There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Friday, January 17, 2014
17012014
Nifty opened below PDC within the previous day evening chop. BOF of PDC/IRH gave a short signal. Entered on break of IRL. TP near BRN. A range move for 2 hours followed. BOF of BRN and TST of PDL gave a nice short. Cool 50 point move.
Nice trades. Happy to note you could exit and reverse a wrong trade so fast. Shows your maturity as a trader. Pay more attention to space. You could have gone long from LOD on a minor BOF
Sir, I took both trades today. But the first one that I took was bof on ir. Was that a valid trade other than the fact that the space was limited? I assumed many traders would be trapped in the bof so went short.
Took BOF PDC short directly. As u mentioned IRL held for a long time. But just below the BOF candle below IRL was PDL and BRN. Will space be not a consideration here??
Space is always a consideration. PDL gave support and took 45 minutes to yield. Being aware of the space and FTA is important.If you are aware and have a plan then it is OK.
Today Adhi has done that. He entered long on BO of BRN. When the BO failed hitting PDL he covered it. Then went short to capture the down move.How many traders can do that ? So many people have gone long on break of BRN today and got trapped. Their panic exit caused the momentum move down.
The BO volume was much smaller than BOF. I think it happened due to MSP crack of Higher Timeframe (Just below range low). Maybe they gave up on BOF of BRN and started exit before MSP hit.
Thanks for the reply. One last question. If in case there was a long trade at 6300 (which failed in this case) and instead just exploded upwards, at what level would you look to enter. I am asking this as I was ready for both and had a buy order placed at around 6316, just above the pal congestion and wondering if that was where you would also enter.. Thanks again.
What happened with me is my super fast brain was able to capture only the down move coz before I think of BO of BRN the opportunity was in the air :-) (the main reason was my bias was down till 6250 based on OI)
Bleeped up Brain sees only what it want to see or believe!!
If its true that markets own levels are created by the actions of traders based on their greed and fear?
If yes then, can I call this phenomenon a "volatility" ?
Since many days I observed Levels calculated based on Last 10 trading values using volatility method are tend to respond much more superior as DP's compared to PDH/L/O/C.
More interestingly the SPACE is very convincing in this method while we can still keep PDC and DO for good results.
Today it is very difficult for the price to move up. Too many barriers on top. An explosive up move is not possible and there was not enough time to make a gradual range by range up move.I think I may not enter
Nifty failed to move below a prominent level 6250.Further push below the pivot low failed. So exited the trade. Further down move ruled out because no body is going to make a commitment near market closure. Especially on the last day of the week
Market moves are not entirely dependent on the two emotions of fear and greed.So many other factors influence it. Perception of value, money supply. Cross border fund movements, Currency rates, Inter market arbitrage, political developments, etc. etc.
More than 70% of the orders in global markets are executed by algos.Computers have no emotions. So we cant reach a conclusion that markets alternate between fear and greed.It is not like a pendulum swing. You may share your volatility method, If you are willing.I will encourage you to start your own blog. You are always welcome to make a guest post here.
I cant share anything about this as I do not know about this.
The original IR was the first MC. later you can adjust it to HOD Read the post titled Envelops and Brackets.Once a range gets overlapped by another range trade the new range
Sometimes it happens. It is all in the game.I will try to re enter if possible or will look for the next opportunity. This is not the last and final chance. markets are for ever and will give thousands of opportunities again
my today's trade chart link - https://www.dropbox.com/s/widbama5j10qew3/NFNIFTY%2030-Jan-2014.jpg
ReplyDeleteAdhi
ReplyDeleteNice trades.
Happy to note you could exit and reverse a wrong trade so fast. Shows your maturity as a trader. Pay more attention to space. You could have gone long from LOD on a minor BOF
ST
Sir,
ReplyDeleteI took both trades today. But the first one that I took was bof on ir. Was that a valid trade other than the fact that the space was limited? I assumed many traders would be trapped in the bof so went short.
"You could have gone long from LOD on a minor BOF".
ReplyDeleteYes, noted. thanks.
Nikhil
ReplyDeleteI think you took BOF of IRH/PDC
Space is very important. IRL held for nearly 90 minutes
ST
Adhi
ReplyDeleteI was telling that instead of going for a BO trade better to look for a BOF on the other side
ST
Hi ST,
ReplyDeleteTook BOF PDC short directly.
As u mentioned IRL held for a long time.
But just below the BOF candle below IRL was PDL and BRN. Will space be not a consideration here??
Thanks
TBP
TBP
ReplyDeleteSpace is always a consideration.
PDL gave support and took 45 minutes to yield.
Being aware of the space and FTA is important.If you are aware and have a plan then it is OK.
Today Adhi has done that. He entered long on BO of BRN. When the BO failed hitting PDL he covered it. Then went short to capture the down move.How many traders can do that ?
So many people have gone long on break of BRN today and got trapped. Their panic exit caused the momentum move down.
ST
Thanks ST for the clarification
ReplyDeleteAdhi's manoeuvre was great.
Not many would have done it
TBP
Dear ST,
ReplyDeleteNeed your inputs....long way to go.
please view..http://niftypriceaction.blogspot.in/
Thanks a ton
Chandiok
The BO volume was much smaller than BOF.
ReplyDeleteI think it happened due to MSP crack of Higher Timeframe (Just below range low). Maybe they gave up on BOF of BRN and started exit before MSP hit.
Thanks for the reply. One last question. If in case there was a long trade at 6300 (which failed in this case) and instead just exploded upwards, at what level would you look to enter. I am asking this as I was ready for both and had a buy order placed at around 6316, just above the pal congestion and wondering if that was where you would also enter.. Thanks again.
ReplyDeleteST
ReplyDeleteCould you please let me know the reason for that last exit as you marked inside a hammer.
rdgs
kishore
Adhi was really fast...
ReplyDeleteWhat happened with me is my super fast brain was able to capture only the down move coz before I think of BO of BRN the opportunity was in the air :-) (the main reason was my bias was down till 6250 based on OI)
Bleeped up Brain sees only what it want to see or believe!!
Raghu
sir good evening , sir in todays open why cant the IR be taken upto BOF of PDC , kindly update thnx
ReplyDeleteSir,
ReplyDeleteIf its true that markets own levels are created by the actions of traders based on their greed and fear?
If yes then, can I call this phenomenon a "volatility" ?
Since many days I observed Levels calculated based on Last 10 trading values using volatility method are tend to respond much more superior as DP's compared to PDH/L/O/C.
More interestingly the SPACE is very convincing in this method while we can still keep PDC and DO for good results.
Please make all of us more enlighten.
Raghu
Chandiok
ReplyDeleteGood initiative
Why keeping it private?
ST
Nikhil
ReplyDeleteToday it is very difficult for the price to move up. Too many barriers on top. An explosive up move is not possible and there was not enough time to make a gradual range by range up move.I think I may not enter
ST
Kishore
ReplyDeleteNifty failed to move below a prominent level 6250.Further push below the pivot low failed. So exited the trade. Further down move ruled out because no body is going to make a commitment near market closure. Especially on the last day of the week
ST
Raghu
ReplyDeleteBOF of BRN was the right trade
Market moves are not entirely dependent on the two emotions of fear and greed.So many other factors influence it. Perception of value, money supply. Cross border fund movements, Currency rates, Inter market arbitrage, political developments, etc. etc.
More than 70% of the orders in global markets are executed by algos.Computers have no emotions. So we cant reach a conclusion that markets alternate between fear and greed.It is not like a pendulum swing.
You may share your volatility method, If you are willing.I will encourage you to start your own blog. You are always welcome to make a guest post here.
I cant share anything about this as I do not know about this.
Please do enlighten us
ST
Anon
ReplyDeleteProbably the shorts might have exited either on the BOF of Range low or on the break of MSP leaving very few orders above BRN
ST
Sir kindly update on my question thnx
ReplyDeleteAmber
ReplyDeleteThe original IR was the first MC. later you can adjust it to HOD
Read the post titled Envelops and Brackets.Once a range gets overlapped by another range trade the new range
ST
Sir thnx very much
ReplyDeleteHi ST
ReplyDeleteWhat is the max points you risk for NF ?
rgds
kishore
Kishore
ReplyDeleteI never risk more than 10 points and I rarely allow the market to prove me wrong to exit
ST
ST,
ReplyDeleteIn that case wouldnt you get frustrating early exits, when SL is hit and then the price booms in our traded direction ?
thanks
Kishore
Kishore
ReplyDeleteSometimes it happens.
It is all in the game.I will try to re enter if possible or will look for the next opportunity.
This is not the last and final chance. markets are for ever and will give thousands of opportunities again
ST