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

Wednesday, July 9, 2014

09072014


Nifty opened near PDL/PDC. IR formed. Short below PDL as bias was bearish. Price broke BRN but failed to continue. Covered the trade when second push down failed. As expected Nifty traded in a wide  range with PDL and BRN in between which acted as barriers. BPB od PDL short moved to LOD as expected. BOF of BRN long trade stopped out below BRN 7600

23 comments:

  1. ST Sir,

    Couldn't capture gains in today’s volatile session.

    My 1st trade went into profit of 50 points, but i missed to book.. i observed, i am turning clueless, where to place trail SL.. if there is no DP around.. this trade is one such example.. seems your exit is most logical one.. thanks for this learning!

    Stayed away, after seeing multiple false BO at PDL.

    Trades here

    ReplyDelete
    Replies
    1. You did not notice BRN 7600 and NS BRN 7600 around 7620NF
      I think you could have managed much better, if you did.
      Failure to continue beyond the earlier extreme is the first sign of weakness

      ST

      Delete
    2. NS, i havent used for trial SL so far.. but, 7600 NF.. yes i missed to notice.

      Delete
  2. Hi ST
    Price had visited both the extremes ( LOD and HOD) by 11:24. Can we consider PDL as a defunct DP once that happened? So, can we trade only the extremes neglecting PDL??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. You can trade the range extremes.
      But the DPs in between will still continue to influence price. This makes trading difficult
      You need to execute at the extreme and sit tight with the initial stop

      ST

      Delete
  3. Hi ST,

    Started with my personal trade journal here...trading-nirvana.blogspot.com..:)) all thanks to you and RM to bring some discipline in my trading .. :) no trades yesterday and today.. waiting for this Budget to get over, cant risk my budget with this :P

    ReplyDelete
  4. ST, Whats your advise for tomorrow? Should we trade? Or should we trade after the budget only?

    ReplyDelete
    Replies
    1. This method usually do not work well during such situations
      We need day traders in control and not news traders
      I will prefer to stay out till everything stabilizes

      ST

      Delete
  5. Hi ST,
    My chart,looks a lot different, especially the pivot where you exited the first trade does not exist for me. http://i.imgur.com/hGbzPKz.png The second trade my order was skipped , where did yours fill? My order was SL 7616.15 - 7615.15 As luck would have it, the third trade got filled :D wish that was skipped instead. I also took a trade below 12:06, was it totally brainless trade on my part?

    ReplyDelete
    Replies
    1. Exit the trade above BRN. Always there will be difference in charts
      7617.75-7617.25. it got filled for me.Last trade cant do anything.
      12.06 trade the space was very less at 10 points. So I skipped

      ST

      Delete
    2. Thank you ST. Is 20 points the space that you normally look for?

      Delete
    3. 20 point is ideal as we are getting 1:2 RR
      If you anticipate a lot of stop triggering
      or the trade is with the trend
      or it is a powerful BOF
      or the Dp is weak
      you can attempt even if it is very near

      ST

      Delete
  6. ST
    good evening today again i traded at PDC booked at 2nd green candle it was too fast then placed at days high it never hit then again on PDL booked after 20 points thanks ST for such nice system and simple technique.
    I am still learning this type of trade

    ReplyDelete
    Replies
    1. It may take a while to get the thought process right.
      The struggle is worth it and this will give you an enduring edge in the market
      These levels work because they are markets own levels unlike some SMA,EMA,Pivot,and Fibos

      ST

      Delete
  7. Hi ST,
    I took long trade (V shape) BOF of BRN and exited at RN. My thought process was Critical mass short and try to exit above BRN it create opposing orderflow also fluid zone and powerful DP to initiate trade. Was this valid thought process. Looking for your valuable feedback.

    Regards
    Arun

    ReplyDelete
    Replies
    1. Nothing wrong
      There was no follow up buying after it
      We cant do anything other than exiting without damage to the account
      You did it well

      ST

      Delete
  8. ST,

    Just curious to know, is the RN a powerful DP coz now we have strikes at those levels too ? or any other factor ?

    GK

    ReplyDelete
    Replies
    1. I was only looking at BRN earlier
      After the introduction of xx50 option strikes these levels have increased prominence
      Usually I look at RN for trade management only. Not for entries
      But you can consider these levels if they establish as range extremes like today

      ST

      Delete
    2. You mean to say, when they are also nearer to other DP's they make more logical ?? like RN/PDL RN/PDH, RN/PDC etc ??

      Delete
    3. Yes. A confluence of many factors make the levels more prominent

      ST

      Delete
  9. ST, Can you please explain the reasoning behind taking your second trade, the BPB of PDL? Price was rotating around the PDL. Infact there was a similar BPB opportunity at around 12 PM, which didnt work. But the one you took , worked. I wanted to understand the difference between the two situations. Thanks

    ReplyDelete
    Replies
    1. PA Trader
      Signal wise there is no difference between the two
      Price tried to move above 7650 for the third time. Bias was bearish
      So I expected a move towards LOD and if lucky further by market close. If price fails to do something repeatedly and fails , you can expect it to do the opposite at least for a while.Here you can very well short the TST of HOD with a very low risk. But psychologically it is difficult. Hence waited for the break of PDL

      ST

      Delete

Note: Only a member of this blog may post a comment.