Nifty opened near PDH and did not attempt to break it. IR formed. Went short on FTC above IR High with stop above PDH. Breakout of IR Low failed to extend. Scratched the trade. Envelope formed around IR. Short on TST of IR high.. This moved well. Did not attempt any other trade as I expected a chop due to weekend and FDI problem.
Hi ST
ReplyDeleteOne problem, it seems I have not understood the concept of FTC and TST. I searched the blog for the same but could not find a writeup on them. I request you to throw more light on them.
Thanks
Kavi
ReplyDeleteThere is not much difference between a TST and FTC.Market testing an existing DP after a significant pull back and after a reasonable time is called a TST.If the market is testing a new DP immediately without a meaningful pull back is called a FTC.
Notice today's price action. First test of IR High is a FTC and second one a TST.If price broke and touched PDH in the morning, we can call it a TST of PDH. Hope it is clear.
ST
Dear ST,
ReplyDeleteI came to know about your blog in June via SS but didnot go through your blog completely. Yesterday I started reading your Glossary posts... They are simplyyy superb.. I cannot control stopping myself to read more and more of your posts.. I tried some intraday shorts today and couldn't define my stops properply but i am very happy to identify certain setups which i watched for years and didnot trade.. Today i traded and stopped out but still feel very happy and confident...
keep the good work....
Thanks
Gnana
Gnana Sekar
ReplyDeleteThanks for the visit and encouraging words.
I trade just three patterns at well defined price levels which I call decision Points.
Watch the live market and identify the trades for a few months till you trust the method and own the method. Then go live
ST
Hi ST
ReplyDeleteThanks a lot for clearing my doubts.