Nifty gaped down below PDH. IR formed. Skipped the BO of IRL as Nifty has already down 50 points from PDC. Short on BOF of range high.Covered when price bounced at range low after a BOF. Another short on BPB of range low . Target was BRN. But had to scratch this trade as price bounced. No other trades.
Hi ST
ReplyDeleteWas there any way to hold on to the short which you took instead of covering it when price bounced?
Thanks
TBP
I held it for 15 minutes. Covered as it was holding above the range low
DeleteIt fell as soon as I covered.I would have held it longer if it was just a TST
ST
Hi ST,
ReplyDeleteShort below IRL @ 9.35 is valid trade?
Regards
Naveen
It is a valid signal and valid entry pattern. Not a quality trade
DeleteAll patterns are not tradeable. We need to consider other factors like TRADE SCORE
After a 30 point gap down and 20 point down move we cannot expect further move without some consolidation. That too into NS BRN 8100.So avoided it.Mechanically trading the three patterns at DPs may not work well
ST
I was tempted to take trade at BOF but thought of strong pullback from RL prevented me taking trade. Also RL was only 15 points away.
ReplyDeleteYou have to consider the risk also.
DeleteIf you are going short around 8140, you can keep your SL very safely above the BO extreme,DO/HOD and RN 8150
That is three layers of defense. That too a trend trade.Take a chance. You wont win unless you bet
ST
Hi ST .. thanks for sharing this and putting together decision points ebook. I have recently started studying this technique and paper trading.
ReplyDelete1) I had the same trade as your first today with closing position at same level i.e. 8133 .. reason was second push below NS BRN failed and NF took out swing high
2) Guess I am too new to take the BPB trade you've marked
3) 2nd trade could have been buy @ 8130 after strong bounce back (initial stop @ 8120, previous bar high) - revised stop swing low 8132 - break even trade (only suspect in this trade was NS was still below / around BRN)
4) Based on my observations so far - I think a multiple position technique with half position to be taken out after fixed 10 point profit in NF would perform excellent over a long haul using decision points.
Please add or correct my understanding.
Thanks,
Bhavir,
Once we achieve execution consistency we can try different tactics with multiple lots
DeleteWe can trade the method with option contracts also. Till then better to focus on basics
ST