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

Thursday, January 16, 2014

16012014


Nifty opened above PDH and refused to go beyond the first bar. IR formed. Suspected a Barbed wire around PDH. Short on break of IRL as BOF of PDH. Covered when second attempt to the downside failed. TST of IRL was a good opportunity to short. Missed it as it was a channel move to the upside. Long on BOF of LOD. TP when IRL rejected. Attempted a short when LOL BOF of PDH/IRL . Short was on break of MSP. Stopped out.Entire day Nifty was trading within 30 points.

27 comments:

  1. Hi Sir,

    Thanks for your information.

    1st traded i took the same place.

    @12:30pm, there are 3 red candles..and crossed below LOD..is there no sell signal over there??

    Please suggest me..

    Thanks,
    Mahesh

    ReplyDelete
  2. Hi ST
    I shorted on the second candle today(on my charts) as BOF PDH and got stopped out.
    How could have I avoided it?

    Thanks
    TBP

    ReplyDelete
  3. sir,
    what is the stop loss for your BOF OF LOD trade?

    ReplyDelete
  4. Is there any Simulation software that simulate the historical trades bar by bar..?

    ReplyDelete
  5. Mahesh

    On range bound days generally Nifty swings wont last more than 25-30 points.
    Market was showing any interest to go down. In case of strong selling it should have gone to BRN on the earlier down move after a pull back.

    Pullback made two higher highs and higher lows. Longs from 6312 area might have shifted their stops 6318 area. The second leg of the down move was this stops triggering. BO bar of LOD was having lower tails which showed rejection.
    Further BPB of LOD was not an orderly one , but just an inside bar

    Maximum move that can be expected for a BPB trade was 8 points to BRN. Hence did not enter on BO/BPB

    ST

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  6. @Naveen
    Sir with your permission....

    As usual amibroker does it!

    But nothing will replace your LIVE experience. Seeing the closed bar to watching and observing live bar makes a very big difference.

    The funniest thing is I use next bar timer to see whether the current bar is closing above or below the signal candle.

    Raghu

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  7. Iam facing one issue sir,

    Iam able to identify the decision zones like msp do pdc pdh irl irh and so but could not able to spot the decision points.

    babu

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  8. Hi any one from US on this blog?

    Need help towards some buying activity from there.

    Please share you email id.

    Raghu

    ReplyDelete
  9. TBP

    Sometimes we get trapped. It is all in the game

    But in this case you could have avoided it. The entire first candle was above PDH. So many traders went long there. Where they will place their stops? Below the first candle or below the previous day swing low ?

    Now another move up. Where are the stops of longs now ? Some below the second candle low a new swing low. These stops helped your second trade
    Hope it is clear

    ST

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  10. Anon

    Just below the pin bar which made a higher swing low

    ST

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  11. Naveen

    You can do it in almost all charting soft wares. I was doing it in Amibroker

    ST

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  12. Babu

    These areas are called decision points. They are not exact points but narrow zones.
    We are trading the three patterns occurring at these zones

    ST

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  13. Raghu

    Right. Nothing can replace the live experience. It is just like watching the tug of war video.

    ST

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  14. @Babu

    If you are facing this issue then just use the line chart for first few weeks or months I learned this DP trading in the same way. Its very use full as it filter some great amount of H-L noise.

    Raghu

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  15. Hi ST,
    I am from ernakulam .
    gone through your book.
    It was a great read .
    Are you member of TSF.
    I know vijay chettan ..

    Between how many trades per day on an average ?

    rgds
    kishroe

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  16. Hi ST,

    If the stops were placed below the first candle, then I would have got stopped out on my short because the second candle closed below the low of the first.In this case I totally forgot about IRL. Is my thinking right??

    TBP

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  17. TBP

    I am afraid you got it wrong
    I was referring to the chart in your blog
    Your first short failed because there was no order flow from other traders in your favor. ie no stop triggering
    Second trade worked because it triggered the stops below IRL
    The right entry was on 12th candle in your chart to take advantage of the stops
    ST

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  18. Hi ST
    there was a typo from my end
    It shud be I wud not have got stopped out...

    TBP

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  19. Sir good evening sir i could not understand this ie no stop triggering as mentioned by you , kindly update thnx

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  20. Amber

    As far as possible our entry should be in a location where many other traders keep their stop loss.
    We need order flow to support our position. Triggering of these stops will create a move in our favour

    ST

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  21. Kishore

    Sorry. I missed your comment.
    Yes. I post in forums as Niranjanam
    TSF,Tj and Indi. But rarely

    I know Vjay through the forums. We have not met personally.
    Usually I take 2-4 trades a day

    ST

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  22. thanks ST

    rgds
    Kishore

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  23. Hi ST Sir,

    A small suggestion, hope you won't mind. IMHO, renaming TST as TSR would help to remember and relate to the terminology better.

    Regards,
    KSG

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  24. KSG

    I agree TSR is better than TST
    But changing will bring in a lot of unwanted and unproductive work for me.
    Existing readers will start asking what is TSR and every new reader when going through old charts will ask what is TST

    ST

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  25. my today's trade chart link - https://www.dropbox.com/s/widbama5j10qew3/NFNIFTY%2030-Jan-2014.jpg

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  26. Adhi

    Nice trades
    Shows your maturity as a trader.A novice cant identify and reverse a wrong trade so fast

    ST

    ReplyDelete

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