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

Thursday, March 28, 2013

28032013

Usually i do not trade on expiry days. On such days Market is not in control of day traders and DPs will not work efficiently. Nifty opened within previous day range . later it broke PDL. There was no opportunity to short. Later price break above PDL. But  PDC and then HOD was resisting. BOF of PDL gave a long. Most probably those who entered here might have shaken out  missing the move
@adhi
An up trend is higher pivot highs and higher pivot lows. But crack of any  pivot low is not considered as trend change. Most traders consider the crack of a swing low leading to the highest high as trend change. Here the market in uptrend. A-B impulse move. B-C pull back. C-D impulse wave fail to exceed swing pivot B. Market falls Crack of pivot C is not counted as a trend change. Crack of A is a trend change as it is the swing low leading to the highest high pivot B. Pivot A is a MSP. Hope it is clear.

6 comments:

  1. Hi ST Sir,

    I took BOF of PDL and later moved my stop to 2 points below A, but it was taken out in that sudden move down.Though re-entered above B but missed good 20-25 points.

    Sir plz suggest how could it have been managed better.Did I moved my stop too early?? or Was it one of those spikes which are deliberately meant to take out SLs (probably a thought/reason generated by sub-conscious mind to feel better :) )

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  2. Anurag

    You managed it well.
    Being expiry day it was an effort by some big boys to push the price down.They failed and scrambled to exit fueling further rally

    ST

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  3. Hi, why do you consider/term the move C - D as Impulse ?

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  4. Anon

    I used the term impulsive move as the move was in the direction of the established trend

    ST

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  5. Thanks. My doubt is clear now on MSP. I will try to find the setup in previous charts.

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  6. Thanks Sir, for the clarification.

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