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

Thursday, April 16, 2015

16042015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Nifty opened near PDL and drifted down. Shorted below PDL. Price did not move as expected . covered at 8728.TST Sell order at 8740 did not execute and missed the down move. BOF of BRN did not work . Stopped out. Did not attempt any other trades.
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18 comments:

  1. AnonymousApril 16, 2015 at 4:56 PM

    Welcome back sir. You were missed.

    ReplyDelete
  2. SpacemanSpiffApril 16, 2015 at 5:12 PM

    Hello, welcome back
    Looking forward towards post on TST trades whenever you get free time.
    1) What gave you confidence that 8740 will hold. There was a minor Fluid above and the level was tested few times.
    2) where was the initial SL for BOF.
    thanks

    ReplyDelete
    Replies
    1. SMART TraderApril 18, 2015 at 10:52 AM

      No guarantee that the level will hold. Bias was down and there was also RN above it. If it moved above the earlier swing high stop triggering may take it to PDL.
      Logical SL is a little below the DP, here the BRN. Try to enter close to the level and keep SL a little far on the other side. No other way. for example, long at 8702 with a SL at 8692

      ST

      Delete
  3. sqlfixApril 16, 2015 at 5:27 PM

    Hi Sir, Welcome Back :-)
    For your first order how did you made an entry as the price moved down quickly.
    Did you placed a stop loss order before for sell for entering short.

    ReplyDelete
    Replies
    1. SMART TraderApril 18, 2015 at 10:54 AM

      All such entries are with SL orders. We need to anticipate the break and enter an order in advance

      ST

      Delete
  4. BharatApril 16, 2015 at 6:34 PM

    ST,

    Welcome Back.:)

    You didnt expected range bound actiion. after yesterdays strong 100 point fall and wait for deep pullback to short.?What made you to attempt direct brekout in this case which you normally avoid.

    What is the diffence between 12.54 brekdown failure of BRN and your 13.33 entry.. where you kept sl for the same?

    Thanks and Regards

    Bharat

    ReplyDelete
    Replies
    1. SMART TraderApril 18, 2015 at 11:12 AM

      Price fell 100+ points the previous day at the fag end. Such moves will have a second leg usually. There was no time for a second push down and retest. today after the retest price refused to move up and test IRH. Price traded within the retest MC for 20 minutes refusing to move up and broke down
      I did not understand your second question. At 13.33 I thought critical mass already in short and time is ripe for a reversal. We are trading the break of BRN and keep the stop at the other side of DP considering your risk. Iy your reading is right price should not go much below BRN

      ST

      Delete
    2. BharatApril 20, 2015 at 9:07 AM

      ST,

      Thanks for nice explanation .

      I was asking about the visual difference between the reversal from bottom at 12.54 when it came back above BRN after breaking it down in earlier candles. and same thing with 13.33 candle closing above BRN after ealier candle breakdown below that level. Was it due to three strong candles 13.27, 13.30 and 13.33 which is not the case in 12.45 to 12.54 candles.

      Delete
    3. SMART TraderApril 20, 2015 at 7:18 PM

      Difference is in anticipated order flow. Just think about the SL orders of shorts. we need to utilize it
      Patterns like BOF etc are not important. Context within which it happens is more important.Then think about the critical mass . In second trade it will be higher.

      ST

      Delete
  5. sentu shilApril 16, 2015 at 6:36 PM

    thanks...missing u

    ReplyDelete
  6. zenApril 16, 2015 at 7:16 PM

    Im tired looking for you daily.. Good to see you again...
    :-)
    Zen

    ReplyDelete
  7. UnknownApril 16, 2015 at 8:04 PM

    thanks ST

    rgds
    Kishore

    ReplyDelete
  8. AllwinApril 16, 2015 at 8:13 PM

    Welcome back Sir, good to have you back.

    ReplyDelete
  9. UnknownApril 16, 2015 at 8:22 PM

    Hi ST,
    Welcome back.

    ReplyDelete
  10. UnknownApril 17, 2015 at 1:46 AM

    Hi ST,

    Happy to see you again. Thanks for the post.

    I have created my blog and posted my first post. . Please comment on my second trade. what is your thought process

    http://aristatles.blogspot.com/

    Thanks,
    Aristatle.S

    ReplyDelete
    Replies
    1. SMART TraderApril 18, 2015 at 11:16 AM

      Nice one. Good trades
      Go with the market bias.
      Enter when a counter trend move stalls at a DP to ride the trend

      ST

      Delete
  11. UnknownApril 17, 2015 at 8:21 AM

    Welcome back sir, glad to see you again in action. Trust, you are through with your roof work.
    Couldn't understand TP of your first trade..? No pivot break etc.

    ReplyDelete

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