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

Friday, July 31, 2015

31072015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
Nifty tried to move up above PDH/BRN and got rejected. But was not able to move below DO and IRL. Long on break of BRN. Stalled at NS BRN for a while and moved up. Exit around 8560. Type 1 trend day

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14 comments:

  1. ArvindJuly 31, 2015 at 4:09 PM

    Hi Sir,
    It seems you have used 5M chart today, if yes, any specific reason ?

    Thanks
    Arvind

    ReplyDelete
    Replies
    1. SMART TraderJuly 31, 2015 at 4:38 PM

      Experimenting after reading this
      http://www.traderji.com/derivatives/99030-learn-how-fish-69.html#post1092619
      DPs are time frame independent levels. So 5M wont make any difference. But while trailing trends 5M will have some advantage. You will not be shaken out too soon keeping stops at minor 3M price pivots

      ST

      Delete
    2. AnonymousJuly 31, 2015 at 6:43 PM

      Agreed Sir. However I observed its difficult to have 10 points stops when trading 5 min charts. Its just like moving to any other higher time frame.
      What's been your observation so far?

      Delete
    3. SMART TraderAugust 2, 2015 at 7:06 PM

      Higher time frame always require higher stops

      ST

      Delete
    4. TrekkieAugust 3, 2015 at 7:55 AM

      Hi ST,
      Would entry on 3 mins and SL trailing on 5 mins work?

      Delete
    5. SMART TraderAugust 3, 2015 at 8:46 AM

      3 or 5 do not matter. What we need is the ability to read the market bias and skill to enter without hesitation when a counter bias move stalls at a good location.

      ST

      Delete
    6. TrekkieAugust 3, 2015 at 9:03 AM

      Thanks a lot ST

      Delete
  2. TrekkieJuly 31, 2015 at 5:12 PM

    Thank you ST.

    ReplyDelete
  3. TrekkieJuly 31, 2015 at 5:23 PM

    Hi ST,
    What was the thought process in SL movement between 11 and 1 pm. today. ? Thanks.

    ReplyDelete
  4. xrtrader1August 1, 2015 at 6:18 PM

    Hi ST for first trade where was the SL. It did not go as expected initially what made you hold the trade when it came below pdh. When do you scratch such trades

    ReplyDelete
    Replies
    1. SMART TraderAugust 2, 2015 at 10:43 AM

      Stop was at 8489.Better to sit tight trusting our reading in these situations.Bias was bullish and price failed to move below IRL. Price takes the path of least resistance. BRN/PDH/IRL/PDC cluster below and and a fluid till 8580 on top.Expectation was a trend move or a BW around PDH and BRN.10 point SL was fixed long back when ATR of NF was around 40-50 points and when it was around 50xx. Very tight for the current volatility and index value. better not to micromanage unless the original premise gets invalidated

      ST

      Delete

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