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

Tuesday, February 24, 2015

24022015


This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
As expected the last impulse of the previous day acted as a range. RN and NS RN was in between the range.RN acted as IRL Hesitated and missed the BOF of range high. Could not capture the BO also. Price moved up and gave a BOF of BRN. Went short there. Covered when price gave a BOF at LOD/Range low

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19 comments:

  1. xrtrader1February 24, 2015 at 4:20 PM

    Hi ST,
    What was the thought process to Miss BPB at 13:30 ? Only Space ?

    ReplyDelete
    Replies
    1. SMART TraderFebruary 24, 2015 at 4:41 PM

      Logical entry and stop were above and below pull back bar. 13.24
      RR was not favorable. CM and fluid was in favour.
      Overall it was an entry worth taking,but I hesitated. If I took it I would have missed the short most probably

      ST

      Delete
    2. kishoreFebruary 24, 2015 at 4:44 PM

      I took the BO but stopped out at the very next bar below BO bar .
      I should have kept SL below IRH
      thanks
      Kishore

      Delete
    3. SMART TraderFebruary 24, 2015 at 5:05 PM

      Range BO against trend moves approximately the same distance of the range
      A 20 point range BO moves another 20 point and consolidate. traders call this measured moves
      The idea is that different legs of a price move will be roughly the same length. Google it

      ST

      Delete
  2. kishoreFebruary 24, 2015 at 4:37 PM

    Hi ST,
    My order for the BOF BRN didnt get filled .

    thanks n rgds
    Kishore

    ReplyDelete
    Replies
    1. kishoreFebruary 24, 2015 at 4:45 PM

      placed at 8789.90 and 8789

      thanks n rgds
      Kishore

      Delete
    2. SMART TraderFebruary 24, 2015 at 4:54 PM

      Sometimes it happens. I entered with a SL-M and it filled with 4 point slip

      ST

      Delete
    3. smartthingsaroundmeFebruary 24, 2015 at 5:00 PM

      Hi ST sir,

      What was your thought process behind entering on the second BOF of BRN. Why did you not enter the first time. Is it that you were waiting to enter below the low of the TST bar @13.30

      Thanks
      Vivek

      Delete
    4. SMART TraderFebruary 24, 2015 at 5:09 PM

      Taking CT trades wait for confirmation. Let price come below DP and pull back. short below this swing point

      ST

      Delete
  3. BharatFebruary 24, 2015 at 6:20 PM

    ST,

    Where would you exited if took the first Breakout faiure trade 10.39?

    Wasnt there a short for you for FTC at IRH.. I m still confuse with considering NS RN and RN as dp. kindly enlighten.

    Why not exit at 14.33 bar high but exited at 14.45? ideal sl wouldnt be above 14.36 or 14.39 for the exit?

    Thanks and Regards

    Bharat

    ReplyDelete
    Replies
    1. SMART TraderFebruary 24, 2015 at 8:06 PM

      Exit will be at pullback high/above RN
      I do not consider NS RN or RN as DP unless they establish as range extremes. Reason is simple.xx50 option strike attract very less volume and OI than xx00 options. Naturally they are weaker levels
      Position is held hoping a move below PDL. When price came back and closed above PDL and nearest round number 8740, exited. Price very rarely moves more than three legs without a consolidation and stays in rally or decline mode for more than 9 candles continuously. There are no certainties. But if this happens at a DP, it is time to look for an exit

      ST

      Delete
  4. kishoreFebruary 24, 2015 at 7:46 PM

    Hi ST,
    Do you think trading requires intuition ?

    thanks n rgds
    Kishore

    ReplyDelete
    Replies
    1. SMART TraderFebruary 24, 2015 at 8:23 PM

      Yes. Intuition is subconscious data processing.It is automaticity
      http://niftynirvana.blogspot.in/2012/05/automaticity.html
      This automaticity can only be developed by doing the task for a long time focusing on the right things
      http://niftynirvana.blogspot.in/2012/02/chicken-sexing.html

      ST

      Delete
    2. kishoreFebruary 24, 2015 at 8:28 PM

      Hi ST,
      Just curious .
      Do you believe in astrology and intuition as in occult science ?

      thanks n rdgs
      Kishore

      Delete
    3. SMART TraderFebruary 24, 2015 at 9:48 PM

      No. I have no beliefs in Astrology and the like

      ST

      Delete
  5. Sanjoy Kumar RoyFebruary 24, 2015 at 11:15 PM

    Dear Niranjanam,

    I paper traded 4 trades today. Request your inputs.

    Trade 1 - @11:26 bought 2 lots @ 8752.75. BOF of IRL. @ 11:45 Weak market. SL moved to 8760 for Capital Protection. SL hit @ 12:04

    Trade 2 - Bought 2 lots @ 13:11 @ 8751 above RN, when TST of IRL/PDC. Booked 1 lot @ 8780. SL of 2nd moved to 8769. booked 2nd lot @ 8785 when saw the price coming down for capital protection.

    Trade 3 - Sold 2 lots @ 14:13 @ 8780 as market came down quickly below IRH. Booked 1 lot @ 8752. SL of 2nd moved to 8762. booked 2nd lot @ 8738 BO of LOD.

    Trade 4 - Bought 2 lots @ BO of IRL @ 14:50. Booked 1 lot @ 8780. SL of 2nd moved to 8762. booked 2nd lot @ 8780 near end of day.


    ReplyDelete

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