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

Monday, November 17, 2014

17112014


Nifty gaped down below PDC. IR formed. Price broke IRL and found support at PDL. There was a BOF at PDL. Avoided lond as it was a minor one and IRL was very near. Went long on BPB of IRL. Then it was just trailing till 8460. Both Nifty and NaMo were firing on all cylinders.
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37 comments:

  1. TrekkieNovember 17, 2014 at 3:45 PM

    Hi ST,
    I took long above 10:48 congestion on break of IRL, I guess that was wrong entry, but luckily was able to hold on, got out around 52. Did you exit below round number xx60?

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 7:41 PM

      Exit was around xx60 as Nifty moved almost 100 points from the bottom made

      ST

      Delete
  2. DMNovember 17, 2014 at 3:50 PM

    ST,
    1. Trade did not move for more than an hour after entry. Why did you hold on? Did you consider scratching the trade?
    2. Where was your stop at entry and how did you move it?
    Thx,

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 7:50 PM

      Price never came below IRL and risk was around 8 points. I accepted the risk and stayed with it
      Entry was at 8387 and physical stop at 8379. It was trailed behind swing lows

      ST

      Delete
  3. Vikram Bahadur SinghNovember 17, 2014 at 3:53 PM

    Excellent trade. Just one trade and that hit jackpot :)

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 7:51 PM

      After the initial fall, it was just trending
      There was no confusion at all

      ST

      Delete
  4. ArvindNovember 17, 2014 at 4:02 PM

    Hi Sir,
    My trade.
    http://screencast.com/t/cm3JoQvhayR

    Sir, at the time when you went long , what was your initial stop and target.
    After your entry , there was no momentum , how did you manage that. I mean what is your thought process for the next one hour.

    Thanks

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 7:53 PM

      Entry at 8387 and stop at 8379
      Trade never got invalidated and price traded above IRL
      FTA was IRH for the trade . so I waited

      ST

      Delete
  5. UnknownNovember 17, 2014 at 4:18 PM

    Thanks ST for the charts...

    ReplyDelete
  6. UnknownNovember 17, 2014 at 4:38 PM

    Hyi ST,

    While considering PDL did you only consider the close of that candle (you didnt consider the spike ?) because the PDL line that you have drawn in todays chart it would not touch that breakout candle if you consider the spike.

    http://tinypic.com/r/vmtyqg/8

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 7:56 PM

      I ignore tails usually. Tails are considered on BO type of entries only

      ST

      Delete
  7. L.V.GandhiNovember 17, 2014 at 5:34 PM

    PDL was 8368.25. You have mentioned , it was BOF PDL and IRL. Can you clarify?
    Further there was deep red candle at 13:12 from 8390 as FTC. You did not exit even below that. Can you please share your thought process.
    I tried long above BRN and IRH ie 8409.25 limit and 8409.75. Price jumped to 8415 and missed the trade. In that case what should have been done by me?

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 8:13 PM

      I ignore tails while drawing levels. These areas are zones, not exact levels
      There was a BOF of the earlier swing extreme. I did not enter here as it was insignificant and did not trap many
      Scratching below the red bar means exiting at 8383 level. My stop was at 8379.Here extra risk was 4 points.
      What is the point in exiting a valid position with a risk of 4 point and looking for another with 10 point risk?
      It was bad luck.BO kind of entries jumps over the order. Sometimes it happens.

      ST

      Delete
    2. UnknownNovember 18, 2014 at 6:34 AM

      Hi ST,

      I have query on you reply. "BO kind of entries jumps over the order. Sometimes it happens. " Even the stop loss buy order will be skipped?.

      Thanks,
      Aris

      Delete
    3. SMART TraderNovember 18, 2014 at 11:12 AM

      It can happen. But rarely
      Under the method, your exits rarely come at such locations

      ST

      Delete
  8. NagendraNovember 17, 2014 at 6:45 PM

    Dear ST,
    Market moved IRH to PDL within the structure.You got nice trade. why you are not exited in between PDC and PDH. trend slowed there. and why you are not considered gap down as bearish sentiment ? you entered trade is a counter trend ?
    Thanks,
    Nagendra.

    ReplyDelete
    Replies
    1. SMART TraderNovember 17, 2014 at 8:20 PM

      There was no confusion between PDC and PDL. It was just trailing.There was a confusion above PDH where a two legged pullback happened. Once price climbed back to IR sentiment changed. Price moving back to a higher range and breaking a DP to the higher side changes the bias. Kindly go through the important posts regarding trend and bias

      ST

      Delete
  9. SMART TraderNovember 17, 2014 at 8:33 PM

    Steve Burns of New trader U has reproduced one of my blog posts in his site.
    http://newtraderu.com/2014/11/14/guest-post-drug-your-trading/
    Steve is a well know trader and trading educator with 18K followers on Twitter
    I encourage to check his site frequently

    ST

    ReplyDelete
    Replies
    1. TrekkieNovember 17, 2014 at 9:47 PM

      Thank you ST. Nice post!

      Thank you again for being such a great teacher and coach, the clarity with which you teach us concepts is out of this world. Without you most of what Ziad said in that seminar would have made no sense to me whatsoever.

      Delete
    2. Homer_23November 18, 2014 at 3:24 AM

      I read the article. It was good, thank you.
      I very recently started to follow your blog and read the book decision points as well. I truely appreciate your drive to help fellow traders.

      Delete
  10. tRaDeR_BNovember 17, 2014 at 8:52 PM

    Congrats ST..

    Yes he is widely followed in Twitter and a great guy.I personally follow him...

    http://www.optionstradingiq.com/top-25-traders-on-twitter-2014-edition/

    ReplyDelete
  11. Trader PaiNovember 17, 2014 at 9:45 PM

    Hi st
    Thanks
    Where can I download historical intraday data for amibroker bar replay

    Rgds
    Kishore

    ReplyDelete
    Replies
    1. SMART TraderNovember 18, 2014 at 11:08 AM

      There a few threads about it in Traderji and Inditraders
      I no longer do it

      ST

      Delete
    2. TrekkieNovember 18, 2014 at 11:16 AM

      Here's the link to the traderji data thread http://www.traderji.com/intraday/95401-nse-futures-1min-ieod-data.html It has many years of good data.

      Delete
    3. Trader PaiNovember 18, 2014 at 11:57 AM

      Thanks ST and Roy

      rgds
      Kishore

      Delete
    4. tRaDeR_BNovember 18, 2014 at 4:33 PM

      Kishore,

      You can get 1 min format data for NIFTY & BANKNIFTY(both spot and futures ) from the below link.It has data from 2008.Courtesy some good soul who updates the data daily at EOD. :)

      https://docs.google.com/folderview?id=0B8e3dtbFwQWUZ1I5dklCMmE5M2M

      Delete
  12. BhavirNovember 18, 2014 at 1:47 AM

    Thanks for posting ST!
    Here's is my reading of the market
    http://niftytradediary.wordpress.com/2014/11/18/17-nov-2014/

    I used 8382 as initial SL for the BPB of IRL trade. Perhaps too close .. but chose just below the pull back low. What was your reasoning for xx79.5?

    ReplyDelete
  13. Homer_23November 18, 2014 at 3:22 AM

    Thank you, the mentioned post regarding trend and bias, which month would that be? It would be treat if you share the link. Thank you Sir.

    ReplyDelete
    Replies
    1. SMART TraderNovember 18, 2014 at 11:11 AM

      Check the links below the blog
      Check posts under Structure and patters
      You can download them in E-Book format also

      ST

      Delete
  14. TrekkieNovember 18, 2014 at 8:35 AM

    Hi ST,
    I have a hypothetical question related to DPs and BPB. If using today as an example let's say we are looking for a pullback below PDL to short. If we ignore tails PDL was at 72, if we take tails into account PDL was at 68. Should we wait for pull back below 68 or wait for pull back below 72? What if the distance between tail and body was more, would we think differently then? Thanks for your help.

    ReplyDelete
    Replies
    1. SMART TraderNovember 18, 2014 at 11:46 AM

      If tail end is too far , enter on today's extreme.
      If it is 3-4 points enter on break of the tail extreme
      SL of day traders will be always at the days extreme

      ST

      Delete
  15. SMART TraderNovember 18, 2014 at 11:38 AM

    Bhavir

    http://screencast.com/t/QDddAYMXOz

    ST

    ReplyDelete
    Replies
    1. BhavirNovember 19, 2014 at 1:09 AM

      Thanks Sir. Got it. I just got lucky to not be stopped out of the nice up move.
      I would have been a disaster to see market move without me :)

      Delete
  16. TrekkieNovember 18, 2014 at 12:51 PM

    Hi ST,
    Is today's move cigarette?

    ReplyDelete
    Replies
    1. SMART TraderNovember 18, 2014 at 12:59 PM

      Yes. Yesterday last impulse acting as a tight range

      ST

      Delete

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