Nifty opened within previous day evening range. I failed to notice this and missed the BOF trade at E. Missed the BOF of PDL at A also.Price spent too much time under PDL. Price action after the BOF was not comfortable to initiate a trade. BOF of HOD was a signal to short which moved well after giving some chop in the middle of the range.
Do not try to trade point B as a BOF of PDL. because PDL lost its relevence after breaking from both sides.It is just a normal pullback in the trend.Never go long at point C as TST of LOD. After an accelerated move always wait for a second test as happened at point D
sir how to identify that we not have to trade on b and c as
ReplyDeletein live trading we will definately purchase at c thinking that it turns from lod and for b we think first sell and than think it's failure so again trade .
any suggestion in this condition plz
also sir at point a if price stays like this under pdl is u suggest to trade after that or we have to ignore this setup
ReplyDeleteHi.. In yesterdays post you have mentioned that we need to ensure certain minimum number of positions had been created before attempting to trade a reversal.. How we do this by tracking Volume/ OI? Thanks
ReplyDeleteSandeep Jain
ReplyDeleteBoth B and C are Counter trend.
PDL had been broken from both sides already.Now PDL is not a fresh level and a Counter trend trade is a low probability trade.
LOD is a fresh level. I would have gone long if it was a BOF. In case of TST after a momentum move better wait for a retest.
Price remained nearly 45 minutes under PDL as if accepted . There was not an immediate rejection.I play safe
@ Kranti
I do not track OI or volume. Once Nifty moves say 20-25 points SLOWLY in one direction you can safely assume a large group of traders are positioned in that direction.
If that move happens in a minute this may not happen.
ST