This is an illustrative example of the
concepts being discussed.Markings are just visualizations on historical
data in hindsight analysis
Nifty opened within previous day range. long on BOF of PDL/PDC. TP when it failed to stay above BRN. A short of BOF of BRN did not move and trade got stopped out. Next TST was a good opportunity, but missed. Shorted the break below PDL. But could not capture the full move. Did not attempt the BOF of LOD
Nifty opened within previous day range. long on BOF of PDL/PDC. TP when it failed to stay above BRN. A short of BOF of BRN did not move and trade got stopped out. Next TST was a good opportunity, but missed. Shorted the break below PDL. But could not capture the full move. Did not attempt the BOF of LOD
Thanks for the chart ST
ReplyDeleteTBP
ST,
ReplyDeleteI Didnt understand your first long trade without confirmation and against trend. The 10.15 bar was long legged doji and 10.18 bar also have wick above. so not a strong rejection . it took three bar to move above 10.12 breakdown bar.. what made to to take counter trend trade on weak signals. i missed it completely.
Secondly . What made you take 3rd trade short . near morning range low. and the down move already coming from 8800. dont we expect failure there to take longs?I also missed this trade too.
Thanks and Regards
Bharat
After a trend day price usually will consolidate within the last impulse for a while
DeleteThen it may break down or reverse. On 05032015 same thing happened. BOF itself was the confirmation. I was not confident to take a blind entry. Price tested the bottom thrice and the fourth attempt also failed
Momentum moves usually will have two legs. Price was entering a new area and expected some stops below then LOD
ST
Sir
DeleteIt is regarding "Momentum moves usually will have two legs." Today there was a momentum move from the top with one leg of the momentum move from 8781 to 8737, and second leg from 8763 to 8727. Is my understanding correct?
URD
Yes. But we cannot capture these kind of moves.
DeleteIdeally the fist leg should cross a DP and pull back need to stall at this DP. Look for a TST/BPB short
Alternatively it can bounce a little from a DP and second leg runs breaking DP and early extreme. Look for a BO
In type 2 always there is a danger of reading this as a BOF. So wait for confirmation before going for a reversal trade against a momentum move
Today market is not respecting levels well. despite the sell off in Dow market is holding but choppy. Current up move is not respecting flips. I wonder what will happen at HOD
ST
Sir,
DeleteThanks for it. But can't we use this information to our benefit while managing the trade?
URD
Sure. The defined structure of a trader cant accommodate or explain every move that can happen
DeleteSo we need to stick to our own frame work and attempt only those fits our plan. We will always miss more moves that we can capture
ST
ST
ReplyDeletemy first trade was same as of you but short trade i could not initiated even prev day close BOF last long system rejected my long at 8726 how i will improve my thought process please guide
Nothing more to learn. keep practicing
Deletehttp://jamesclear.com/learning-vs-practicing
ST
Sir
DeleteThat is a very good article. Very well explained, the importance of practicing. I can correlate it. Thanks for it.
URD
URD
DeleteI am a fan of James Clear.
My E-Book was the result of his challenge. AFAIK , I am the only person did it among his readers
http://jamesclear.com/writer-challenge-2013
ST
Sir,
DeleteAnd that E-book was a gem. Congratulations for the achievement. You always have been an inspiration for me.
URD
Thank you sir for this nice reference. That blog seems to be really great resource.
Deletethere is good short opportunity near TST area .why didn't you attempt short there ?
ReplyDeleteI hesitated as my earlier short failed
DeleteST
Dear ST
ReplyDeleteThanks for the chart.
Question: Do you draw all lines like PDL, PDC, PDH, DO, RN & BRN on chart every day morning.
Thanks
Raju
I wont draw it full. But will mark them all with small lines a little left to the current candle
DeleteST
ST,
ReplyDeleteFor your 1st trade ... where you marked TP, why its not a pull back of BO BRN but TP ?
It was a CT trade and when it broke the swing low I exited
DeleteST
Thanks for the Chart ST Sir.
ReplyDeletehow to confirm about the LOD? is that confirmed by , the price is already down about 100 points and 2nd time TST at 8720 area strongly rejected?
Neethi
Real LOD cannot be confirmed till the end. Actually it happens as a FTC
DeleteThat is a BOF of price extreme after an extended move. Trades are kind of blind ones
ST
Hi st,
DeleteWhy didnt u mark irh today
I didn't take your second trade because of irh
Kishore
10.30 up move enveloped it. Then focus on the new extremes
DeleteST
Hi ST, for the last short, what made you choose entry below 1:21 bar instead of below 1:24 bar or 1:15 bar . Thanks for your help.
ReplyDeleteI wanted the price to fall below PDL.FTA was RN and wanted an early entry to ensure some space
DeleteI thought a few stops below 1.21, the pullback low after the bounce will take price a little further to trigger stops below 1.15
ST
Hi ST,
DeleteWould you please post the possible trades and exits for 9th? Thanks.
Will do later
DeleteST
Good morning ST. reminder :)
Deletehttp://screencast.com/t/SbUuqP3zG2TL
DeleteST
thank you so much ST.
Delete