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

Friday, December 19, 2014

19122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped up above PDH. Did not attempt the break of IRH as it was below RN. The next big bull candle acted as a MC and became range of the day. There were RN and NS RN in between. Tried a short trade but it did not move well. Scratched.Adapting to the volatility is the main issue with Day trading

24 comments:

  1. Hi ST
    Price deciding which way to go I guess after gap up!!

    Thanks
    TBP

    ReplyDelete
    Replies
    1. I do not expect much decisive movement rest of the month
      FIIs will be in a holiday mood.

      ST

      Delete
    2. Thanks ST. Last year following weeks became dead boring. Ideal time to take break and get back..

      Delete
  2. Hi ST,
    Was there a BOF at rangelow/RN at 11:33, target HOD? Thankyou

    ReplyDelete
    Replies
    1. Yes.But it is difficult to take such a trade in live market
      Earlier RN gave support for a while and gave way.Then we do not know whether it is going to stop at IRH or LOD
      Range established after that up move.

      ST

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  3. Hi ST,
    http://tradingdecisionpoints.blogspot.in/2014/12/12192014.html

    Please comment

    thanks n rgds
    Kishore

    ReplyDelete
    Replies
    1. First trade was good. Nothing can be done . Market just refused to move
      On range days 9 out of 10 BO will fail. No problem in attempting them, but you should have a plan

      ST

      Delete
  4. Dear ST,

    Short below 12:54 bar with SL above it and target range low. Was this a valid trade?

    ReplyDelete
    Replies
    1. It is a valid trade.
      But you should sit tight with your initial stop loss
      In a range with two prominent levels in between there will be a lot of chop
      If you micromanage and try to trail you will get stopped out, In day trading losses can add up fast

      ST

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  5. There were 4 touches to RH. Even after that, You did not attempt BO at 12:54 which happened after two good green bars. What was your thought process at that that time.

    ReplyDelete
    Replies
    1. I rarely trade direct breaks. I usually look for a BOF at the range low rather than taking a direct break at the range high
      Otherwise I wait for a BPB. Here people were long from the open and prefer BO trapping these traders. In other words critical mass should get trapped in a BO. Here it is not happening.
      http://niftynirvana.blogspot.in/2013/10/breakout-blues.html


      ST

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  6. ST,

    What was the reason to avoid . BPB RN above 9.39 PH? was it due to deep pullback of 20 pts?

    Secondly .. why not took short below 10.33 third time market failed to go above days high . was it due to RN?which we mostly not consider to take trade.. where would we take FTC trade if moved fell suddenly from there?

    Thirdly wasnt there a pressure play long trade above days high at 12.54?

    In your short trade. why exiting above 14.24 bar.. there was no immediate rejection of the range low.. even we didnt broke below it and rejected.

    ST a humble request, if possible for you .. why cant we have a meet for dp traders who are regular in this blog..where we can discuss various issues faced by fellow traders.and have some mock sessions. so that the the fellow traders can trade the method confidently .i feel it will reduced your burden of giving averagely 25-30 questions per day. and you can spare that time to further refinement of method.

    Thanks a lot for endless support.

    Thanks and Regards

    Bharat


    ReplyDelete
    Replies
    1. RN is not considered as a DP and trades are not initiated there. RN is a recent introduction after xx50 strikes and is not powerful as BRN. A BPB should move fast after pull back. It took 45 minutes to test the high again. Ot shows lack of buying interest
      You can take a FTC trade there. But you must be prepared to deal with a bounce from IRL or from LOD. I did not find it attractive.The trade was also CT. Further I would like to see a type C move before attempting FTC
      http://niftynirvana.blogspot.in/2014/11/more-on-critical-mass_22.html
      Read the reply to LVG
      Price tested the initial range low and got rejected. Ideally the pull back should not go above the earlier swing low. Flip not holding means not enough selling and possibility of breaking the range low again is not very likely. Entry was delayed on the trade hence this issue
      I do not consider myself as an expert in this method. I am also a work in progress like every reader. The method is still evolving. I have set some performance milestones for myself. We will go for webinars and live discussions for sure later. I am unable to bear more psychological pressure and performance anxiety at this stage

      ST


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    2. Hello, there is lot of info already in 'Important posts', Daily trades and qna. Every other day there is something new, something i maybe missed or some known concept seen in new way or just reinforced. Your patience in answering questions is remarkable. Please continue at your own pace and avoid burnout. thank you very much.

      Delete
  7. How do you confirm breakout or breakout failure and which point you take entry . because most of the time when I take entry above dp or below dp then price reverses and got stopped out.

    ReplyDelete
    Replies
    1. All these cannot be explained in a comment reply
      The following post will give an idea.Do not trade the method till you have clear idea about the method
      Go through the important posts and comments on them
      http://niftynirvana.blogspot.in/2013/10/initial-stops.html

      ST

      Delete
  8. Hi ST,
    1. There was an obvious RH after it was touched the 2nd time (BOF). However, there were then at least another 2-3 FTC/BOF before you entered on a BOF. Were you simply waiting for price to move below 8260? Just trying to understand why you passed on the earlier ones but took the final one. Especially in view of previous discussons regarding the issue of confirmation vs location (i.e, TT).
    2. You mentioned yesterday DP method is just an adaptation of Darvas Boxes. If possible could you elaborate further on this ... either in comments or as separate post. As I think this may be helpful to your readers. Thanks.

    ReplyDelete
    Replies
    1. Price action did not favor a reversal
      1.It was an CT outside gap.
      http://niftynirvana.blogspot.in/2012/08/gaps.html
      2.Not favoured a FTC trade. It was not a type 3 move
      http://niftynirvana.blogspot.in/2014/11/more-on-critical-mass_22.html
      3.Price never cracked MSP for a reversal trade
      http://niftynirvana.blogspot.in/2012/12/major-swing-pivots.html
      4.Expected a chop with too many levels. RN,NSRN,Range Low,MSP and LOD within 25 points
      Finally I lost patience and tried one. Finally intuition plays a great role in entries and exits. It is all about the feel and read of the market. Hope you might have read the art of chicken sexing.
      http://niftynirvana.blogspot.in/2012/02/chicken-sexing.html
      It is not an adaptation as you think. It was just this page and I do not find anything else interesting about the method
      I could see this boxes all over the place and buying the low and selling the highs made money. Google it and you will find many articles on the mehod
      http://www.boxcharts.com/darvas-box-theory-explained-3.html

      ST

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    2. This article will also through some light
      http://traderhq.com/trading-strategies/darvas-box-trading-strategy-explained/

      ST

      Delete
  9. Sir good afternoon,sir on 18th you have mentioned High probability trades always appears at the structural extremes
    Non random directional moves originate from these points,sir i could not understand this,kindly update thnx

    ReplyDelete
    Replies
    1. Trade the range extremes. Never trade the middle of the range

      ST

      Delete

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