There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Friday, September 7, 2012
07092012
Nifty gaped up above PDH. Bias was bullish.I was looking for an opportunity to go long. BPB of IR high gave a long signal. This trade failed to move. Scratched. Stayed away from CT trade.
Some observations: Did you notice at 1:00pm there was a perfect BOF at 5254 High of the Day also a double top. The previous BOF was a weak attempt. This reversal tested the IR high and failed. If you consider the gap up as a spike. Then Nifty had made a spike and channel trend for the whole day. All lower trend line channel touch was a long. The failed BOF was also a long. Nifty was displaying deep pullbacks which are a sign of lack of strong trend. Even though the long at the lower channel line was a high probability trade the reward to risk ratio is not favourable
ST - Wasnt there a PB trade around 1:30 when price tested the IR high? It is not a main DP but it is tempting as we are looking to get in on breakout strong trending day.
@Rameshji You are correct. It was channeling the whole day. @ Raghu Notice the BOF of IR High Rameshji mentioned. Going against a BOF move at a weak DP without a strong signal is a low probability trade.
Some observations:
ReplyDeleteDid you notice at 1:00pm there was a perfect BOF at 5254 High of the Day also a double top. The previous BOF was a weak attempt. This reversal tested the IR high and failed.
If you consider the gap up as a spike. Then Nifty had made a spike and channel trend for the whole day. All lower trend line channel touch was a long. The failed BOF was also a long. Nifty was displaying deep pullbacks which are a sign of lack of strong trend. Even though the long at the lower channel line was a high probability trade the reward to risk ratio is not favourable
ST - Wasnt there a PB trade around 1:30 when price tested the IR high? It is not a main DP but it is tempting as we are looking to get in on breakout strong trending day.
ReplyDeleteregards
rb
@Rameshji
ReplyDeleteYou are correct. It was channeling the whole day.
@ Raghu
Notice the BOF of IR High Rameshji mentioned. Going against a BOF move at a weak DP without a strong signal is a low probability trade.
ST