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

Tuesday, June 10, 2014

10062014


Nifty opened above PDC and sold. Went short on BPB of PDL. TP at BRN. Entered long after the selling climax at BRN. Nifty tested the patience and finally went up. TP when it failed to go above PDL which was my target. Went long on the BO of PDL. TP at RN. Tried a short on BPB of PDL and stopped out. Price started making a Barbed Wire around PDL. Stayed out. Missed the  final BO up move of Range high as I hesitated due to PDC and RN above it. Good example of WoW pattern discussed a few days ago

19 comments:

  1. Hi ST
    Can we say that "WOW" will invariably have higher lows which can be used as SL levels provided we manage to get on the trend??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. TBP

      Just observing it.It is happening frequently now a days
      I have not tried to trade this

      ST

      Delete
    2. Hi ST
      Where and how can one initiate trade using 'WOW'??

      TBP

      Delete
    3. I think on the failure of retest/ second push.
      With SL below LOD. This is just an observation
      I have not studied the pattern well

      ST

      Delete
  2. PT, in yr chart PDL appears to be somewhere at 7630, whereas in icharts, it is showing as 7624.25 ?

    ReplyDelete
    Replies
    1. Sumesh

      Yes. It was a little lower. DPs are zones not exact lines
      After watching the price action I adjusted the level a little thinking it is the exact level
      Watch candles 2,3,6 then seven candles around 11.30.Further the BPB of PDL
      I got trapped in a short trade due to this adjustments.

      ST

      Delete
  3. Hi st,
    Where was ur sl when u entered bof brn ,at days low or below brn

    ReplyDelete
    Replies
    1. Below BRN. Three candles rejected BRN with lower tails.

      ST

      Delete
    2. Sir, I have seen you many times scratching trades when price gets rejected on Double tops, this time DT was at 7616, what was the consideration for holding with SL below BRN ?

      Delete
    3. I have noticed many times market reverses the entire fall after these kind of selling climax.
      Read my reply to URD here. I suspected this behaviour
      http://niftynirvana.blogspot.in/2014/06/05062014.html#comment-form
      Usually I enter these trades above the consolidation as Pressure Play

      ST

      Delete
  4. Hi ST,

    The gap above the day before yesterday's close was filled today. I have noted that, when I bought where you taken your second trade.

    http://nsemcxpriceaction.blogspot.in/

    ReplyDelete
    Replies
    1. Yes. You are right It was a bounce after gap closure
      Why you did not take the first trade into the gap fluid?

      ST

      Delete
    2. Hi ST,
      I was not in front of the screen at the opening. Missed it.

      Delete
  5. Hi ST,

    It seems like spike and channel pattern. Am i right?

    Regards
    Arunkumar

    ReplyDelete
    Replies
    1. In Spike and Channel, Channel will be formed in the direction of the spike

      ST

      Delete
  6. Hi ST,
    I was not comfortable taking the first trade and let it pass. I was a bit nervous looking at all those tails there. Could you please guide? For the second trade I went long only above 10 a.m. bar (basically above that congestion). Was the entry too late?

    ReplyDelete
    Replies
    1. S Roy
      You are trading the BOF of BRN and your stop is below BRN
      Your logical target is PDL.The more you delay your entry, less favorable your RR
      Enter when you feel BRN is going to hold. Trade the core concept. Acceptance and rejection.
      Price action will unfold differently and every occurrence is unique.

      ST

      Delete
    2. Hi ST,
      Thank you so much. Could you please guide me on how to understand the first trade. I was hesitating to enter because of the tails, because of rejection.

      Delete
    3. Usually such moves will have two legs.
      There was sufficient space for the trade to move as FTA was BRN
      Further this area was a fluid created by a gap up earlier

      ST

      Delete

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