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

Tuesday, January 14, 2014


Nifty opened at the middle of previous day closing range. Went short on the break of IRL. Target was the range low. But nifty bounced from the flip area and hit my Trailing S before reaching the target. Long on BOF of RN 6250, the range low. Closed when price failed to go above IRL.


  1. Hi ST,

    If a wouldn't have taken first BO trade, wasn't it a candidate for BOF Long. I am asking because I took it giving my SL..
    Similarly, last fast move - I considered it as a BOF short, where you took TP.

    Deven Malhotra

  2. Deven

    It was a BOF of IRL.
    But you have to consider Bias and space. Bias was down due to gap down and there was no space to IRH ,the FTA
    Last one can be traded as BOF


  3. sir,
    what are the trouble areas for the BOF trade of today?

  4. Hi ST
    Was there an opportunity for BOF IRH today?


  5. Sir,
    I considered from 11:38am to 01:02pm as ABSORPTION because of higher lows in 3m chart and short @6256 and covered @6245.
    I took a short trade at your last TP and covered @ 6245 because i considered it as BOF of MSP High @12:59pm Candle and bias was down.
    Kindly give your suggestion on those trades.

  6. Anon

    FTA is the previous two swing lows ( Below my previous TP) acting as a Flip. But I thought the previous quick down fall will act as a fluid and take price there triggering another set of stops


  7. TBP
    At that time we cannot say it was a BOF as we do not know where exactly is the IRH due to the upper tail.
    Ideally a BOF should trap a lot of traders.It was not a level to attract BO traders.


  8. sir,
    after the flip area the other trouble areas are IR low, IR high, high of the day, and then BRN 6300. is my thinking in the right direction?

  9. Dushmant

    It cannot be classified as Absorption. You may call it a flag. In absorption top side will be flat.

    Second trade is OK


  10. Anon
    You are right.
    Trouble areas are places where we expect opposing order flow.
    DPs and Trouble areas are not brick walls. They may hold or not. We have to make an appropriate decision at these areas reading the price behavior.
    Price action trading is not pattern trading. Context within which the pattern appears is more important.



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