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

Thursday, September 19, 2013


Nifty gaped up above PDH and got resisted at BRN. IR low formed. TST of IR low was a signal to go long as the market bias was up. Did not take it as I suspected a Barbed Wire around BRN. Finally went long on BPB of IR high. It moved well. It is too late for another trade.


  1. hi,
    If u plz clarify how u exit a trade and what critia u follow for that..thank u.

  2. Hi ST,

    There was a channel between LOD and BP. How still you were confident of going long.


  3. I took around 6115 level of 10 am as TST of IRH and went short at 6109 and covered when the market bounced back from the low of the day around 6089. I also took low of 6080 as TST of IRL but covered my short and did not initiate long as the NF was already around 2.5% up and so developed cold feet. But in the hindsight, I regret missing such a good trade :(
    Is my analysis correct?

  4. sentu

    Depends upon the situation
    1.At FTA
    2.On crack of Flip area
    3.When trailing stops hit
    4.At the Next DP
    5.On getting undeserved profits
    May need a separate post on this subject.We will never perfect exits


  5. Subs
    It was not a channel but a soft trend.Price respected Flips. Read the post on channels


  6. Anon
    There is nothing wrong in your analysis. Logical target of any range trade is the other extreme of the range
    Even I have not taken the TST of LOD as I was suspecting a Barbed Wire around BRN


  7. hi,
    after entering FTA,DP or u see the price action on trouble zone and decide..thank u..what means of undeserve profit.. sharp spike or something.

  8. sentu
    I expect my entry points to act as Flips. When the market fails to hold this, I will think about exit

    Some times market exceeds our expectation and trade run much more than we expect breaking strong DPs, This may mean revert very fast. So I quit retaining the profit


  9. No system is 100% perfect. I am referring to VWAP run you have mentioned on 18-09-2013. The same failed today 19-09-2013.

    Anyway, it is indeed a potent indicator, that cannot be ignored by any intraday trader.

  10. Anon

    VWAP is not a stand alone system but a small factor in the big picture


  11. BEFORE YOUR BPB ENTRY, I HAVE TAKEN BOF OF IRH, A LONG RED BAR, what was wrong with my entry ? could you please guide. The BPB entry didnot occur in my mind, due to failure of bof entry. Is it good to take bpb entry in reverse direction if BOF entry has failed and viceversa ?? i am consistently making such mistakes, how to overcome, pl guide


  12. shai
    Theoretically it was a BOF. But we have to consider other factors also
    1.You did not notice BRN. No space.
    2.Trade was counter trend
    3.Bias was very bullish after Fed announcement and Expectations regarding RBI announcement
    4.A massive gap up day totally in control of positional players
    5.Never take counter trend moves on such days unless a break of MSP happens



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