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

Friday, June 20, 2014

20062014


Nifty opened within previous day range.IR formed. Did not go long on break of IRH as it was aroung NS RN. Price fell and tested IRL. Went long above the then HOD. Scratched it. went short below PDC on the way down. Price failed to cross IRL.TP at IRL. Tried another short on BPB of PDL. Thought it may break NS BRN. Stopped out above PDL

25 comments:

  1. ST Sir,

    Another range bound day, managed to close with no damage.

    TRADE1:
    Long at 7560, above IRH,DO,PDC..with initial SL 7548
    SL hit; exited trade with loss of 14 points

    TRADE2:
    Short at 7553, after BOF of HOD,PDC.. with initial SL 7560
    Moved SL to 7551, breakeven
    Trail SL hit; exited trade at cost

    TRADE3:
    Short at 7535, below IRL, LOD with initial SL 7547
    Moved SL to 7533, breakeven.. PDL is protected
    Trail SL hit’ exited trade at cost

    TRADE4:
    Short at 7545, after BOF of RN, FTC above PDC.. with initial SL 7556
    Moved SL to 7551, once morning low broken again
    Moved SL to 7530, after red candle below PDL
    Trail SL hit; exited trade with gain of 13 points

    Points earned: -1

    ReplyDelete
    Replies
    1. Rose Mary

      Start a blog and document your trades. Then post the link
      Then It is easier for all to track your trades.

      ST

      Delete
  2. Hi ST

    If BOF PDC had to be taken ignoring RN for IRL as target, where would be the entry??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. If you are referring to the morning BOF of PDC, It is difficult to get a good entry
      It was in a channel like move

      ST

      Delete
  3. very boring day indeed. Tried two long; one on the BO of IRL; trade did not move and scratched; second on retest of PDC @ 12.32 PM; scratched again. No damage done today. Did not try short entries as there are too many levels down IRL, PDL, etc., very strong Nifty spot support. Very range bound today.

    ReplyDelete
  4. Hi ST,
    Not taken any trades today ..

    thanks
    Kishore

    ReplyDelete
  5. Sir good evening,sir at TST you had shorted at that point what shud be observed while shorting ,kindly update thnx

    ReplyDelete
  6. Rajesh,

    First understand the trend of the previous days and then decide.

    My understanding of market structure is sell on strength and buy on weakness:
    - Support means there are no sellers
    - Resistance means there are no buyers
    - Repeated failure to break or pullback at support means there is possibility of bullish phase
    - Repeated failure to break or pullback at resistance means there is possibility of bearish phase

    Based on these assumptions I am doing the following on paper trading in the morning session :
    - Take long position around IRL after the price has gone from IRL to IRH and came back to IRL
    - Take short position around IRH after the price has gone from IRH to IRL and came back to IRH

    During the day
    In case the price does not break the support on second attempt I go short
    In case the price does not break the resistance on second attempt I go long


    Please give me your feedback.
    With kind regards,

    ReplyDelete
  7. We are doing the same thing.
    We identify ranges and buy low sell high
    If price is trading in a range higher than the earlier one we prefer buying lows to stay with the trend

    http://niftynirvana.blogspot.in/2012/05/buy-low-sell-high.html

    We prefer BOF of extremes to TST of extremes, that is all
    Once price tests a barrier multiple times we trade the breakout of the level

    http://niftynirvana.blogspot.in/2013/05/pressure-plays.html

    ST

    ReplyDelete
  8. Rajesh,
    Understand the market whether it has been trading / trending in the last few days.
    The market in extremely simple terms:
    - Support no sellers
    - Resistance no buyers
    - Trending either buyers or sellers in control
    - Trading neither buyers or sellers are in control
    - Buyer turns Sellers / Sellers turns Buyers depending on the market conditions
    - When repeated attempts fail to break support zone, there is possibility of bull phase
    - When repeated attempts fail to break resistance zone there is possibility of bear phase
    Based on the above, I take following positions in opening session after view the risk: reward ratio:
    - Go long around IRL when prices moves from IRL to IRH and back to IRL and moving towards IRH
    - Go short around IRH when prices moves from IRH to IRL and back to IRH and moving towards IRL
    Similarly during the day
    - Go long around support zone when repeated attempt to break a support zone fails
    - Go short around resistance zone when repeated attempts to break a resistance zone fails
    Exit short when an attempt to break support zone fails
    Exit long when an attempt to break resistance zone fails
    Please give your feedback and let me what type of order you execute for entry and exit and where you would the stop loss.
    With kind regards,

    ReplyDelete
    Replies
    1. T4L
      Our trend definition is little different
      We define it as successive higher/lower ranges
      All Support and resistance are not equally effective
      So we stick to range extremes and levels called decision points
      Most of the time SL limit orders are used for entry and for trailing
      Sometimes market exits are also used
      Kindly go through all the important posts listed below the blog
      ST

      Delete
    2. Rajesh,

      Thanks for your feedback and have gone through all your post at least twice.

      Yesterday trades
      - long 7545 at 10:51, exit 7570 at 11:57 (second failure to break HOD)
      - long 7560 at 12:36, exit 7570 at 12:54 (third failure to break HOD)
      - short 7570 at 13:51, exit 7540 at 14:15 (fourth failure to break HOD)
      -short 7545 at 14:42, exit 7525 at 15:09

      Take position only if there is possibility of movement of ten point for risk reward ratio of 1:1 or 1:2
      and there is possibility of order flow after I execute the trade

      All days are not like yesterdays !

      Please give your feedback.
      With kind regards

      Delete
    3. You have traded extremely well
      Well executed and well managed trades at the range extremes.
      Capturing 85 points on a 30 point range day is just fantastic
      I am sure you have the knack of trading ranges

      ST

      Delete
    4. Rajesh,

      Thanks for the feedback and everyday is not like yesterday, it just clicked. Overall I am still at a loss !
      So I am on the right track !
      To be honest with you I know understood the term trading ranges !

      You do not know the price of your priceless advice you give.
      You help and guide so many of us in their daily lives FREE OF COST !

      My GURU always say the most expensive things in this universe is always FREE !

      My wish is that you have excellent trading days !

      My wish is that you attain Nirvana in real life for everything else is transitory !

      With kind regards,

      Delete
    5. Rajesh,

      Correction

      My guru always say the most valuable things in this universe without which we cannot live are free !
      Sunshine
      Air
      Water
      With kind regards,

      Delete
  9. ST,

    I took BOF IRH yesterdays close below 10.09 Exited above 10.48
    2.Short below 12.06 BOF of days days high at that time.Exited above 12.39
    3.Short on 12.54 BOF of days high at that time Exited above 1.06
    4.Short below 10.57 exited above 2.15

    Any of those trades can be avoided?

    What should have been the thought process.

    Regards

    Bharat

    ReplyDelete
    Replies
    1. Bharath
      No problem in trades theoretically
      I feel you are not paying attention to space
      Trade less and take only quality setups with good order flow in our favor
      Ensure reasonable space for the trade to move.Why spend the mental energy on something mediocre ?

      ST

      Delete
  10. trade 4 leaving

    i checked 4 ur blog ... its missing
    can post ur chart with entry and exit.... if not kindly send it to dhadiga@gmail.com
    thanks

    ReplyDelete
  11. Hi ST,
    would there be an entry below 12:27?

    ReplyDelete
    Replies
    1. I exited my long on 12.24 candle
      There was only 6 points to RN . So skipped

      ST

      Delete
  12. Hi ST, No DP in sight. Price is standing in the middle of nowhere and dancing, what do I do, what I do? stay away?

    ReplyDelete
    Replies
    1. Hope you have taken the BOF of BRN

      ST

      Delete
    2. Yes ST, I took that one, I was not sure if going directly below that signifcant bar was correct, so took it below 2:33 pm, may be it was too late? thanks.

      Delete
  13. Hi ST,
    What is the difference in thought process between taking a short at black arrow and the TST short you took around 2 pm in the same area http://imagizer.imageshack.com/img538/8645/2EAtIu.png

    ReplyDelete

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