There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Friday, August 17, 2012
17082012
Nifty opened near PDC and went up straight. Skipped BPB of BRN as PDH was close. When it broke PDH , it had run almost 40 points and I expected a range. Price made a Barbed wire around PDH. BOF of Range low gave a long signal which did not move Scratched the trade .BOF of HOD gave a short and it moved very well.BPB of range low was a good location to add.Anybody paid attention to WWAP.during the fall ?
Observe the Nifty Spot high was 5399 just 1 point short of 5400. Also failure of break out from a tight trading range (5406 to 5415) leads to a powerful move in the other direction. The pullback to 5406 was the best trade of the day.
Sir. if price discovery is first on NS then why dont we use NS 3min chart instead of NF chart?? Yr method has changed the why i look at charts..its very helpful..thx
That is correct. If you place the Nifty Spot and Nifty Future chart there was a Divergence. But this happens only at turning points or trend change. Nifty Spot was in a downward channel while Nifty Future was in a trading range. When Nifty Future touched 5415 the first time Nifty Spot was 5398 and when Nifty Future touched 5425 at that time Nifty Spot just moved 1 point above the days high at 5399.
The breakout in Nifty Future above 5415 was a bull trap.
But this happens once in a while so i agree there is no need to track Nifty Spot 3-min chart continuously. But if price action is puzzling then one can glance at the Nifty Spot Chart for clarity.
Observe the Nifty Spot high was 5399 just 1 point short of 5400. Also failure of break out from a tight trading range (5406 to 5415) leads to a powerful move in the other direction. The pullback to 5406 was the best trade of the day.
ReplyDeleteRamesh
ReplyDeleteBRN On Nifty Spot is very important. I have written about it in an earlier post
Read it here
ST
Sir. if price discovery is first on NS then why dont we use NS 3min chart instead of NF chart??
ReplyDeleteYr method has changed the why i look at charts..its very helpful..thx
Bizagra
ReplyDeleteIt is Ok if you are a position trader.In 3M charts discount and premium fluctuations and time lag will wipe you out
ST
That is correct. If you place the Nifty Spot and Nifty Future chart there was a Divergence. But this happens only at turning points or trend change. Nifty Spot was in a downward channel while Nifty Future was in a trading range. When Nifty Future touched 5415 the first time Nifty Spot was 5398 and when Nifty Future touched 5425 at that time Nifty Spot just moved 1 point above the days high at 5399.
ReplyDeleteThe breakout in Nifty Future above 5415 was a bull trap.
But this happens once in a while so i agree there is no need to track Nifty Spot 3-min chart continuously. But if price action is puzzling then one can glance at the Nifty Spot Chart for clarity.
Sir, yr method is helping me very much in my positional. Now i trades my positional intraday with this method..:))Thx
ReplyDeleteWish u been giving live calls n guidance ...
ReplyDelete