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

Wednesday, April 16, 2014

16042014



Nifty opened within previous day range. IR formed. FTC/BOF above IRH gave a short signal. Short on crack of MSP. FTA was RN 6750 and I was ready to deal with a bounce. Price broke RN,IRL.PDL and hit BRN. TP at BRN 6700. Another short on BOF of MSP which is also NSBRN 6700. TP below 6700.
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10 comments:

  1. UnknownApril 16, 2014 at 3:44 PM

    Hi ST

    Thanks for the analysis.
    Could not take the second BOF as internet froze.

    Thanks
    TBP

    ReplyDelete
  2. Deven MalhotraApril 16, 2014 at 4:04 PM

    Hi ST,

    Where was your SL, when price crossed NS BRN, formed a pivot & then MSP formed. MSP ate my SL & i couldn't ride till NF BRN.

    http://www.tradewithdeven.blogspot.com/

    Thanks,
    Deven Malhotra

    ReplyDelete
  3. AnonymousApril 16, 2014 at 4:15 PM

    Hi ST,
    Small tail break enough for a BOF ? (referring both the trades)

    rgds
    Kishore

    ReplyDelete
  4. SMART TraderApril 16, 2014 at 5:45 PM

    Kishore

    Both the BOF did not penetrate enough.
    First one I considered as a FTC above IRH/previous day range high. That is why I waited till MSP to crack for confirmation.
    For the second trade Critical mass was short and I was looking to go long. But two attempts to go up failed and ended as candles with upper tails which showed rejection. Here I entered on break of the BO candle to reduce risk. I suspected a bounce from MSP. Actually price bounced before hitting MSP and scared me
    Both the trades were trend trades

    ST

    ReplyDelete
  5. SMART TraderApril 16, 2014 at 6:10 PM

    Deven

    The second WRB broke NSBRN and pulled back. My stop was above this green bar high which was 6727.10

    Most of the times these kind of momentum moves in TREND DIRECTION will have a second leg.Dont keep too tight a stop if you are riding it

    ST

    ReplyDelete
  6. AnonymousApril 16, 2014 at 6:30 PM

    Hi ST,

    Initial breakout trade valid at the 3rd candle?



    Regards
    Suresh

    ReplyDelete
  7. SMART TraderApril 16, 2014 at 6:35 PM

    Suresh

    NO. IR has not formed then.
    Where is space for the trade to move?
    Above there are previous day prominent swing high and NS RN 6750.
    The trade is counter trend, low probability one

    ST

    ReplyDelete
  8. AnonymousApril 16, 2014 at 6:38 PM

    Hi ST,
    See my trades
    http://tinypic.com/r/264lyzl/8

    Look at the first candle ..
    As per my chart would you have taken the first trade at the place you took?

    rgds
    Kishore

    ReplyDelete
  9. SMART TraderApril 16, 2014 at 7:04 PM

    Kishore

    May not take.
    Always there is too much difference in first candle of the day.

    ST

    ReplyDelete
  10. AnonymousApril 16, 2014 at 7:14 PM

    ST,
    I think I should move to icharts

    rgds
    Kishore

    ReplyDelete

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