Nifty opened above PDH. IR formed. I was expecting a Spike and Channel. Went long on the break of IRH. BO of IRH failed . Scratched the long trade. Later Nifty broke the low of the tight trading range and made another lower range. BOF of range high gave a short. I was prepared to exit at PDH, BRN or PDC. These level failed to stop the fall. Finally covered at PDL.
I have also noticed the 2.27pm BOF formation. But hesited to take position because of PDH, PDC, BRN was nearby. How did you taken the position here?
ReplyDeleteAdhi
ReplyDeleteWell. You noticed the trouble areas.
You need not skip a trade if a trouble area is very close. Consider other background information and take a decision
a)Bias was little bearish
1.BO failed above IRH
2.More than 50 candles traded within a tight trading range. No attempt to test the HOD
3.Break down to a lower range.
4.BOF of range high. Trapped traders order flow
b)BOF was very strong and price may move down to PDH( LOD at that time) there could be a lot of stops here. If these orders trigger price will move down further.
c) There is a swing high just above PDH.This is the FTA There could be stops here also
d)There is a potential of 10 point move even if price bounces from FTA
enough distance to scratch trade
e) if price manage to break any of these levels. these levels will act as flips and protect our position.
Considering all these, will you take the trade ?
sure, Lot of price action reading required along with the decision points. thanks
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