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

Tuesday, January 13, 2015

13012015


 This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped above PDH and sold. Move was very quick. Did not short after pull back into MSP. Lost another short at PDH waiting for a second test. Long on BOF of range low. Stopped out at PDH as I micro managed. Short when price fell back into the old range after TST of DO/HOD. Covered at 8290 as price refused to go below PDL. Long on BOF of BRN. Short covering at the fag end gave quick 20 points

19 comments:

  1. Hi ST

    Fantastic trades.
    You said Lost another short at PDH waiting for a second test. Where would have been the short initiated??
    And where was the entry for BOF BRN 8300??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. I expected a retest of PDH after the first pull back and kept limit sell order which did not trigger
      Anyway it will end as a scratch. Long was above the swing high at 8301

      ST

      Delete
    2. ST,

      Which swing high u considered to take long..? all action at that time was within 14.45 single bar. What made to to take counter trend trade without any confirmation or second test. against huge fall?


      Thanks and Regards

      Bharat

      Delete
  2. Excellent trades, ST
    Thanks
    Raju

    ReplyDelete
  3. Hi Rajesh,
    Excellent trades sir, why did you not take 8350 as any kind of range/DP in this chart. Apologies for my ignorance.
    Homer

    ReplyDelete
    Replies
    1. RN is not considered as DP. Once a DP or level gets enveloped in a range trade the range

      ST

      Delete
  4. Hi ST,
    Regarding your second trade :-
    The trend was UP
    We were in a range above [previous range .
    Why didnt you look for a BOF range low ,PDH ,MSP .
    Why did you take a short in to the below range without confirmation ?

    thanks
    Kishore

    ReplyDelete
    Replies
    1. There was a TST/FTC at DO/HOD. Price struggled for nearly an hour to move above 8380
      Price broke below PDH and entered a lower range. I shorted here as I felt price is getting rejected from the higher range
      Then pulled back and gave a BPB.Why didnt you short the BPB below 8360. There was 20 point space to FTA Market is never going to give more confirmation than this


      ST

      Delete
    2. Hi ST,
      I was having technical issues.So couldnt take BPB.
      I was keen to know why you didnt wait for a pull back.


      thanks
      Kishore

      Delete
    3. There are three ways to enter when price moves over to another range whether it is higher or lower
      1.BO . enter on direct break if you are confident that price is going to get accepted
      2.When pull back after BO retests the BO decision point. If you are confident it will hold
      3.Break of the BO extreme price level anticipating continuation

      ST

      Delete
  5. Wonderful trades, specially the last trade. Having the presence of mind and the willingness to take that long after just having booked a very profitable short trade. Excellent!!

    ReplyDelete
    Replies
    1. When a momentum move terminates at the fag end of the market, there will be some bounce due to covering

      ST

      Delete
  6. As there were two touches at 9:36 and 11:33, I opted for BPB of Range Low below those levels. Is it correct? I exited above 12:42 bar Hi. Where should I have exited.

    ReplyDelete
    Replies
    1. It was too technical a BPB.Let it break out well and pull back to the DP
      No problem with exit.Price was within a MC and price may test the MC high and break down. But we cannot risk that much

      ST

      Delete
  7. Sir good evening,sir i could not understand this .Break of the BO extreme price level anticipating continuation and kindly update the bar time thnx

    ReplyDelete

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