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

Friday, May 30, 2014

30052014


Traded the continuous chart. Nifty opened within previous day range. IR formed. Did not attempt the BO trade of IRH .Missed the BOF of IRH as it moved very fast.First trade was a short of HOD on BOF. TP when price failed to go below RN. BOF of LOD/RN gave a long signal. Stopped out below the entry bar. Did not take any other trades as I suspected a channel. Ignored NS levels as there was too much fluctuation in premium.

42 comments:

  1. Hi ST
    The morning fall was lethal. Could not capture it.
    Was there any reason in not taking LOL BOF ( BOF of then LOD/RN) above IRL??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. TBP
      I was not confident to trade against that kind of a fall
      Further NF premium was too low for the opening day. So I was bearish
      Last CT BOF also failed
      ST

      Delete
  2. ST Sir,

    Flat day today... just like nifty… ended day with 3 point loss... missed to short on BOF of PDC.. Which is good trade of the day!

    TRADE1:

    Long on BO of IRH (7280) also PDC, with initial SL below PDL (7254)
    Scratched the trade when NF failed to go up and came into IR again
    Exited trade at 7278, with loss of 5 points

    TRADE2:

    Long above PDL (7255) after BOF of BRN (7250) with initial SL 7248
    Moved SL to 7271 when NF moves above PDC
    Trial SL hit at 7271; exited trade with gain of 13 points

    TRADE3:

    Long at 7262 after BOF of PDL & TST of BRN (7250) with initial SL 7247
    Moved SL to 7253, low of PDL BO candle
    SL hit; exited trade with 11 point loss

    Points earned: -3

    ReplyDelete
    Replies
    1. rose mary,
      yesterday I hv forgot to back fill jun series data, so I am unable to understand ur trades, bcoz ur DPs are different. pls, upload ur chart and mark all ur trades on chart. it will help me to learn something.

      Delete
  3. Rose Mary
    Your first trade was too dangerous.You were trading into a very strong flip zone
    Do not keep 26 point SL. Average swings in NF on 3M chart is around 20 points
    Never risk more than 10 points while day trading
    ST

    ReplyDelete
    Replies
    1. Sir,
      Zone above IR acted as a strong support on 29/05/14, before getting broken towards the end of the day. Is that the reason, you refer to this zone as a strong flip zone?
      Thanks,
      S.Karthikeyan

      Delete
    2. Yes. 7280-7300 zone acted as strong support and I expected it to resist
      The area supported on 26,27,28 and 29. Finally broke on 29th

      ST

      Delete
    3. Sir,
      Thanks for your guidance.
      S.Karthikeyan

      Delete
  4. Hi ST

    Nice trades. Why you avoided BOF of LOL IRL RN in the morning? Today I first time took SS trade. Please have a look and comment.

    http://www.charttechnicals.blogspot.in/

    Also please have a look at the link "Performance Review" at the bottom of blog page. This month for the first time I have seriously and more consistently traded. All I have achieved today is only because of you. You guided me, you led me through the darkness and taught me the real trading. You had been there with me whenever I needed you.

    ST, I thank you from the bottom of my heart. Please always comment, criticize. I would always need your helping hand.

    Thanks.
    UR Dave

    ReplyDelete
    Replies
    1. I thought about going long as it was a fluid. But hesitated to trade against bias
      You have done well.Even if you eliminate that 171 point trade, you have made 250 points in 11 days
      That is a good performance

      ST

      Delete
    2. Hi Dave,

      Good trades, SS trade was really nice, where would be your initial SL if SS trade went wrong.

      Regards
      Naveen

      Delete
    3. Hi Naveen

      Thanks. As price was staying around PDL/RN and making lower swing highs, like PP, gave me confidence to take that SS trade. Initial SL was behind PDL, 7 points away from my entry.

      Thanks.

      Delete
    4. URD

      Be careful with SS trades
      If market jumps your entry order and second one gets executed, you will land up in trouble
      Alternatively you can exit clicking square off button

      ST

      Delete
    5. Thanks ST.

      We have to be very quick and that is the only drawback with SS, I feel. I had put SL limit order below RN for entry and once it got executed I had to put two SL orders. One for initial SL and one for target. Once target was achieved, I canceled initial SL order immediately.

      Delete
  5. Hi ST,

    I traded Jun month chart so PDL & PDC are different compared to yours, I missed BOF of HOD.
    Is it good option to trade continuous chart rather than current month's charts (especially expiry next day).
    Please comment on my trades. http://screencast.com/t/K4WkOtut6

    Regards
    Naveen

    ReplyDelete
    Replies
    1. Naveen

      You have done well.
      Dont worry about charts. Stick with something
      It will not make any major difference. Everything will even out in the long run

      ST

      Delete
  6. Hello ST

    When there is PDC and PDL nearby - is it better to wait for price to touch the PDL and then take BOF if any. Can we expect that the price will touch the lower one before giving BOF ? What is your experience. Pls suggest.

    Regards,

    Veer

    ReplyDelete
    Replies
    1. There is no guarantee that price will touch the second level.
      If it does, the BOF will be a powerful one. Many times it happens

      ST

      Delete
  7. thanks for the chart ST,


    rgds
    Kishore

    ReplyDelete
  8. @RoseMary

    PDL is around 7230. Could you pls explain how you interpreted it as 7255? Do you offset the difference in premium after the contract expiry ?

    Manoj

    ReplyDelete
  9. ST sir, agree with you.. When i realized that i am risking big in 1st trade..i changed SL to cost.. Trade shud hav been avoided

    Putchu_2500,
    Yesterday i traded may chart only..today i traded june..i mean i took yesterday open close of jun future fr today trading... Check below link fr my tradrs on chart

    http://m.imgur.com/ucWDxJH

    Manoj,
    I considered yesterday open close low on june future

    UR Dave,
    Nice shorts u did today.. I was lookinh fr long opportunities.. Missed these trades..

    ReplyDelete
  10. hi ST im new to market
    which broker you trading with?and what is brokerage in points per trade or lot? how much exposure your getting?

    ReplyDelete
    Replies
    1. Go for some discount brokers
      Zerodha /Trade Smart Online etc. A round trip will cost you around Rs100/- on Nifty futures one lot

      ST

      Delete
  11. ST Sir, can u pl. tell

    1.) In your first trade (BOF of HOD) u covered @ around 7255 "TP when price failed to go below RN" (7250).... But immd. after short price halted @ 7270. Don't u think there was lack of momentum and should have exited ..?

    2.) U said "Did not take any other trades as I suspected a channel"... First time , I'm seeing u r considering pattern in trading as against sheer levels.. Any particular reason or situation where where we should use patterns ..

    Thanks and God bless u for your selfless mission.
    Sumesh

    ReplyDelete
    Replies
    1. Sumesh

      1.Wide range bars will create a small fluid and expect a deep pull back
      Here the entry bar was a WRB and I gave a little room
      2.You have not gone through all the important posts listed below the blog,it seems.I was using the concept for so many months
      http://niftynirvana.blogspot.in/2012/08/price-channels.html

      ST


      http://niftynirvana.blogspot.in/2012/08/price-channels.html

      Delete
    2. HI, please clarify
      WRB or master candle or a recent significant bars looks different for different time frames(i think), then how can we trade them?

      Delete
    3. Every candle is a range in a lower time frame. What are PDH,PDL,PDC?
      They are the high,low and close of the previous candle in day time frame. Here we are looking for a minor range breakout.
      The last significant bar in 3M will not be visible at all in 10M or higher charts. It may or may not be visible on 5M.We cannot expect higher time frame traders to act here. But for 3M and below it will be visible and they may act.This is also applicable to swing pivots in 3M charts. 15M chart trader will not see it at all.

      We trade acceptance and rejection of DPs which are time frame, indicator independent levels which all the traders can see and act.MC,WRB,LSB etc are additional inputs to avoid late or early entries and exits.These are all used as thumb rules.In other words fine tuning of the tactics

      ST

      Delete
    4. Sir,
      What is LSB?
      S.Karthikeyan

      Delete
    5. Last Significant Bar
      Many people consider the retrace of LSB as trend reversal

      ST

      Delete
    6. Sir,

      Thanks for your guidance.

      S.Karthikeyan

      Delete
  12. Hi ST,
    I couldnt find the link where you wrote about the recent significant bar. Please can you help?

    ReplyDelete
    Replies
    1. I have not written a separate post on this. It was somewhere in comment replies.
      Read the reply to Sumesh. Such wide range bars are significant bars ,the break of which can trigger a reversal

      ST

      Delete
    2. Thanks ST. for the BOF trade below the LSB at HOD where would you keep SL? Where would you scratch if price returned back into the LSB? Where was MSP for the up move? Would you consider 10.06 bar low as MSP? Thanks for your help.

      Delete
    3. S Roy
      Trade was a BOF of HOD. So logical SL is above that level.
      If price pull back and continue down shift SL to new swing high.
      MSP is 7222 area. Price struggled to cross 7220 for while and pulled back to the flip before going up and breaking HOD.Pull back was within 10.30 MC. The area gave support on the way down for a while.
      All these LSB, MC etc are just thumb rules. Trade the core concept. For example I went short below the BO bar low which was also a MC. In fact the third bar after BO bar confirmed the rejection. one can simply short there with minimum risk

      ST

      Delete
    4. Hi ST,
      I am sorry, I think I didn't ask the question clearly. Please check this chart http://i.imgur.com/beuSsa0.png Will A or B be the MSP. After we keep SL at C, if price starts reversing along black arrow at what point will we scratch? Thanks for the help.

      Delete
    5. Here point B is the MSP. Price hit 7270 and struggled to close above the level for 8 bars. That is nearly half an hour. Finally broke the level and pulled back to B. The pull back was within the BO MC. So you will not see a clear swing pivot
      After the BOF of HOD price hit MSP and bounced. Here you have to expect a deep pull back as the WRB entry candle created a mini fluid.Here it is always safer to keep your SL above the fluid, that is the entry bar high

      Delete
    6. Hi ST,
      Thank you so much. Sorry about the many questions.

      Delete
  13. Channels can occur anywhere.These channels are soft trends and not harmful to a trend trader.
    But it will not mix well with DP method. For example look at the above chart.
    At 14.30 we did not know it was a channel, 14.24 and 14.27 candles broke below RN and LOD
    Price pulled back and went above the flip zone 7250. It is a long as BOF of RN/LOD as per the method and we get trapped when price reversed.
    For a trend trader it is a cool ride with trailing stops behind successive lower lows.But we will know it only after getting a hit.So whenever your DP trade fails, look for channels and Barbed wires. Hope I could convey the idea properly

    ST

    ReplyDelete
  14. Yes very clearly sir. Thanks..
    This type of losses are unavaoidable, but SL and practice of scratching trades will keep us in race... I distinctly remember u advised one day that If we restrict big losses then combination of (small loss + small gain + Big gain) will make us winner in long run ...

    ReplyDelete
  15. HI
    how to deal with day before yesterdays high and low? as a DP ,or just except PB(or CPB), or use to manage trade.
    please clarify. and
    which chart to use to have bigger picture, daily chart or intraday continuous chart with higher time frame?

    ReplyDelete
    Replies
    1. Zoom out 3M chart. If the level looks prominent as a major turning point pay attention
      Otherwise ignore.

      ST

      Delete

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