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

Thursday, July 9, 2015

09072015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
I was out of sync with the market. In hindsight analysis, most of the time price was within range low and DO.It was a 20 point range. I did not notice DO till the end. Attempted 5 trades. Nothing worked. All ended as stop out and scratches.

23 comments:

  1. Hi ST, One question: Which trades do you think where logical in hind sight. Out of 5 Trades ?

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    1. I wont say they were bad trades. Market was in chop and they failed
      Market was in a 20 point range but many candles were bigger than our 10 point SL
      It really scares

      ST

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  2. Thank you so much ST. If you had noticed DO earlier which trades would you have avoided?

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    1. 1.Will take.BOF rejection was very good. I think I managed it well
      2.This one was bad luck.
      3.I would have exited earlier on seeing the tail rejection or shorted next one earlier
      4.There was not much space. RN and PDL as barriers. It was with the trend
      5.Just took a chance. Expected some short covering as price refused to fall below RN/PDL

      ST

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    2. Thank you very much ST.

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    3. Hi ST, Good Morning. one more doubt. You have not marked PDC on your chart. At what point yesterday did PDC lose its significance? Thank you.

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    4. First price broke PDC and a BOF happened. After that PDC should hold as support. If not it becomes invalid
      Earlier swing low becomes the support

      ST

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  3. Hi ST, just before your 1st trade, wasn't it a BOF short with PDC as DP?

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    Replies
    1. Yes. But going against a 50 point vertical fall is suicidal.
      A bounce or pull back is quite natural and it reversed from the next barrier DO which was the FTA
      You have to consider the context also. Expect a second leg down and look for counter trend after its failure

      ST

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  4. Trap trade, i didnt take it real time as to me it could have easily broken low and then retraced as it had done previously, what factors convinced you to take the trade ?
    I think limit selling are good trades in such weak days near BRN esp around 11 to 12 pm, will be adding them to my setup list.

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    Replies
    1. Which has shown as TRAP is not a TRAP in real sense. You may call it a delayed BOF of DO
      Breaking down to an earlier range area.Or breakdown of a tight trading range. Plus points were the fluid below it and the trend
      You can always consider fading CT moves at prominent DPs like BRN, PDH and PDL also the retest of HOD and LOD
      ST

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  5. Hi Sir ST, here's a study on the 'open'. If you find it ok then do publish it.

    http://nidsetups.blogspot.in/2015/07/where-is-open.html


    Thanks and regards,

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    Replies
    1. Nice one.
      How can you use this in your trading? That is the real challenge. Work on it

      ST

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  6. Good site for the Nifty traders who follow the concept of YTC and NiftyNirvana

    http://nsemcxpriceaction.blogspot.in/2015/07/discretionary-nifty-trader.html

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  7. Hi ST,
    I am a ytc price action trader. Heard that you are trying limit orders these day. I have written an article about it http://www.discretionary-trading.com/how-i-play-with-limit-orders/
    Go through it when time permits. It might be helpful for you too..

    ReplyDelete
    Replies
    1. Thanks.
      Will go through your blog leisurely

      ST

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  8. Hi ST,
    Good afternoon. Would you please post how you managed the SL in today's long? Thanks for your help.

    ReplyDelete

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