There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Thursday, March 6, 2014
06032014
Nifty gaped up above PDH. IR formed. Avoided long above IRH as NS RN was very close and I expected a range day. There was a TRAP at the tight trading range low also MSP. Long above RN NS. trailed till 6415 level. No other trades today.
The initial move was to the downside. ie after gap up open price was moving down to PDH which shows selling at higher levels. We must be careful to take such trades. Initial up move, a pullback, break of IRH is an ideal trade
There will be. But this will not guarantee the success of a BO. 1.Critical mass should be short. Day traders generally enter on break of a swing pivot. Here price did not break a swing pivot to downside. 2.All positional traders are long they wont panic and exit on an upward breakout. 3.There should be follow up buying after breakout. BO will fail in its absence. 4.There could be Absorption or there could be big orders behind these areas waiting to be filled.
Take a decision with available information and exit if you are proved wrong
BRN-Round numbers like 6500,6600 etc ending in 00 RN numbers ending in 50 like 6550,6650 etc. NS means Nifty Spot. We monitor BRN and RN of Nifty spot and futures.
You are right There was a BOF at PDH .I hesitated there and missed a low risk entry
If you consider the morning price action as a continuation of previous day You can view this as a BPB.Imagine gap move from PDC to DO as a wide range bar and thereafter a nice pullback to PDH.
Hi ST,
ReplyDeleteNS RN you marked is near NS 6360 as per my chart .
thanks
Kishore
Hi ST
ReplyDeleteGot trapped and then got to know about it. Was lucky to scratch the short trade though.
Managed to trail the next long till 6425.
Thanks
TBP
Kishore
ReplyDeleteYou are right.
I was thinking that swing high as NS RN. The TRAP was a BOF of this level I think
ST
ST,
ReplyDeleteWas there any other reason not to take BO of IRH ?
rgds
Kishore
Kishore
ReplyDeleteThe initial move was to the downside. ie after gap up open price was moving down to PDH which shows selling at higher levels. We must be careful to take such trades.
Initial up move, a pullback, break of IRH is an ideal trade
ST
But ST
ReplyDeleteAll these shorts will keep SL above IRH na ?
rgds
Kishore
Hi sir......sorry for stupid question...but unable to find wat is mean by NS RN
ReplyDeleteHallo,
ReplyDeleteWas there not BOF of PDH???
I expected long there. Was I wrong?
Kishore
ReplyDeleteThere will be.
But this will not guarantee the success of a BO.
1.Critical mass should be short. Day traders generally enter on break of a swing pivot. Here price did not break a swing pivot to downside.
2.All positional traders are long they wont panic and exit on an upward breakout.
3.There should be follow up buying after breakout. BO will fail in its absence.
4.There could be Absorption or there could be big orders behind these areas waiting to be filled.
Take a decision with available information and exit if you are proved wrong
ST
Akash Babar
ReplyDeleteBRN-Round numbers like 6500,6600 etc ending in 00
RN numbers ending in 50 like 6550,6650 etc.
NS means Nifty Spot. We monitor BRN and RN of Nifty spot and futures.
ST
Shree
ReplyDeleteYou are right
There was a BOF at PDH .I hesitated there and missed a low risk entry
If you consider the morning price action as a continuation of previous day You can view this as a BPB.Imagine gap move from PDC to DO as a wide range bar and thereafter a nice pullback to PDH.
ST
Sir good evening and thnx
ReplyDelete