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

Tuesday, August 12, 2014

12082014



Nifty gaped up and traded in a 20 point range for a long time. Went long on BOF of range low. Exited the trade when price failed to stay above the range and broke the BO candle low. Price refused to come down and broke the range high again. Long on BPB of range high. Ignored BRN as waiting for its break will increase risk. TP near RN at the end of the fluid

40 comments:


  1. ST Sir,

    Missed up move as i was not sure about long signal. Waited for price action at BRN.. but NF zoomed .

    I took 1st candle high as IRH.. Oops, it caused me confusion.. i realized it now after seeing your RH

    Also can you tell me if my 1st trade valid?
    Trades here

    ReplyDelete
    Replies
    1. CT BO trade. Better to avoid.
      If a strong BOF happens at the other end you can try such trades

      ST

      Delete
    2. Yes, missing these small observations some times.. may be because of narrow range,, keen focus missing.
      Thanks for input.

      Delete
  2. Hi ST,

    Your 2nd trade is good, I hesitated to take that because of BRN 7700, what was your thought process while entering BPB?

    Regards
    Naveen

    ReplyDelete
    Replies
    1. Price was escaping out of a 5 hour tight range.
      Risk was favourable with entry at 93 and stop at 84
      It was a fluid above the area.On the way down earlier this BRN did not support
      Even otherwise i will try a long above 7717. Here also risk was favourable

      ST

      Delete
  3. Rajesh,
    Thanks for the post and the explanations !
    Thanks for teaching that price moves in ranges which is the core of trading !
    Thanks for helping to earn my living today and till I cease to exists !
    With Kind Regards

    ReplyDelete
    Replies
    1. Happy that you could make use of some concepts
      All the best

      ST

      Delete
  4. Hi,
    Why did not you took bof irh. I got confused with 1st bar(data of gfdl), so could not take bo of range. A bad day.
    http://screencast.com/t/nCuzO7qqSFuX

    ReplyDelete
    Replies
    1. There I exited my long. You messed up because of your opening bar which differ from mine
      But why did you skip the BPB above BRN. There was enough space and it was a fluid
      Risk with stop below the pull back low was very favourable

      ST

      Delete
  5. ST on first Trade
    What you would have looked for pressure play ? I saw it as BO trade , what was the miss (Strong BOF at the range high ?).

    ReplyDelete
    Replies
    1. In a range if a BOF happens at a range extreme, because of trapped traders order flow, the other end may break
      If there was a BOF of IRH, I would have tried a direct BO short on break of IRL.

      ST

      Delete
  6. Hi ST,
    Was IRL at A or B? http://imagizer.imageshack.com/img911/2861/egcoSn.png I took a BOF trade there because my IRL was at A. Somehow managed to join the last run, but a bit late above 14:36 pivot, perhaps too late and wasn't a wise decision, but managed to stay in the trade till eod.

    ReplyDelete
  7. Replies
    1. If I take a trade after 3 pm I go for NRML
      Otherwise MIS

      ST

      Delete
  8. http://i57.tinypic.com/iz6yq1.png what was missing??

    ReplyDelete
    Replies
    1. On the first one where you will enter? right location is 12.03 bar high
      Avoid CT breakout trades unless there is some assured order flow like trapped traders or critical mass exiting

      ST

      Delete
  9. Dear ST

    I am getting confusion whether the tail should be included for calculating the initial range? This is repeating. Because, it opened at 7700 which is BRN and failure to hold - I assumed the bias as negative and the narrow range made me to think on that line and I was not prepared for the last move at all because of this bias.

    Regards,

    Veer

    ReplyDelete
    Replies
    1. Data feeds and charting differs sometimes.
      We cant help. Trade what you see on the chart.
      Usually I avoid tails . But later make some adjustments after subsequent tests
      There will be always some confusion in case of tails
      http://niftynirvana.blogspot.in/2013/12/dynamic-levels.html

      ST

      Delete
  10. Where is space for such a trade. Hardly 9 points to the earlier swing high
    The BOF itself was not convincing. Less than 2 points overshoot.
    Let the scouting party survey a little deep before making a decision
    http://niftynirvana.blogspot.in/2012/05/scouting-party.html
    Funny. You are calling the second trade unwise. It was the real DP trade BPB of BRN and it went where it was supposed to go. End of the fluid, the next option strike RN 7750

    ST

    ReplyDelete
    Replies
    1. Thanks a lot ST for the scouting party link. I seem to be always failing to note/missing some point or the other. About the second trade, I thought it was wrong because it was 18 points above DP. I still took it because it was the first time some move was happening on the long side after 3 gap ups, so was expecting positional shorts covering, so risked it. Is it ok to take 18 points away from DP?

      Delete
    2. No problem in taking a trade 18 point away
      The question is Risk and Space. Here you keep stop below the swing low not behind DP as usual

      ST

      Delete
  11. Hi ST,

    I've entered short as BO of Range low at 12:50 Candle and price hit my SL. Pls tell me what was wrong in that trade?

    Thank you,

    Kiran.

    ReplyDelete
    Replies
    1. Avoid counter trend BO trades. Most of the time you are going to get trapped
      http://niftynirvana.blogspot.in/2013/10/breakout-blues.html

      ST

      Delete
  12. hi st sir
    im new to market but really thankfull to tour support.
    is this method also usefull in commodity(mcx) market?
    any blogs for same.....

    ReplyDelete
    Replies
    1. I have not tried in commodities
      Few people are trading it

      ST

      Delete
  13. Sir good evening,sir in your comment There was enough space and it was a fluid, kindly update which fluid is taken here thnx

    ReplyDelete
    Replies
    1. Fluid created by the 07082014 down fall

      ST

      Delete
    2. Sir good morning and thnx

      Delete
  14. Hi ST,

    Were there any reasons you did not take the two BOF - IRL that occurred earlier in the day? Yet took the third BOF - IRL.
    Thanks.

    ReplyDelete
    Replies
    1. The BOF itself was not convincing. Less than 2 points overshoot.
      A BOF should go deep and trap a lot of BO traders
      Let the scouting party survey a little deep before making a decision
      http://niftynirvana.blogspot.in/2012/05/scouting-party.html

      ST

      Delete
    2. Thanks ST. Are you specifically looking for a bar to close on the other side of the DP or does it not matter?

      Delete
    3. Bar closing is not that relevant.
      The question is whether price is getting accepted or rejected from the new area

      ST

      Delete
  15. Good morning sir,
    Can u pls send the links to learn about CT trade and criticalmass ?
    thanks & Regards
    radha

    ReplyDelete
    Replies
    1. Go through all the important posts listed below the blog
      You can also download them in PDF

      ST

      Delete
  16. Hi ST,
    Please can you tell where is the MSP for the last upmove? Thanks.

    ReplyDelete
    Replies
    1. There are no meaningful pull backs on the last up move
      So 7707 level can only be taken as MSP.No use with that
      Leave it and focus on new range being made on top IRL-PDH

      ST

      Delete

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