Nifty gaped up within previous day range and attempted to break above PDH. BOF of PDH gave a short signal. I went short below DO. I was expecting a quick 10 point move to RN. But it took more than 90 minutes to travel 10 points. TP at RN. Nifty traded in a range for a while and broke down. Went long on the LOL BOF of PDC/RN. Trade did not move . Scratched. Went short on BOF of RN. Entered earlier as I suspected a bounce from PDC to form a Barbed wire. TP above the pin bar high.
Hi ST,
ReplyDeleteCan we trade RNs with same authority as DPs and BRNs??
Looking at ur first and last trade raised the question.
Thanks
TBP
ST,
ReplyDeleteIf you don't mind please tell me " How many Nifty points do you make on an average per month" ?
Rgds,
Rohit
Sir,
ReplyDeleteI would like to present one of my observation here-
In a down trend I consider the 1st HL formation as good reversal point.
Once reversal is done, first target is MSP, if MSP not taken out, close the long and go short.
same thing will repeat in next Higher Low formation.
With a down bias today I have not closed my position at HL but waited till the MSP is broken in
4 situations and confidently held the short till close which I initiated at DO.
http://tinypic.com/view.php?pic=117r7dy&s=8#.UujZZifhWt8
Raghu
TBP
ReplyDeleteWhen I started,RN xx50 levels were not very prominent. Later after the introduction of xx50 option strikes, slowly it is getting important as BRN
Near the expiry NS and NF levels will be almost same and RN becomes more important
http://niftynirvana.blogspot.in/2012/02/clash-of-titans.html
ST
ST,
Deletejust out of curiosity...what is the connection between Nifty spot and Options defense? I can understand defending Stock options with stock prices, but to defend nifty options with stocks, they may have to work with multiple stocks, sounds complicated. I am sure I am missing a gorilla here, please help me understand, this is not a priority though I have lots more to understand on DPs which I am sure will keep me busy for a very long time.
S Roy
DeleteBig institutions are option sellers. They will be having big exposures at strike levels.
They defend these areas with their might especially near to expiry.The volatility you witness on expiry day is because of this. It is a premium eating game
ST
Rohit
ReplyDeleteMy target is average 10 points a day after commission.Assuming 20 days it comes to 200 points a month.
I am making it consistently
ST
Sir,
ReplyDeleteWhere exactly do you keep your trailing SL at flipzone? Should we keep our trailing SL behind flipzone in the same way we hide our initial stoploss behind DP? If so, can we hide our trailing SL, 3 points behind flipzone?
Thanks.
S.Karthikeyan
Sir,
ReplyDeleteRN XX50 assumes as much importance as BRN during expiry. Can we safely assume that barring the expiry week, RN need not be looked at as a strong DP in the remaining 3 or 4 weeks?
Thanks
S.Karthikeyan
Raghu
ReplyDeleteGood observation
Have a look
http://i60.tinypic.com/14aj794.png
ST
Hi ST,
DeleteIs this a confirmed observation that can be used live? Thanks.
S Roy
DeleteIt works only if the trend is strongly down and the move is not over extended
Actually the first situation is a complex pull back and the second one a TRAP
Here also the entry is very discretionary Trend should be strong and DP should be weak
ST.
ST
ReplyDeleteAbt your 3rd trade-BOF od RN:
Why not go short at the earlier point highlighted by box? http://i59.tinypic.com/359a1js.gif
OR Did you want the low (inside the box) to break to trigger your trade? Thx,
DM
SK
ReplyDeleteBetter to take note of RN always. Day by day it is becoming as important as BRN
You can use 2 or 3 point margin behind a flip.There should be some momentum after the entry otherwise flip will not hold .Example todays first trade
ST
DM
ReplyDeleteI was already long then. I exited the long on break of the BO candle.
Price again went above RN and sold. I went short on break of swing low.
I am not very comfortable with stop and reverse. I exit and enter again
ST
ST,
ReplyDeleteIt is regarding BOF of PDH. I too hoped it to give quick points and fill the gap. The trade ultimately did it but took too much time. How to deal such situation. What to do?
1) Whether sit tight till target is achieved.
Or
2) Scratch it as not moving as expected, taking too much time.
I would appreciate your thoughts on this. How can we deal with it better?
Thanks
ST and Raghu
ReplyDeleteThanks for sharing the observation of HL.
Thanks for the reply ST
ReplyDeleteRgds,
Rohit
URD
ReplyDeleteIt depends on the location.
I think it is better to stay with the trade if a strong signal like BOF at a Strong Location like PDH especially at the open.
Most probably this will become the days extreme. Let us sit tight if we are trading an extreme or a probable extreme.
What do you say
ST
Thank you sir,
ReplyDeleteThanks you Dave,
I feel short should be depending on the distance between E to MSP.
If its less, then the short at TST or BOF of MSP will justify due to lack of strength for price to move up which confirms the orders too (typically it happened today)
If the distance between E to MSP is more as you shown in the pic then as you said may be at D or B SL MSP.
Raghu
Sir good evening , sir in todays update you have not taken IRL any reason for it , kindly update thnx
ReplyDeleteST,
ReplyDeleteThanks. I too feel location is important. It is just the momentum at that particular point that it lacks. It kind of frustrates. But that is the reality. Lets accept it.
Raghu and ST,
ReplyDeleteI feel this topic is worth making a blog post. It will be better understood by others if these thoughts are put together in a nice manner. Request you to do needful.
URD
ReplyDeleteWe will do it after going through some more historical charts
ST
Sir & Dave
ReplyDeleteactually it not "depending on the distance between E to MSP"
It should be "depending on the distance between HL to MSP"
Raghu
ST,
ReplyDeleteIt looked like a channel to me ..
So hesitated to take the trades...
Is day not a diagonal barbed wire till the last fall ?
rgds
Kishore
ST and Raghu,
ReplyDeleteHere couple of historical charts.
http://i59.tinypic.com/2h5ra4z.jpg
http://i58.tinypic.com/34o3l1g.jpg
Kishore
ReplyDeleteIt was not a channel
Channel will make successive lower highs and lower lows. Here price traded in successive lower ranges
ST
sir, what is today's HIGH,LOW and CLOSE ....? sir i am using 3 min nest chart for trading but very different candle creating between our chart i think your chart is more perfect what kind of chart are you using ? replay me pls
ReplyDeleteSir kindly update on my question thnx
ReplyDeleteGood Evening ST,
ReplyDeleteI shorted after breaking of RN & PDC around 1.15 PM & later closed it with loss. Is it a right trade?
Thanks
Amber
ReplyDeleteIRL, MC Low and DO same levels
ST
Anoop
ReplyDeleteOHLC
6161.10,6174.95,6107.25,6127.90
ST
Sir thnx very much
ReplyDeleteSanjaya
ReplyDeleteAvoid direct breakouts as far as possible.Look to sell the range highs and buy the range lows.Most of the breakouts will trap you.
ST
ST,
ReplyDeleteMy problem is that I am not able to manage my trade well, especially I am not able to decide if I should hold on to a trade if its not moving , or I should exit. Take today's example.
http://imgur.com/SueqVVr
I shorted at point 1 as BOF of PDH. I took an exit at 2 when price went above the minor swing point just before it. I felt that the price is not moving in my direction and so exited.
Then again I took a TST of PDH and shorted below the range low at 3. Price once again went up and formed a range. I kept 4 as my SL, but when price reached 5, i got fed up and exited at BE, just before the bearish WRB.
I am confused between "Identify when you are not right and move out" and "Give the price some play area".
hi ST,
ReplyDeleteI'm learning from your blog. Thank you!.
PATrader
ReplyDeletehttp://i61.tinypic.com/20h402.png
ST
Thanks ST for your response on my comment.
ReplyDelete@URD,I feel that what you are suggesting is based upon the definition of trend change. A trend change from down to up happens when there is a) a Higher Low and b) a Higher high. A higher low fulfills first criteria of the trend chage definition. But until a higher high is not formed by breaking the MSP, the downtrend is still said to be intact. What do you say?
PATrader
ReplyDeleteYesterday I had written this in the reply. But it is missing.
Hope you drive a car.Remember how you learned it.
First you learned about the controls.Then you simulated it and practiced it live.This is not enough.
To become a good driver, something else you have to develop. It is called road sense. It takes time.
You have to develop Market Sense. It will take time. But unfortunately people will flirt to some other method before this happens
ST
PATrader
ReplyDeleteI posted those historical charts in reference to the "observation of HL shared by Raghu" and its consequent discussion with ST and Raghu. You are right, we need to wait till MSP cracks for confirmation of new trend.
ST,
Thanks for sharing the http://i61.tinypic.com/20h402.png