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

Monday, July 13, 2015

13072015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Nifty opened above PDH and failed to move up. Went short on BOF of PDH. PDC was close and gave support for a long time. I held as the risk was just 5 points finally it broke down. But supported at yesterdays last impulse low. I suspected a range within last impulse of the previous day. Long on BOF range low above PDC. Never expected a move like this. Then it was a channel upmove. tried a short and stopped out

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12 comments:

  1. TrekkieJuly 13, 2015 at 4:12 PM

    Hi ST, thanks a lot. I so wanted to short that bar after it was a BOF of BRN and range, but did not want to jump in without IR because I take wrong trades when I do that. I shorted what I thought was IR twice, 1st trade price bounced back and I got kicked out, my SL ws too close because of BOF at PDC, in fact chart does not show my trade, but I got kicked out. 2nd short of IR, I got out above 10:18 Was I totally wrong with my SL both times?. What were some of the reasons you were able to short the bar? My first bar was 15 points, was your SL above 2nd bar? The final long saved my day thankfully.

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    Replies
    1. SMART TraderJuly 13, 2015 at 5:00 PM

      Problem is you were trying to trade the BO of IRL rather than BOF of PDH
      If you are trading BOF of PDH, your trade gets invalidated only if price moves above PDH which never happened
      You sell the range highs and buy the lows( if other conditions are favorable). In a suspected range PDH-PDC,try to sell at PDH and not the break of PDC.These kind of BO trades will trap you most of the time.
      Best long trade is always a buy at range low. Somewhere near 8360 with SL below 8350. Ideal trade is always at a DP with a SL on the other side

      ST

      Delete
    2. TrekkieJuly 13, 2015 at 5:09 PM

      Thank you so much ST. I will remember that.

      Was your long above 12:15 bar or did you take just break of PDC? Thanks again.

      Delete
  2. salildaliJuly 13, 2015 at 4:41 PM

    HI ST ,
    When BOF of PDH happened PDC was very close. hardly 11 points. So what was reason for taking that ?
    salil

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    Replies
    1. SMART TraderJuly 13, 2015 at 5:12 PM

      Usually the last impulse of the previous day will hold as a range. further daily was in decline mode and bias was slightly bearish. BOF confirmed it. PDH as well as BRN was a good defense for the SL.We always need to be prepared for a bounce and prepared to deal with it

      ST

      Delete
    2. SMART TraderJuly 13, 2015 at 5:16 PM

      @ 8381.
      Price broke down twice from 8380 and failed to extend beyond a bar which proved buying below the range low

      ST

      Delete
    3. TrekkieJuly 13, 2015 at 5:25 PM

      Thank you ST.

      Delete
    4. salildaliJuly 13, 2015 at 5:27 PM

      Thank u, ST.

      Delete
  3. UnknownJuly 13, 2015 at 10:40 PM

    ST Sir,

    Good to see that you have resumed your trade journal.

    Regards,
    KSG

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  4. amberJuly 14, 2015 at 1:12 AM

    Sir good evening,sir kindly update what are the other conditions favorable for buy and sell thnx

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    Replies
    1. SMART TraderJuly 14, 2015 at 3:59 PM

      Other conditions like trend, critical mass, space etc favourable

      ST

      Delete
    2. amberJuly 14, 2015 at 6:39 PM

      Sir good evening and thnx

      Delete

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