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

Wednesday, September 18, 2013


Nifty opened near PDC. Broke above PDH and BRN. Short on BOF of PDH below PDC. Covered when price failed to extend below IRL the MC Low. Then till evening Nifty was channeling and in a Barbed Wire around PDH. Finally a BO above HOD gave a nice move. It was a classic VWAP run during the fag end.There was a 50 point difference between VWAP and traded price.


  1. Sir,
    How u enter on BO of that a limit order,market or stoploss market order.if possible plz clarify and when u enter at the break of candle or opening of a candle or just above the line of HOD.Thank u.

  2. sentu

    Stop loss limit order
    If I feel a breakout is going to happen I feed an order early
    Suppose the HOD is 5904, I enter an order like trigger 5904.50 limit price 5905.50 well in advance


  3. Hello sir ,

    I may again sound silly but i didn't get answer from you on what is the meaning of DP,MC and other shorts ,as it is not in the glossary.
    why i am asking you bcoz i dont want to assume my own shorts when i am learning from your charts..

    Thank You


  4. Gupta

    DP is Decision points
    MC is Master Candle
    There are separate posts on these concepts under Important Posts > Structure and Patterns.


  5. In the last BO trade above HOD, my thinking was to see whether it was a BOF or a BPB of HOD. So i have missed that rally. Here your experience comes into play.

  6. Adhi

    Yes experience plays a vital role in discretionary trading.You will never find a perfect trade. We are taking trades with high probability of winning with good risk management. SCORE it
    S-Space is there.There is no immediate overhead resistance.
    C-Critical mass is short from the morning Those who are trading slightly higher time frames are waiting with a stop above HOD
    O-There will be enough order flow above HOD to move the price a little higher. Not sure about the follow up buying
    R-Risk very favorable.Even if there is no order flow on the buy side, we can exit the trade if it falls back in to the range
    E-Three Earlier rejection from BRN area today is of less magnitude. Probability of a rapid rejection from the level is very low
    Finally the market bias. Still Trading within previous day closing range. Never fell below the MSP
    Considering all these factors will you take the trade or not ?

    Conventional wisdom is to trade what you see. Wrong. seeing is not enough.
    Trade what you observe.


  7. Is this "VWAP run" the reason for the significant gap up today? Their was a huge difference in the LTP and ATP at day end yesterday.

  8. Aks

    Nothing to do with VWAP
    This is US Fed announcement madness
    May give a good shorting opportunity
    BOF/FTC of BRN or somewhere else. Let us see


  9. prior to beginning of channel shown, why not SELL AT BPB OF IRL, when big red candle pierced IRL, FOR TARGET AS PDL. PL GUIDE ME FOR LEARNING PROCESS.



  10. 'Finally a BO above HOD gave a nice move" Ideally should one not wait for BPB ?



  11. Shai

    I was already short ON BOF of PDH and covered the trade when price refused to go below IRH
    Bias was very bullish as price was hanging around at the higher level of previous day range and did not crack MSP. Avoid such late entries.

    Price attempted to break above BRN 5900 thrice during the day.Those who have shorted the market from morning might have kept their stops above HOD. So there is no need to wait for pull back. Such stop triggering breakouts rarely give favorable pull backs



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