Nifty gaped up within previous day range. IR formed. Did not take the short of IRL as it was near the NS BRN. Whole day Nifty created a Barbed Wire around this level. Attempted a long on BOF of range low. It did not move as expected. scratched.
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Hi ST
ReplyDeleteOne more range bound day..nothing so special. Here is my chart,
http://www.mql5.com/en/charts/1625851/nse-nifty-m3-gci-financial-ltd
Thanks.
Hi ST,
ReplyDeleteBelow are the trades i took and chopped around.. Would you please, clarify how i could had avoided those chopping around BRN NS.. like u did.
http://i.imgur.com/ZGQyeyX.png
Bharat
Hi ST,
ReplyDeleteWhy didnt you take the BPB NS BRN below IRL in the morning ?
rgds
Kishore
Bharath
ReplyDeleteYou were trying to trade a 20 point barbed wire range. Only trade no 4 is as per method.Where is space for 1,2 and 3?
Please do not trade with real money now.You are searching for patterns to trade without any feel of the big picture. May need some more exposure to get the thought process right
NS levels are approximations and used for trade management. Not considered as DP unless it qualifies as a range extreme
ST
Hi ST,
ReplyDeleteI have a basic question. I used to read that one strategy work wells for some period fails after that.I want to know how you feel about DP method for the long time perspective say after 5 years? looking for your valuable comments.
Thanks
Suresh
Kishore
ReplyDeleteVery low probability trade.
It is very difficult for the price to go down after a gap up open
Below there were Gap closure area,PDC, BRN 6500 and PDL within 25 points.Reasonable expectation is 10 points. So skipped
ST
Suresh
ReplyDeleteDP method will give you an enduring edge.Method will work even after 10 years. This requires some explanation.
The reason is these are not calculated levels but derived from the markets own action and used as reference points.
Every trader with little experience will notice these levels. When market opens don't you look whether it opens above or below PDC?. People notice whether the current price is above or below opening price.They notice when price breaks above PDH and falls below PDL.
DPs work because so many people notice these levels and use it as reference points to act.DPs will work as long as people look at these reference points.
But PDC,PDH,PDL,DO etc will lose their relevance and may stop working. when ?
The question is for all the blog readers to answer.
ST
ST and other blogmates,
ReplyDeleteDPs won't work if traders stop following them or find something else than DPs to follow.
Thanks
IMHO, it will stop working when the human race become extinct... :)
ReplyDeletea meteor crashing into earth?
Thanks
tRaDeR_B
Hi ST,
ReplyDeleteThere are alot of info here including Decision point book & articles in this blog. As a beginner how to practice and become master in using dp method.Step by step process. Pls guide
Thanks
Arun
HI ST
ReplyDeletePDC,PDH,PDL,DO etc will lose their relevance and may stop working. when ?
IT IS POSSIBLE ONLY IN CONTUNE MARKET WITHOUT BREAK(24 HRS)
RAJ
Raj
ReplyDeleteYou are absolutely right. Congrats.
These levels will work as long as Nifty Futures remains a day market
ST
Good Morning ST
ReplyDeleteTo carry this conservation further here are "my views."
Sooner or later it will become 24-hour market if that is the ultimate transition our market has to go through in future. Then PDLs, PDHs, PDCs, DOs will longer be relevant. Question is should we need to worry now? No. If DPs don't work then something else will
Is market structure going to change, is the structure of support/resistance going to change, will there be no ranges to trade.....
I don't think so..
Markets may not remain the same, but market participants will remain the same as long as we remain as the human.
Thanks
URD
ReplyDeleteYou are right.Nothing is there to worry. Traders should be like Chameleons, willing to change the color and adapt in a jiffy.
When xx50 strikes were introduced what we did? We accepted the reality and changed accordingly.Markets will change so will our methods.
Where there is a will, there is a way
ST
Arun
ReplyDeleteMade a separate post on the subject
ST
Hi Rajesh,
ReplyDeleteYou are a good teacher !
Just one question
You are using quantitative techniques based on price action
There are qualitative techniques based on price and volume.
Is it okay to use combination of these techniques to arrive at entry and exit for a profitable trade ?
I will not trade in futures but will trade in options, please let me know the important points which I have to consider while trading in options ?
Thanks and Regards,
Rajesh
Rajesh
ReplyDeleteSorry. I know nothing about options.
Now regarding the use of TA techniques.These analysis serve three purposes
To identify a trade location
To anticipate the direction of future move
TO measure the strength of current move.
Better to avoid the first category along with DP method as this may create conflicts. Type 2 and 3 can be used without any problem if you feel it helps
ST
Hi Rajesh,
ReplyDeleteWell I identify trade location with DP and confirm it with TA because confluence gives high probability of profitable trade.
I would place order at price levels where the market would reach in case of order flow.
It is gives me confidence to see the thing works !
For exit I look at the DP levels as wells as where it would go as per TA method and decide the exit part
Suppose I decide to play 4 lots of future.
Do I place one order for 4 lots or split or split of 2 order of 2 lots each knowing that I am willing to bear the risk of 10 points for 4 lots.
Please do let me know.
Thanks and Regards,
Rajesh
Hi Rajesh,
ReplyDeleteThis is one of the blog I follow
http://traderfeed.blogspot.in/
Thanks and Regards,
Rajesh
Rajesh
ReplyDeleteDr. Brett is just fantastic
I was a regular reader from 2006 to 2010 . Then he stopped updating. Now started again in this January only.
In fact I had exchanged some emails with him long back. He was so kind to answer my foolish questions
ST
Hi Rajesh,
ReplyDeleteYou have not answered my question about placing orders.
Please do.
Thanks and Regards,
Rajesh
Rajesh
ReplyDeleteI still trade with one lot.
Once I increase the size I will go for all in scale out method. Every trade start as a scalp to FTC. Book half at FTC and make the trade free to trail.
ST
Hi Rajesh,
ReplyDeleteThanks for the reply.
Hope you do not mind calling you Rajesh instead of ST !
Thanks and Regards,
Rajesh
Rajesh
ReplyDelete“What's in a name? that which we call a rose
By any other name would smell as sweet.”
― William Shakespeare, Romeo and Juliet
Dear ST,
ReplyDeleteA query for tomorrow's trading session. You will be looking at saturday;s session for DP's or friday's or both.