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

Tuesday, April 21, 2015

21042015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
Nifty moved well today. But I could not capture any good moves. Missed the BOF of PDL in the morning and the later BOF long failed to move. Had to scratch this one. There was an order at BRN 8500 to sell . Market reversed before that. Hesitated to enter on the break of PDL in the afternoon.This one moved very well.
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15 comments:

  1. SuMaApril 21, 2015 at 3:54 PM

    Thanks.

    ReplyDelete
  2. Uday DaveApril 21, 2015 at 4:15 PM

    Sir,

    What are your thoughts for TST sell at BRN around 9:30 in the morning? A CT 60 point move to the DP.

    Thanks.
    URD

    ReplyDelete
    Replies
    1. SMART TraderApril 21, 2015 at 8:16 PM

      The momentum move up was scary to fade
      further there was a fluid above and BRN did not give much support on earlier down move.
      Before hitting the BRN it broke PDC and a swing high. We cant rule out a pull back to these levels and further up move

      ST

      Delete
    2. UnknownApril 21, 2015 at 8:46 PM

      i too was thinking if i could have taken this setup so this explanation brings clarity to me too, thanks :).
      You have mentioned that you placed sell order around 8500, could you explain the details of these kind of trades, like on what conditions you decide to take trades like these ? where would the initial sl be in this trade ? how you expect price to move to satisfy your trade premise ?

      Delete
  3. Nifty CrazyApril 21, 2015 at 4:39 PM

    pp mean what sir,bof trade you really missed or intentionally not touched

    ReplyDelete
    Replies
    1. SMART TraderApril 21, 2015 at 8:19 PM

      PP means Pressure Play. Read the post on this subject
      We will not be confident to take some signals and hesitate to enter. Some times we will miss some good trades
      Part of the game

      ST

      Delete
  4. UnknownApril 21, 2015 at 6:41 PM

    thanks ST,
    Even I couldnt take any trade today

    rgds
    Kishore

    ReplyDelete
  5. UnknownApril 21, 2015 at 11:39 PM

    ST,

    what about going long at PDL at 12 :20 pm after beautiful pin bar. because break of PDL failed 2 times in the morning session.

    Another long signal at 13 :50 ..immediate reversal at PDL master candle..

    Can you please share your thought process here.

    Thanks,
    Aristatle.S

    ReplyDelete
    Replies
    1. SMART TraderApril 22, 2015 at 8:50 AM

      Do not go against the market bias . Price was not able to hit the morning high even after a BOF of IRL/PDL
      These counter trend trades are low probability trades. You can go for it if you can manage it tight.

      ST

      Delete
    2. UnknownApril 22, 2015 at 12:11 PM

      what i have observed( i dont have much experience trading Nifty though) is that on days when volatility is high and market has moved much in higher timeframes we can look for CT trades with tight management though, with high volatility we have better chance of getting a decent move before it reverses and after long trend moves there is high chances of profit booking so we can look for these CT setups near major demand/supply zones.

      Delete
    3. UnknownApril 22, 2015 at 11:48 PM

      Thanks ST

      Delete
  6. BhavirApril 22, 2015 at 12:33 AM

    Indeed a pleasure to have you back sir. You have truely added value to my chart reading skills.
    Would like to share what I am watching as we approach prior support at 8360. Your thoughts appreciated.

    https://niftytradediary.wordpress.com/2015/04/22/21-april-2015-eod-analysis/

    ReplyDelete
    Replies
    1. SMART TraderApril 22, 2015 at 9:00 AM

      Support and resistance are what matters in markets. Because these are markets own levels
      Dps are high probability SR levels. Trading these levels with market bias will always give you an edge

      ST

      Delete
  7. DMApril 22, 2015 at 8:31 AM

    ST,

    When you write "Missed BOF of PDL in the morning" which possible trade are you referring to?

    Also, have noticed a pattern when Up Trendline (UTL) and Down Trendline (DTL) intersect. Have termed it Channel Cross (CC), Price reverses from intersection point.

    Yday UTL was holding price before it cracked (also uploading 1M chart for more clarity). It reversed and moved up but a new DTL held it down. Moved below UTL and retested intersection point before dropping further.

    3M: http://screencast.com/t/6k1uvdUD5FU
    1M: http://screencast.com/t/7QhsaCnGCK8

    TrendLines/Channels are not a part of DP system. But this could be investigated. TST trades in the direction of daily trend could be initiated at the intersection point.

    Thx,
    DM

    ReplyDelete
    Replies
    1. SMART TraderApril 22, 2015 at 9:16 AM

      One can aggressively long above the first candle expecting a bounce from PDC
      Nothing wrong in exploring or investigating other possibilities. But the problem with TL is that they are very subjective and can be drawn all over the place

      ST

      Delete

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