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

Tuesday, October 15, 2013


Nifty gaped up above PDH. An outside trend Gap IR formed. Price failed to continue the up move. Did not short below IRL due to PDH and PDC . BPB of PDH/PDC gave a short. Nice move down. TP at BRN. BOF of BRN/PDL gave a long signal. Long above MSP. covered the trade on TST of PDC. Went short below MSP. I thought it will touch BRN. TP at PDL. Done for the day.


  1. Dear sir,

    I am following your blog and learning a lot. Thanks for sharing your trading knowledge with us.


  2. sir, I don't find 'PDO' marked in your charts.
    Why sir?.

  3. Arvind Kumar

    PDO is not tracked by many traders and rank low in strength. Only tracking the very relevant levels. Simplify.


  4. 'BOF of BRN/PDL gave a long signal above MSP.' but this was CT. What made you not to scratch when the price retraced below MSP LEVEL and also PDL. EVEN THE FLUID ZONE IRL to PDL, DIDN'T REVERSED.Further what made you to cover this trade at PDC ( a weak DP in comparison to PDH) and not wait till PDH, AS it is generally expected to TST/BOF of SECOND LAYER of LOL.
    i'm trying to learn, and didn't traded today, and was online all-through, paper trading.

  5. Sir in trend gaps you have mentioned Trend gaps are likely to attract profit booking at the first sign of opposite order flow. sir kindly update this thnx

  6. uld b better if u mention the no. of points gained/lost in each trade..

  7. Shai

    My stop was below PDL and escaped by a point. Why the stop below PDL ? I have explained it earlier Pic no 9 in post titled Initial stops.Further in 11102013 example.
    My expectation was a move till PDH. But it tested PDC and moved below the flip at 6140. Hence covered.We have to respond to the price action. Rules wont work. There are only guidelines.
    Once price cracks the MSP it is considered as trend change. SO long above MSP was a trend trade. Read the post on MSP


  8. Anon
    This is a discretionary method and not a trading system. Results will never be the same and vary from person to person.
    Here I am not teaching a trading system, but a few concepts I use successfully in my trading.


  9. amber
    Market was in an uptrend for the last three four days. Now today it gaps up.
    Think about the positional traders. They are already sitting pretty on profit.They are expecting a further up move. What will happen if this up move fizzle out ?. These positional longs will panic and start booking profit dragging the price down.
    This is what happened today. these longs kept their stops below IRL. these orders triggered an 80 point down move.
    Opposite will happen in the case of a CT gap.


  10. Hi Smart Trader

    Are you using 5 min chart or 3 min chart? And which charting software. I see a difference in the candles with my 3 min chart


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