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

Thursday, December 11, 2014

11122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis

Nifty gaped down near PDL and sold. could not capture the down move. There was a FTC pattern at the bottom. Avoided it. Went long on TST of LOD. .It retraced the entire fluid. TP near PDL. Short on LOL BOF of PDL/HOD. TP at 8340.

32 comments:

  1. Hi ST

    Beautiful trades.ST, where would be the entry for the morning short which you could not capture?? A limit order??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. It is near impossible for this method
      Only BO traders might have entered

      ST

      Delete
  2. Hi ST,
    1. Why you missed short below PDL in the morning.
    2. My 3rd trade is valid? I was bearish so didn't think of going long at all.

    http://screencast.com/t/eGxUnls0JL

    ReplyDelete
    Replies
    1. Wait for a clear pivot low on such occasions
      It was not a very good BO pf PDL. So did not look for BPB
      regarding your TT. do not give back much on such trades.
      You pocket your 20 points and look for a fresh trade if happens as Nifty had already dropped a lot
      8320 was a good support. Look at daily

      ST

      Delete
    2. Hi ST,
      just looking at chart. Will you go for short below 12:48?

      Delete
    3. Hi ST, could you please tell what you meant by "such occasions" when you said Wait for a clear pivot low on such occasions

      Delete
    4. When price bouncing back after a selling climax

      ST

      Delete
  3. why profit not booked when price not able to cross RN -NSBRN

    ReplyDelete
    Replies
    1. Price tried a lot to go below 8320 a lot
      So I felt downward risk is very negligible. so raised the stop below first pull back low and kept it

      ST

      Delete
  4. Amazing simple Trading ST... Lot to learn from you..

    ReplyDelete
  5. Hi ST,

    Apart from small risk, why you entered at TST. Although i didn't trade today, but was watching the mkt at that moment. As the trend was down, so I was thinking to go short after a TRAP pattern at RH made earlier..

    Thanks,
    Deven Malhotra

    ReplyDelete
    Replies
    1. Deven

      8320 looked like a solid support. Check daily. If it breaks may kiss 8200
      Market had already fallen since last 3-4 days and today down around 100 points. I did not expect further fall
      If market create a big fluid in the morning session, it retraces it many times
      Look at 0412,0312,1311,1011,1310,1010

      ST

      Delete
  6. Roller coaster ride and you rode it on the way up and down as well. Amazing trades!

    ReplyDelete
    Replies
    1. Support and Resistance, incidentally is the first thing every trader learns
      This is the best thing and the only thing that an astute trader need to know.
      But people all over the world are competing to complicate it

      ST

      Delete
    2. lol .. people all over the world are competing to complicate it .. haha

      Delete
  7. 4 times it tried and came back below RN-NSBRN. Can you share your thought process why you did not consider exit.

    ReplyDelete
    Replies
    1. LVG

      Hope you might have read my reply to earlier comments
      RN and NS BRN are not considered as DP. But still there will be opposing order flow always. So we always need to expect some chop. The method is a combination of DP and ranges. Price made a clear range high at 8340 and got rejected . It made a swing low. I was ready to cover below this. Next push down failed to crack this swing low and moved up above the range and never came down. So I allowed it to chop there

      Further price moved 30 points 8320-50 without a deep pull back. We need to allow it and sit through it. Then raise your stop and ride the trend

      ST

      Delete
    2. Hi ST,
      On a normal day, would you not have moved SL to pink line in chart. Did the fact that congestion high (blue line) was closeby play any role in you not moving SL? http://imagizer.imageshack.com/img674/5843/PNekWz.png

      Delete
    3. Look in the rear view mirror
      It was not the congestion . It was one of the most efficient concept of the method
      If you still cant find it, let me know

      ST

      Delete
    4. I am not able to figure it out ST. What is it?

      Delete
    5. Did you notice the Fluid created by morning gap down and sell off?
      We are already in profit. Should we micro manage and spoil the opportunity?

      ST

      Delete
    6. Thanks :) Yes ST, the fluid I noticed, but thought RN+congestion BOF may be an exit signal. Will remember this while moving SL in these type of trades.

      Delete
  8. ST sir
    nice trade why you entered and judged to short long was good i also trade the same but to short in such recovery rally after 3-4
    days of downfall please explain the think process.

    ReplyDelete
    Replies
    1. Price got rejected from a DP. So shorted
      You see it as a recovery rally. Others think down trend is intact and up move is just a pullback
      Price action trading is trading what we see on chart. What market is doing

      ST

      Delete
  9. Sir,
    If u plz clarify a doubt for me.today i faced that on terminal..sir i sold TS at 526.40 and put my stoploss accordingly..afterthat i retrace my stoploss as needed..I expect a chop around 521.50 .So,i want to put a advance buy order at 521.50..when market price is around 524.I put SL-M order .But,terminal bought that share on that moment at 524.Sir,how can i put that order..I always put this type of order on buy side but never on sell side,as today i tried i got caught.If possible plz help.
    Thank u..

    Sentu.

    ReplyDelete
    Replies
    1. SL-M or SL-Limit orders are always kept above the current price
      To take profit, just keep a Limit buy order at 521.50. It will get executed at 521.50 or below
      You sold at 526.40. Keep a buy SL order SL-M or SL-L with trigger 528 to cut short your loss
      To take profit at 521.50 feed a Limit buy order at 521.50

      ST

      Delete
  10. sir,thank u....plain limit buy order will work in this case i never thought...thank u..

    ReplyDelete
  11. Thanks for the charts ST. My observations at -
    http://niftytradediary.wordpress.com/2014/12/11/11-dec-2014-confluence-of-support-at-8280-spot-will-it-hold/

    I must have been the only one stopped out so early on the long trade :)

    8380 was the swing low on 30min chart which acted as support on way up. Resisted today. Will it continue to resist .. we'll let market decide

    ReplyDelete

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