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

Wednesday, December 11, 2013

11122013

Nifty Gaped down below PDL. Short on BPB of PDL. Stopped out of the trade. Tried a long on BO of MSP. It did not go beyond PDL/HOD/IRH. Scratched the trade. BOF of HOD was a nice short through the fluid. But missed it . Long on the BOF of LOD. Entered early as I suspected a reversal from MSP. But Nifty broke MSP and HOD . Nice move up

12 comments:

  1. Hi,

    Shorted the BOF of High of the day, but missed the last upmove. It didn't give any signal in my chart (i use 5 mins). That was a quick move.
    I hope you entered considering the breakout candle as Master candle (Doji was inside it). But shall we not wait for at least 2 candles to be inside Master candle?

    Thanks,
    Deven Malhotra

    ReplyDelete
  2. Hi ST,
    was not trading today...
    but when u took the BO of MSP, was there enough space as PDL was above??
    wanted clarification..
    thanks...
    TBP

    ReplyDelete
  3. Deven

    It cannot be considered as a MC.
    I did not wait for a formation because it will again reduce the space to FTA.Entered on break of the BO candle considering the volume of BOF bar and critical mass
    The down move was fast and people might have shorted at three pivot low breaks.
    Risk was also very low
    ST

    ReplyDelete
  4. Sir,
    Why did you avoid the BOF happened after 11.24

    Thanks
    Siju Thomas

    ReplyDelete
  5. TBP

    Space was less at 12-13 points.
    Do not make rules as there should be 20 points or 25 point space etc.

    Being aware of the trouble area is important. If you are well aware of the FTA and ready to manage the trade you can very well enter.
    I was well aware of the DPs such as PDL,DO,IRH etc.I expected enough stops above MSP so that it will move above HOD and trigger the stops there setting a chain reaction. The trade went exactly where it is supposed to go. PDL. but failed to move above and scratched. Still at little profit.
    There are other methods to manage such trades.
    http://niftynirvana.blogspot.in/2013/10/sniper-shots.html

    ST

    ReplyDelete
    Replies
    1. Hi ST,
      point understood... Thanks for the reply...
      TBP

      Delete
  6. Sir, you have not emphasised much on volumes in your blog. why sir?

    Thanks.

    ReplyDelete
  7. Siju

    BOF of every swing point is not tradeable. Trade DPs.Well established range extremes can also be considered as DPs

    http://niftynirvana.blogspot.in/2012/05/trading-ranges.html

    ST

    ReplyDelete
  8. arvind kumar

    I do not pay attention to volume regularly. BOF is an exemption. On BOF I just glance at the volume bar to know weather a lot of people have got trapped. Bigger the volume better the chances of reversal

    ST

    ReplyDelete
  9. Sir on11th can one consider irl as DP? You have not done that.

    Soma

    ReplyDelete
  10. Soma

    There is nothing magical about DPs.
    They are levels that everybody notice. Once price breaks the levels they may not be obvious and will not standout.Hence may become less effective
    http://niftynirvana.blogspot.in/2012/12/love-virgins.html

    ST

    ReplyDelete
  11. sir you said,


    There is nothing magical about DPs.
    They are levels that everybody notice. Once price breaks the levels they may not be obvious and will not standout.Hence may become less effective
    http://niftynirvana.blogspot.in/2012/12/love-virgins.html

    in that case what about the price flips? if a level is used and abused then how we consider them as resistance turned supports and vice versa?

    Soma

    ReplyDelete

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