There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Monday, May 19, 2014
19052014
Nifty Gaped up above BRN within previous day closing range. Missed the BOF short of BRN. It was a neat 60 point down move to PDL. Went long on break of RN 7250 as BOF of PDC/PDL. TP when price failed to remain above BRN 7300
Hi ST The large range move of Friday of 430 points created a median for Nifty and most of the stocks. The median for Nifty was 7311, just above BRN. So it was double confirmation for a short. Similarly, the median for Tata steel (which I traded) was at 460. It went up till that point after BOF IRL/PDC. At 460 there was a BOF.
The reason for mentioning about the median is that usually Median gets converted into MSP. ( The post by URD where he illustrated about TRAP) Another reason was, last night I was wondering where would Nifty possibly give an opportunity to act after a 430 point range day. So the answer was just above BRN7300 and at median 7311. It worked like magic as if the whole trader fraternity knew it.
The beauty of DP trading never ceases to entrall me. Thanks a lot for coming out with this method in the open.
TBP, In ST's method we are trading decision points that are visible to all. Since median is just a calculated number like daily pivot, and r1, r2, etc. though in this case it seems to have worked beautifully, could there have been other things at play here like in the case of Nifty the last attempt to cross 300 which was around 2:30 pm on Friday was quite visible to all?
My stop was below the BO candle of BRN 12th candle to the left of that micro swing low. It was acting as a MC. So I did not raise the stop. The candle you marked was a micro TRAP it seems
ST, One query. The BOF trade that you took. Was there a possibility of it turning into a TRAP setup short? A lot of times such BOF trades have a possibility of turning into TRAP trades.
PA Trader It can happen. But generally price take the path of least resistance With RN,PDC,PDL below the entry it is likely that price will move up to the next resistance BRN than breaking down. If it breaks down close that trade and go short ST
In these volatile markets, are you using SL-M orders to enter & exit or a Fix price SL order? Because price is jumping without hitting few levels. I am facing this problem, so was keen to know some solution..
Even if we miss an entry , no problem. But SL orders will create problem when price moves a hundred points in a minute. I am still using SL Limit orders. I am giving little more gap between trigger and limit.3 or 4 points. Exiting a little earlier . for example if the extreme is 6661 , I enter trigger one or two points earlier so that my order triggers earlier than other traders. SL-M orders will always get the worst execution. Exchanges always give priority to SL-Limit orders
I took my second trade today was, when its crossed 7300 BRN for the first time from todays low, i considered it as a BOF of BRN 7300 and placed SL above that red high candle, is it a valid trade?
Price did not break the BO candle low. There was no momentum to the down move If there is a LOL. Price will try to test the second layer most of the time. Further while attempting a trade against a strong euphoric trend, be very careful
Hi ST, Was there an exit below 1:30/1:33 bars? Is it a failure bar at BRN 300? It was also at DO and perhaps Body High of day at that time. Thanks for your help.
Hi ST, I have a doubt about BRN or RN. When we are in trade and price is nearing RN/BRN, what actions should we take. Do we move to a tighter sl, how should we manage trade at that point?
Trade the acceptance or rejection of levels.Price action can unfold in million ways Every occurrence is unique. It is very difficult to make clear cut rules http://niftynirvana.blogspot.in/2014/01/tug-of-war.html
Hi ST
ReplyDeleteThe large range move of Friday of 430 points created a median for Nifty and most of the stocks. The median for Nifty was 7311, just above BRN. So it was double confirmation for a short.
Similarly, the median for Tata steel (which I traded) was at 460. It went up till that point after BOF IRL/PDC. At 460 there was a BOF.
Plz Click here
The reason for mentioning about the median is that usually Median gets converted into MSP. ( The post by URD where he illustrated about TRAP)
Another reason was, last night I was wondering where would Nifty possibly give an opportunity to act after a 430 point range day. So the answer was just above BRN7300 and at median 7311. It worked like magic as if the whole trader fraternity knew it.
The beauty of DP trading never ceases to entrall me.
Thanks a lot for coming out with this method in the open.
TBP
Yes. It worked well
DeleteNice trade in Tata Steel
ST
TBP,
DeleteIn ST's method we are trading decision points that are visible to all. Since median is just a calculated number like daily pivot, and r1, r2, etc. though in this case it seems to have worked beautifully, could there have been other things at play here like in the case of Nifty the last attempt to cross 300 which was around 2:30 pm on Friday was quite visible to all?
Hi ST, today's google doodle is rubik's cube :)
ReplyDeleteNice one.
DeleteI was one among the very few who could solve this from Kerala
ST
Hi ST,
DeleteI had read about it in one of your earlier posts, today google reminded me of it. :)
Hi ST,
ReplyDeleteOne query, please have a look on the pic
http://i61.tinypic.com/54t844.png
Thanks
URD
DeleteMy stop was below the BO candle of BRN
12th candle to the left of that micro swing low.
It was acting as a MC. So I did not raise the stop.
The candle you marked was a micro TRAP it seems
ST
Hi ST,
ReplyDeleteOne query, please have a look on the pic
http://i61.tinypic.com/54t844.png
Thanks
Same one ???
DeleteST
ST,
ReplyDeleteOne query. The BOF trade that you took. Was there a possibility of it turning into a TRAP setup short? A lot of times such BOF trades have a possibility of turning into TRAP trades.
Thanks !!
PA Trader
DeleteIt can happen. But generally price take the path of least resistance
With RN,PDC,PDL below the entry it is likely that price will move up to the next resistance BRN than breaking down.
If it breaks down close that trade and go short
ST
Hallo,
ReplyDeletePDL was below 7200 I think....and today's low is 7216......am I right?
DeletePDL was 7225. I ignore tails of candles
Todays Low is 7217
ST
Sir good evening sir 16/5/2014 low was 7159/90 as per nseindia thnx
DeleteHi ST,
ReplyDeleteIn these volatile markets, are you using SL-M orders to enter & exit or a Fix price SL order? Because price is jumping without hitting few levels. I am facing this problem, so was keen to know some solution..
Thanks,
Deven Malhotra
Even if we miss an entry , no problem. But SL orders will create problem when price moves a hundred points in a minute.
DeleteI am still using SL Limit orders. I am giving little more gap between trigger and limit.3 or 4 points. Exiting a little earlier . for example if the extreme is 6661 , I enter trigger one or two points earlier so that my order triggers earlier than other traders.
SL-M orders will always get the worst execution. Exchanges always give priority to SL-Limit orders
ST
Hai ST,
ReplyDeleteI took my second trade today was, when its crossed 7300 BRN for the first time from todays low, i considered it as a BOF of BRN 7300 and placed SL above that red high candle, is it a valid trade?
Abhishek
DeletePrice did not break the BO candle low. There was no momentum to the down move
If there is a LOL. Price will try to test the second layer most of the time. Further while attempting a trade against a strong euphoric trend, be very careful
ST
Sir,
ReplyDeleteWhy didn't you short at the BOF of BRN?
S.Karthikeyan
I exited my long on BOF of BRN.
DeleteThere was no momentum to the downside. It was trading above MSP and I suspected a Barbed Wire
ST
Hi ST,
ReplyDeleteWas there an exit below 1:30/1:33 bars? Is it a failure bar at BRN 300? It was also at DO and perhaps Body High of day at that time. Thanks for your help.
DeleteI exited when price cracked the 13.30 bar low @ 13.48
Marked as TP
ST
Hi ST, thanks, sorry that was a typo on my part. I meant the 13:00/13:03 bar low.
DeleteAlso please can you tell where your initial SL was for the long entry. Thanks so much.
S Roy
DeleteMarket was strong and bullish.Just consolidating within the result day range
I expected it to break above HOD and waited with my stop below BO bar low
ST
Hi ST, awesome, thank you.
DeleteSir,
ReplyDeleteThank you very much for the guidance.
S.Karthikeyan
Sir kindly update in todays trade which one is BO candle and MSP thnx
ReplyDeleteAmber
DeleteBO candle12.48
MSP 13.24
ST
Sir good morning and thnx very much
ReplyDeleteHi ST,
ReplyDeleteI have a doubt about BRN or RN. When we are in trade and price is nearing RN/BRN, what actions should we take. Do we move to a tighter sl, how should we manage trade at that point?
Trade the acceptance or rejection of levels.Price action can unfold in million ways
DeleteEvery occurrence is unique. It is very difficult to make clear cut rules
http://niftynirvana.blogspot.in/2014/01/tug-of-war.html
ST