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

Wednesday, May 6, 2015

06052015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis   
Nifty gaped down below PDC and sold. Could not capture the morning down move. Thought of shorting TST of BRN. But stayed away as I expected some consolidation. Short on BOF of BRN. Covered at RN. Then it was chop around RN
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14 comments:

  1. zenMay 6, 2015 at 7:35 PM

    ST,
    Why it is not a new Sell again at 12:30 bar which is BO of another BRN 8150 ?

    ReplyDelete
    Replies
    1. SMART TraderMay 6, 2015 at 7:40 PM

      RN is not a DP and used generally for managing trades
      Market had fallen around 200 points and I favored a long

      ST

      Delete
  2. AHGTraderMay 6, 2015 at 7:42 PM

    Thank you for the chart. Super good discipline to not chase. Awesome.
    The BOF trade of BRN, after the hammer the next two bars did go below BRN. I am curious why you waited to enter on the 3rd bar after the hammer? Needed to see a close below BRN? Curious what you wanted to see before the short.
    Thank you

    ReplyDelete
    Replies
    1. SMART TraderMay 6, 2015 at 8:14 PM

      Was not waiting for a close below BRN.
      In fact I was not very confident at the time. It was the second test of BRN. The down move after the first pull back could not reach the early low. That is why I did not take a TST on second test there and waited for a confirmed entry

      ST

      Delete
    2. AHGTraderMay 6, 2015 at 8:21 PM

      Thank you for the response. Appreciate it. Do you mind explaining what a confirmed entry means? A quick reaction from BRN test from above and short when that reaction fails?
      Thank you

      Delete
    3. SMART TraderMay 6, 2015 at 8:31 PM

      TST is a blind entry without any confirmation. Here sell at BRN and keep SL 10 points above
      If we are not confident that BRN will hold what to do . Wait for the test and see whether it is a BPB or BOF
      Here there will be confusion always.Perfect entries are never possible.Waiting for more confirmation is poor RR
      Decision making is much easier in TST once you accept the initial risk

      ST

      Delete
  3. SuMaMay 6, 2015 at 8:23 PM

    ST Sir, what about PP long near 1:40 pm?
    I took that long and it immediately failed.
    How did you judge the situation to not take PP long?
    TiZ

    ReplyDelete
    Replies
    1. SMART TraderMay 6, 2015 at 8:44 PM

      Read
      http://niftynirvana.blogspot.in/2012/09/round-numbers.html
      Now check the NS chart. Got it?

      ST

      Delete
  4. UnknownMay 6, 2015 at 8:33 PM

    Hi ST,
    Please comment
    http://postimg.org/image/4f92lrq6b/

    rgds
    Kishore

    ReplyDelete
    Replies
    1. SMART TraderMay 6, 2015 at 8:48 PM

      http://niftynirvana.blogspot.in/2012/02/bucking-trend.html

      ST

      Delete
    2. UnknownMay 6, 2015 at 8:59 PM

      thanks ST,
      I was going long vowing critical mass.

      You usually attempts PP trades at the end of the day for catching short covering or critical mass exit ?

      thanks n rgds
      Kishore

      Delete
    3. SMART TraderMay 6, 2015 at 10:08 PM

      Para three. Bullet point three
      http://niftynirvana.blogspot.in/2013/05/pressure-plays.html

      ST

      Delete
  5. UnknownMay 6, 2015 at 11:30 PM

    Hi ST. Thanks for the chart and details. What about going short at 12.18 pm after big red bar. that time NF is already 200 pts down. but ATP is +30 from current price. So thought of the bulls will exit.

    Thanks,
    Aristatle.S

    ReplyDelete
    Replies
    1. SMART TraderMay 7, 2015 at 8:46 AM

      It may work
      But buying after a lot of buying has taken place and selling after a lot of selling are low probability once
      Sell when an up move stalls at a good level in a down trend

      ST

      Delete

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