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

Monday, August 25, 2014

25082014


Nifty opened below PDH and moved up. Long on BPB of PDH. The deep pullback hit my stop. Could not get any reliable signal to enter long again . Went short on the BOF of range high/HOD. This moved well Trailed till PDL and exited. Market has not forgotten how to fall.
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26 comments:

  1. UnknownAugust 25, 2014 at 4:06 PM

    Hi ST
    Indeed markets has not forgotten how to fall. 8k proved touch me not.

    Thanks
    TBP

    ReplyDelete
  2. RAVIAugust 25, 2014 at 4:17 PM

    Hi ST!

    Have a query here.. please clear my doubt [IMG]http://i60.tinypic.com/9k9w86.png[/IMG]

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 4:33 PM

      Every new swing high in an uptrend will not qualify as HOD. To attempt a counter trend trade BOF should be at a DP.
      Only a well established range extreme qualify as a DP. Look at what happened at the first trade. We cannot consider 7950 as HOD and initiate a short where I marked TP. It is not a BOF of HOD but a deep pull back

      ST

      Delete
    2. UnknownAugust 25, 2014 at 7:05 PM

      Sir, not understood clearly.. Please clear my point once again. Where u taken BOF, why that is not considered as swing high? Whats difference between both??

      Thanks!

      Delete
    3. SMART TraderAugust 25, 2014 at 8:01 PM

      Yes it was a swing high. I did not tell it was not a swing high
      It was just a swing high.Later after two more tests it became a Range high
      Skipped the BOF of the swing high and entered on BOF of Range high
      A swing high qualifies as a range high after multiple tests
      We trade DPs . A swing High is not a DP where as a range High qualify as a DP

      ST

      Delete
    4. UnknownAugust 25, 2014 at 8:04 PM

      Thanks sir!

      Delete
  3. UnknownAugust 25, 2014 at 4:29 PM

    Hi St Sir U Rock Today
    http://i.imgur.com/fMoAapU.jpg

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 4:56 PM

      That time it was not an established range high. It was just a swing high.
      BO failure of a swing high is not a short signal. We are trading decision Points not swing highs and lows
      Only an established range extreme qualifies as a DP especially for counter trend trades. In with the trend trade you can attempt a BOF of swing point. It is a TRAP pattern

      Delete
  4. AAugust 25, 2014 at 4:52 PM

    Hi ST Sir,

    Bias bullish and space was very less regarding last trade which i hesitated and missed the move.kindly clarify what are the other things to note when taking counter trend trade like this. Thanks in advance.

    Regards
    Arun

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 5:10 PM

      There is no guarantee that the trade will move.Target is always the range low.
      Upward momentum was lacking and the BOF rejection was strong at the multi test range high.
      Such strong BOF trades will move at least some points in our favour before reversing and will give us a chance to exit without much damage if it is not working.

      ST

      Delete
  5. goodidea.vishalAugust 25, 2014 at 5:41 PM

    Hi ST sir ,
    Last trend is CT trade ....i think there is range and its range high failure ....then target for that trade is range low ??? ...
    If yes ,then range low is only 10 point below ...and its our FTA .
    how can manage it . please throw some light on it
    please share your thought process on last trade .

    thank you

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 8:32 PM

      If market is not moving as you expected exit the trade without damage.
      Do not hang on. If you have taken the earlier trade ,market gave 9 minutes to get out without loss. One hour to avoid a full stop out.You will be able to manage the final BOF the same way
      http://screencast.com/t/pvGnXxtWvW

      ST

      Delete
    2. SuMaAugust 25, 2014 at 10:05 PM

      Thanks a lot ST Sir. You take a lot of pain to answer our queries. Thanks a lot.

      Delete
    3. goodidea.vishalAugust 25, 2014 at 10:19 PM

      Thank you sir , your chart teach me each and every doubt clear ,its really helpful for me

      thak you sir

      Delete
    4. SuMaAugust 25, 2014 at 10:22 PM

      This comment has been removed by the author.

      Delete
  6. xrtrader1August 25, 2014 at 5:46 PM

    Thanks ST.

    ReplyDelete
  7. UnknownAugust 25, 2014 at 6:08 PM

    St sir ji 19th August 2014 chart same Situation in Range high
    not clear this long

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 8:36 PM

      On 19th a BPB triggered and the signal failed
      It was a pattern failure. Patterns will not work 100% of the time

      ST

      Delete
  8. amberAugust 25, 2014 at 6:31 PM

    Sir good evening ,sir sent a mail when time permits kindly check thnx

    ReplyDelete
  9. ArvindAugust 25, 2014 at 7:08 PM

    Hi Sir.
    In your second trade when the price reached at PDH ,there was strong pull back in the form of pin par,which gave the sense of BOF of PDH. I took profit there. The pin bar scared me.
    Can you please tell me , what was your thought process in that zone.

    Thanks in advance.
    Arvind

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 8:39 PM

      Market was falling after a long long time.
      So I decided to trail and extract the maximum

      ST

      Delete
  10. videvAugust 25, 2014 at 9:36 PM

    I was focused on taking profits on long exactly around BOF short level ... and happy to make some points and develop skill... so even though I saw the break below 7970 NF as trapping of longs, didn't take the short being CT and didn't expect the short trade to move so much either in an uptrend day till that time.

    Your explanation of swing high vs range high is very clear. Traders got trapped on such a day when the last push above 7970-75 levels came and suddenly reversed trapping the late long traders. That zone between 7960-70 was being watched for about 2 hours by many (including me) and I raised TSL from 7959.x to 7967.x once it broke above 7970-75. At least I could protect some profits.

    ReplyDelete
    Replies
    1. SMART TraderAugust 25, 2014 at 10:44 PM

      Totally avoiding CT trades is not advisable.
      We may miss many fast and furious moves.But must be careful with them
      Holding and hoping will not work here

      ST

      Delete
  11. TarakAugust 26, 2014 at 9:31 AM

    Dear Sir ST,

    Do you have real time postings / service as well?

    thanks,Tarak

    ReplyDelete

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