Actionable Analysis

As far as trading is concerned every analysis should lead to the identification of “Actionable” price levels. If your analysis is not able to identify the price levels where you can take concrete action, it is a waste of time and you are practicing a useless skill.

My trading revolves around “Decision Points” where I am able to take action with the least amount of risk. Price can react in three ways at these levels. It may accelerate through it, stall at there or reverse from there. My current focus is to develop a “Feel” of the price action at these levels and enter in the anticipated direction without hesitation.

I have seen many traders spending hours together doing analysis. Unfortunately most of their time and efforts are wasted as their focus is not on identifying levels on which they can “React”. Ensure your analysis is focused on something easily “Recognizable”, “Reactionable” and ‘Repeatable” otherwise you are analyzing to paralyze yourself

Brian Hoffman

Brian Hoffman will be doing a presentation tomorrow ( 29-09-2012 ) evening. The event is sponsored by  Ninja Trader.It is at 11.00 AM EDT ( 08.30 PM IST, I think). Brian Hoffman is a full time trader and consultant who has had the unique opportunity to work with traders from all around the world.   His trading methodology is based on price action and exploiting retail trader psychology and does not require the use indicators or systems.

Register for the event here

28092012

Nifty gaped up and gave a very low risk opportunity to go long . Spike and channel moved well. Went short when the third attempt to go above the tight trading range failed. Later scratched it.

Price Flips

Do you know which price pattern repeats over and over again in Markets.?

I had written an earlier post on this ( Read). I am afraid most of the readers have not understood it properly.Price Flips are the basic pattern of all auction markets.It is the very basic structure of the price action..This is the concept on which almost all the profitable trading systems or methods are built.Any trading method ignoring this behavior of the market is likely to fail.

Everybody is aware of support and resistance in markets.A price area which was previously support or resistance has a good chance of continuing to provide support or resistance again in the future.Once this levels are broken this levels become Price Flip zones.In other words a resistance turns into probable support and a support become a probable resistance.It is like once you climb the stair the roof becomes the floor

Price Flip zones are an important concept in trading. It is very important to initiate your trades at these levels.It helps us to place our stops at logical levels and enter trades with very favorable RR ratio.Consider Price Flips as zones and not exact levels.Price Flip zones work in all Markets irrespective of the time frame you trade.

Pay attention to Price Flips zones while negotiating price action.  This may provide great help in extracting Money from the Markets

 

27092012

Another disastrous expiry day. Market fooled me again and again. Opened just above PDH and sold. BPB short stopped out. Went long on the retest of PDL. Expected a test of BRN and a probable reversal. But it reversed without testing BRN. Went long on the LOL BOF of PDL and IR Low. Stopped out. Expected a long signal at PDL.Price  reversed without touching PDL.Skipped the last LOL BOF of LOD/PDL

26092012

Nifty gaped down below PDL. Looking for an opportunity to go short. Broke PDL and gave a nice BPB.Scratched the long later. BOF of LOD gave a long signal which moved well.. TP at HOD