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

Tuesday, June 30, 2015

30062015


This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Nifty opened within previous day rage and moved up above PDH. Got rejected at RN. Then it was a BW around PDH. Attempted two longs and a short . Both the BOF trades at the bottom of the range worked well. A mid level short ended as a scratch

13 comments:

  1. Hi ST,
    1> how did you manage trade, Once it hit the FTA (PDH) ? ---> 1st Trade
    2> After 2nd trade, failure I considered it as BOF of PDH and expected push to higher range. What was your thought process ?

    ReplyDelete
    Replies
    1. Basically the method attempts to trade ranges.Try to buy the lows and sell the highs. Usually DPs act as range extremes . A barbed wire is a range formed around a DP. Trade BW as any other range if it is wide enough. avoid trades in the middle.Barbed wires are nothing but bracket formations. Here it was wide and tradeable
      http://niftynirvana.blogspot.in/2012/10/brackets-and-envelops.html

      ST

      Delete
  2. Thank you ST. I think my thought process was totally messed, I took only that short because I was waiting for proper BOF of BRN which never happened.

    ReplyDelete
    Replies
    1. You could have entered on break of MSP

      ST

      Delete
    2. Thank you ST. Somehow wasnt confident to take that trade because I was looking at the congestion previous day afternoon, but I guess I should have taken it because of the bof of IR.

      Delete
  3. I identified last long setup but my entry was late above 8330, what was the idea behind your entry above big bear candle ? was that the best place to enter long in hindsight ?

    ReplyDelete
    Replies
    1. I wanted the price to break the last swing low flip
      So entered above the BO bar. Trend change is confirmed on MSP crack.
      Your entry was right

      ST

      Delete
  4. Sir,

    i hv gone thru all the important posts... hv been using dp's and hv been successful also. Thanks to you

    However have confusion on bof and bpb. It would be great if you could explain more in detail about bof and bpb as these are too dificult to identify and judge.

    Examples of patterns that would help identify the right one would be really helpful.

    ReplyDelete
    Replies
    1. http://niftynirvana.blogspot.in/2012/04/my-trading-revolves-around-trader.html

      ST

      Delete
    2. Sir,
      Any samples with candle charts. I know i am bothering you but pl sir if you can help coz in candle charts i have seen examples where the bo candle is broken above but after minimal price move upwards it reverses down below dp making it bof.

      Delete
  5. Can you please explain the reason for your exit in first trade,please?

    ReplyDelete
    Replies
    1. 1.First candle was a MC and I felt it will hold.
      2.50 point rejection from RN earlier and not likely to break easily
      3.Price moved up nearly 50 points from bottom. A consolidation is likely
      4.No point in waiting and giving back a reasonable 25 point profit on a likely range day

      ST

      Delete

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