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

Tuesday, September 30, 2014

30092014


Nifty Opened within previous day range. Did not trade the morning session due to RBI announcement. Missed the up move as I could not get a good entry. Went short on FTC of HOD which moved well. TP near BRN when price bounced from LOD/PDL. Second BOF of PDL @2.40 was a good opportunity to make quick 20 points. Missed it

29 comments:

  1. Hi ST,
    Was the FTC only reason for the trade ?
    Wasnt that a CT trade ?
    Did you weigh the fluid below ?

    thanks n rgds
    Kishore

    ReplyDelete
  2. It was a CT trade.
    Critical mass was long. Then there was a TRAP pattern. After the TRAP, price made a pivot. BO of this pivot could not take the price beyond HOD. The below area was a fluid. I expected enough stop triggering to break RN area and reach up to PDH. It was a clear buying exhaustion. There was nothing to cheer about in the RBI policy also

    ST

    ReplyDelete
  3. Sir,
    i m trading NF last 7days. i m following DP method. i have practiced this successfully in paper trade past 4 months.but, when i executed in online trading ,i cant trade properly. i mistook so many times. pls guide me sir.

    ReplyDelete
  4. sir,
    today i missed the down move. but successfully wrote in paper trade. why this hesitation?

    ReplyDelete
    Replies
    1. Trading is something you learn by doing. Hesitation will be there always. This is because our mind cant tolerate uncertainty. Trading is always uncertain and ambiguous.As you gain experience this will improve,but will never go away

      ST

      Delete
  5. Hi ST,
    Wasnt there an oppurtunity to go long as BPB of PDC?

    rgds
    Kishore

    ReplyDelete
    Replies
    1. Yes. But I was a little confused where to enter because of that big bar with upper tails which made a BOF of PDH
      Then waited for BPB at PDH. But Nifty ran away

      ST

      Delete
  6. Hi ST,

    1) How do you manage BO trading, most of the time price move like a rocket. I was waiting to short below pivot but i could not catch.
    2) where was the right exit for BOF of PDL? i took short at 7980 (below previous price consolidation), but price bounce from the low of the day and i can only exit at cost.

    Thank you,
    Kiran.

    ReplyDelete
  7. After the second attempt to go above 8080 failed, Price was falling
    Next five candles made lower lows before breaking the pivot low.
    15 minutes not enough for you to feed a SL-Limit order below the pivot?
    Exit at the range high if you enter on BOF of range low.Do not sell after a lot of selling has taken place

    ST

    ReplyDelete
    Replies
    1. Going forward i will feed SL-limit order, usually i am not comfortable to keep SL-limit order .I think that is causing me a worry.
      According to you, for the second trade where was the right entry and exit? or there was no trade at all


      Thank you,
      Kiran.

      Delete
    2. Entry is on break of the BO candle.
      Treat it as a Sniper shot to PDC

      ST

      Delete
  8. I took long as TST of PDC at 1203 candle, it seemed too deep a pullback to me to call it as BPB of PDC. Then I exited at my target PDH which seemed much too early exit in hindsight. I also thought of the RBI 11 am candle high as another range top which was taken out on high volume and then it shifted into new range PDC to PDH, though it was not very clean looking.

    Was that a right trade as TST of PDC?

    ReplyDelete
    Replies
    1. Why not?
      Price is getting accepted above PDC. Keep SL below PDC
      How far it will go up , how long it will move up etc no body knows
      Manage it as good as you can and let your profits run

      ST

      Delete
  9. Also, I have one doubt about validity of BRN DP. In morning session before and after RBI policy, prices somewhat chopped on both sides of BRN. Would that make it a barbed wire around BRN? If yes, then in afternoon session would it make the BRN as a weak or insignificant as DP, so we can just ignore it?

    ReplyDelete
    Replies
    1. Yes. BRN has become less significant with this BW
      The range high is the LOL level of PDC and previous day final move high
      Mid level will have some influence always especially BRN. But they become less significant

      ST

      Delete
  10. Thanks ST.. Only now I noticed the final move high and that it was LOL with PDC.

    ReplyDelete
  11. ST
    Please comment on my trades
    http://tradingdecisionpoints.blogspot.com/2014/09/3092014.html

    rgds
    Kishore

    ReplyDelete
    Replies
    1. Please make the blog wider and post bigger charts
      In fact after the first trade price never fell below PDC. But that big tailed bar created panic
      Otherwise it was a good trade.Last one came late and after two big directional moves we can only expect a move till PDC, the range high due to short covering

      ST

      Delete
  12. http://nseindia.com/content/circulars/FAOP27733.pdf

    ReplyDelete
  13. Dear ST,
    Today I took short below 3 low closing bar congestion at 12:45 and also below the low of 12:45 bar at 13:09 bar. Both were at loss. You have noted that as Trap Pattern. Can you please explain how to recognize and avoid like these in future.

    ReplyDelete
    Replies
    1. After a directional momentum move ,market rarely take a V reversal. Most of the time it consolidates in a range or resume the trend after a CPB. TRAP is nothing but a Complex Pull Back, a multi leg pull back.While attempting CT trades there is a chance of getting trapped in a CPB. So generally I will look for a CPB and later short below this CPB low if market do not resume the trend.
      http://yourtradingcoach.com/trading-process-and-strategy/if-i-wanted-to-limit-myself-to-one-setup-only/

      ST

      Delete
  14. daily is in rally? decline? sideways? confusion(chop)?

    ReplyDelete
    Replies
    1. Yesterday it was an engulfing. Neutral. Nifty can move both way
      Previous day final up move can act as a range. Break of this range will decide the direction.
      The fluid above is mouth watering. I dont expect strong commitment due to the long holidays

      ST

      Delete
    2. ST,
      Would positional shorts cover because of holidays or will they hold or would they have already covered?

      Delete
    3. I dont expect any big moves today. Short BOF of range High/BRN now

      ST

      Delete

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