2 Managed well
    Trade3 Nice one.
    Trade 4 Expect a bounce from MSP. Enter SL above the DP. Exit only when price move above flip and settles above it
    Manage the trade considering other factors. Here BOF of PDH. Critical mass is long and getting trapped.

    ST

    ReplyDelete
    Replies
    1. Yes ST,
      Critical mass was long.I got that .
      But was that a CT trade?.So was looking to scratch above flip.
      Or for us the trend is UP when the price moves above previous days range.

      rgds
      Kishore

      Delete
    2. Yes ST
      But Wasn't that a CT trade ?
      Or for us the trend is up when the price moves above previous days high

      regards
      Kishore

      Delete
    3. Kishore

      All BOF trades where critical mass get trapped are counter trend trades.
      You are micromanaging the trades. If you closely observe, price never broke the flip convincingly . You have drawn the line at the extreme of the tail. Real flip was a little higher. The bottom of next three bars. Price never broke the high of your entry bar also.
      Market is a place where tens of thousands of people execute countless strategies. Expect some overlap and overshoots. Manage the trades with this in mind. Trade the core concept . acceptance and rejection of price at DPs. Here price did not get accepted above PDH. Trade get invalidated only when price moves above PDH.We are using some thumb rules to avoid full stop outs. that is all. Here I never felt the price to go back above PDH

      ST

      Delete
  10. Sir good evening ,sir kindly update on this Yes. It was a SL limit order.? thnx

    ReplyDelete
    Replies
    1. Amber

      My entry was with a SL limit order. These orders are made in advance.
      For example a SL order with a trigger of 6601 with a limit of 6602
      Once price reaches 6601 this will trigger. But execution only within 6602

      ST

      Delete
  11. Smart Sir, You are doing a great job. Not many people help others this much for years, now don't say you are doing it to make a journal and help yourself. Again, Hats off, my Head off, my Brain off!

    Manju

    ReplyDelete
    Replies
    1. Manjunath

      Who told it is free?
      I think you are from Gangavathi, the rice bowl of Karnataka
      When I visit Hampi,I will let you know
      You have to be my host

      ST

      Delete
    2. Sure boss. Btw, how come u know that i am from here. Anyways, even if you r in B'lore anytime, let me know. And u r from chennai, right?

      Thanks
      Manju

      Delete
    3. Manjunath

      No. Iam from Thrissur, Kerala
      http://www.fest300.com/festivals/thrissur-pooram-elephant-festival

      ST

      Delete
  12. Hi ST,
    How to avoid keeping SL below 10:48 a.m.

    ReplyDelete
    Replies
    1. Read the new post
      Trend Traps. same reason

      ST

      Delete

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