There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Friday, December 13, 2013
13122013
Nifty gaped down below PDL. IR formed.Did not attempted BPB of IRL as BRN was very near.Long on BOF of BRN. Scratched later. I was expecting a bounce on week end after continuous fall. So skipped the short at IRL.
Your placement of IRL is interesting. Why did you not place the IRL at the low of first candle? How do you decide on the initial range? For eg I had kept my IRL at low of first candle, because the price reversed from there for a temporary upswing. I had kept my IRH at the same position as you have. Thanks!
Decision points are zones not exact levels. We will never know for sure where exactly the orders are especially when there are tails. Even BRN are zones. Order could be between 6198-6202 not exactly at 6200 I first draw the lines ignoring the tails. Later on when market gives further clues I revise it slightly to accommodate it. Today first it was at 6220. When another test happened I revised it slightly. Then the flip confirmed the level. Market is a place where millions of people executing a million different strategies. No body can exactly define a structure for it.There will be overshoots and overlaps. DPs are something you can expect to work reasonably well.
Draw DPs with a highlight pen rather than a drawing pen.Tolerate slight overshoots and overlaps.
Consider an uptrend move as climbing stairs of a high rise building. Once you climb, the ceiling becomes floor and you can run around there freely.Now the question is are you climbing to the next floor or coming down to the lower one. Core concept is the acceptance and rejection of price from a new range whether it is lower or higher
I drew the IRH on the high of the 4th and 5th candles, after seeing the sixth candle, making a lower high. You have waited for a higher high to be formed and correctly so. Please explain, why you didn't draw IRH on the high of 4th and 5th candles.
I would like to share one observation. Whenever the market is trending like today, market gives an opportunity to trade at least once in the direction of trend. I have noticed that many a times BOF of MSP gives such as opportunity. I have marked it on today's chart, find it here, http://www.mql5.com/en/charts/1171296/nse-nifty-m3-gci-financial-ltd
I do not know if you or other trades have observed it. I would appreicate if you or others could share their opinion.
Very good observation. I have noticed it. A few time I have got trapped trying to trade the break of MSP. Most of the time these moves were originated from TST of less prominent levels.A grinding trend move will accelerate after this pattern. I named it TAP (Trend Acceleration Pattern). It is a variation of complex pull back. Make a post on the subject here as my guest.
Your placement of IRL is interesting. Why did you not place the IRL at the low of first candle? How do you decide on the initial range? For eg I had kept my IRL at low of first candle, because the price reversed from there for a temporary upswing. I had kept my IRH at the same position as you have.
ReplyDeleteThanks!
sir your IRL is diffrent from my charts as i sent you the details..
ReplyDeletejust checked NSE TAME charts it is similar to my charts!!!
how i chart is delivering different?
hope you are using icharts.
Soma
Sir,
ReplyDeleteCan we consider the 01.09 bar which went up to 6199 as BOF of BRN
Thanks
Siju
aks
ReplyDeleteDecision points are zones not exact levels. We will never know for sure where exactly the orders are especially when there are tails.
Even BRN are zones. Order could be between 6198-6202 not exactly at 6200
I first draw the lines ignoring the tails. Later on when market gives further clues I revise it slightly to accommodate it.
Today first it was at 6220. When another test happened I revised it slightly. Then the flip confirmed the level.
Market is a place where millions of people executing a million different strategies. No body can exactly define a structure for it.There will be overshoots and overlaps. DPs are something you can expect to work reasonably well.
ST
"Decision points are zones not exact levels"
ReplyDeleteThis will make lot of difference.
Babu
Soma
ReplyDeleteYes, I am using Icharts.
May be they are filtering freak trades.Sometimes there could be a single freak trade at 6211.Exactly I dont know.
ST
Babu
ReplyDeleteDraw DPs with a highlight pen rather than a drawing pen.Tolerate slight overshoots and overlaps.
Consider an uptrend move as climbing stairs of a high rise building. Once you climb, the ceiling becomes floor and you can run around there freely.Now the question is are you climbing to the next floor or coming down to the lower one.
Core concept is the acceptance and rejection of price from a new range whether it is lower or higher
ST
ST
Siju
ReplyDeleteTechnically it is a BOF
But I will prefer the price to go lower and get rejected
ST
Sir,
ReplyDeleteI drew the IRH on the high of the 4th and 5th candles, after seeing the sixth candle, making a lower high. You have waited for a higher high to be formed and correctly so. Please explain, why you didn't draw IRH on the high of 4th and 5th candles.
Karthikeyan
Sir,
ReplyDeleteIs it mandatory that IR must be more than a minimum, say 12 or 15 points?
Karthikeyan
Hi ST
ReplyDeleteI would like to share one observation. Whenever the market is trending like today, market gives an opportunity to trade at least once in the direction of trend. I have noticed that many a times BOF of MSP gives such as opportunity. I have marked it on today's chart, find it here,
http://www.mql5.com/en/charts/1171296/nse-nifty-m3-gci-financial-ltd
I do not know if you or other trades have observed it. I would appreicate if you or others could share their opinion.
Thanks
Kavi
Kavi
ReplyDeleteVery good observation.
I have noticed it. A few time I have got trapped trying to trade the break of MSP. Most of the time these moves were originated from TST of less prominent levels.A grinding trend move will accelerate after this pattern. I named it TAP (Trend Acceleration Pattern). It is a variation of complex pull back.
Make a post on the subject here as my guest.
ST
Sir Thanks for the details.
ReplyDeleteBabu
Hi ST
ReplyDeleteSo nice of you. All i learned about the price action is from you. Your reply on the subject shed more light on it. Fantastic..
Though i have never written anything in the past, i will try to put my thoughts together. Once ready I will send it you for your inputs and approval.
Thanks
Kavi
Kavi
ReplyDeleteDo it leisurely.No need to hurry.
ST