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

Tuesday, August 19, 2014

19082014


Nifty gaped up above PDH/BRN and traded in a 20 point range the whole day. Attempted two long trades.BPB of BRN and BPB of Range High. Both the trades failed immediately on entry.

13 comments:

  1. Hi ST,
    2nd trade can this be taken as pressure play? Considering BOF of IRL . Though this was with trend ?

    ReplyDelete
  2. To add to my previous comment: thought process is :
    Lot of shorts are trapped because of BOF of IRL ( 3 tests). Could be traded for PP on top of DH.

    ReplyDelete
    Replies
    1. We can try a long. But stop triggering alone will not make a move
      There should be follow up buying and today it was not coming

      ST

      Delete
    2. Hi ST,
      "There should be follow up buying and today it was not coming"
      --> Not clear what you mean by this. For a breakout how do you look follow up trade. Won't this be too late ?

      Delete
    3. Stop loss triggering alone cant make a move. There should be fresh buying or selling from momentum traders in the same direction. We will know this only on hindsight. The BO will fail if there is no follow up

      ST

      Delete
  3. Hi ST,

    can 11.40 high can be MSP and failure of second BPB as short ?

    Regards

    ReplyDelete
    Replies
    1. MSP is relevant only on a trend move, not in a tight range
      MSP crack means the last impulse is failing to make a consolidation range and likely to be a price reversal
      Failure of second BPB is a short signal. It is BOF of Range high
      This bounced back from BRN

      ST

      Delete
  4. Hi ST,
    Did you think about taking a BOF of IRL/BRN?
    And if so what were your reasons for not entering? Thanks.

    ReplyDelete
    Replies
    1. Price enveloped the IR and made a barbed wire around BRN
      Trade this new range and not the mid points
      http://niftynirvana.blogspot.in/2012/10/brackets-and-envelops.html
      http://niftynirvana.blogspot.in/2012/06/barbed-wire.html

      ST

      Delete
  5. Hello Sir,

    Thanks for posting your charts from the battle field which have immense educational value unlike teaching gurus who never trade themselves.

    I have a question regarding overall price action philosophy.
    If I generate a random price chart, a price action trader usually can't tell its a random chart but can come up with a coherant price action story for the chart (eg: BOF happened here, trend line got broken there etc etc.).

    Is randomness fooling PA trader in this case? or PA is the absolute truth which works well for both random data or real chart?

    I understand traders trade to make money not necessarily to ponder on philosophy.
    'If it makes money shut up and use it' is very practical mindset but I would love to hear from you.

    ReplyDelete
    Replies
    1. Most of the time price moves in the markets are random and will not give a trading edge
      All the Technical analysis including price action trading is an attempt to identify a location and direction of non random moves that can happen in markets. Traders try to exploit this edge and make money. IMHO , DP method has an edge and it works reasonably well.
      There are no absolute truths in markets. If somebody finds it out, he will own this planet earth in no time

      ST

      Delete

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