Monday, July 16, 2012

16072012

Nifty opened within previous day evening range. I failed to notice this and missed the BOF trade at E. Missed the BOF  of PDL at A also.Price spent too much time under PDL. Price action after the BOF was not comfortable to initiate a trade. BOF of HOD was a signal to short which moved well after giving some chop in the middle of the range.
Do not try to trade point B as a BOF of PDL. because PDL lost its relevence after breaking from both sides.It is just a normal pullback in the trend.Never go long at point C as TST of  LOD. After an  accelerated move always wait for a second test as happened at point D

4 comments:

  1. sir how to identify that we not have to trade on b and c as
    in live trading we will definately purchase at c thinking that it turns from lod and for b we think first sell and than think it's failure so again trade .
    any suggestion in this condition plz

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  2. also sir at point a if price stays like this under pdl is u suggest to trade after that or we have to ignore this setup

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  3. Hi.. In yesterdays post you have mentioned that we need to ensure certain minimum number of positions had been created before attempting to trade a reversal.. How we do this by tracking Volume/ OI? Thanks

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  4. Sandeep Jain

    Both B and C are Counter trend.
    PDL had been broken from both sides already.Now PDL is not a fresh level and a Counter trend trade is a low probability trade.

    LOD is a fresh level. I would have gone long if it was a BOF. In case of TST after a momentum move better wait for a retest.

    Price remained nearly 45 minutes under PDL as if accepted . There was not an immediate rejection.I play safe

    @ Kranti

    I do not track OI or volume. Once Nifty moves say 20-25 points SLOWLY in one direction you can safely assume a large group of traders are positioned in that direction.
    If that move happens in a minute this may not happen.

    ST

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