30042013

Nifty gaped up above PDH and drifted down. I was looking to go long at PDH. But PDH and MSP failed to give support. It was too late to short. So skipped the BPB of MSP. Further PDL was too close. Finally went long on the break of MC as BOF of PDL. Scratched when the move failed to move above BRN. Could have made some money had I stayed in the trade with my original stop.

29042013

Nifty opened within previous day range. IR formed. Skipped the BPB of IR high as BRN was too close. Price hit PDH and channeled down. without giving any reliable short signal. I was expecting a test of IRL/LOD. But nifty traded in a range between BRN and PDC. BOF of range low gave a long which ended as a scratch. Finally went long on the break of 10 point tight trading range. This one moved well.

Reading: Process Loop

What should you do today to improve your trading : Pradeep Bonde

Run your process loop...

Process loops are series of well defined steps based on a setup.
If you want to trade earnings, run earnings process loop.
If you want to buy pullback run pullback process loop...
If you want to trade options , run options process loop..
If you want to trade ETF run etf process loop...
If you want to day trade , run day trading process loop...

Unless you have set process loop you will flirt from method to method and setup to setup.
Process loops develop procedural memory...
The benefit of running process loop will be apparent after 4 to six months...
Doing same thing again and again and again develops expertise...
Throughout the day or after close run your process loop.
Depending on your setup idea and timeframe of trading process loop will vary...
Running same process loop for extended period of time will make you an expert on a setup...

Stick to few setup and do the same shit everyday till you become expert on that setup...

 

Read the original post at stockbee

 

Break

Dear All

I will not be updating the blog for a few days . I am on vacation with family and traveling
I will be back on the blog on 29/04/2013. Take Care.

SMART Trader.

Conviction

My trading method is built around a few basic assumptions. I have tried to make it as simple as possible, and as close to the reality of the Markets.

• Day traders control the market on a day today basis. Nearly 90% of the volume is generated by these short term traders. They are creatures of habit and we can predict their reactions reasonably well.

• Professionals play by rules and they buy and sell forcefully at certain price levels which I call Decision Points. These are the levels where one can enter with the least amount of risk.

• Price moves as a result of demand and supply imbalance. Successful trading is reading correctly which side is in control and trade in that direction.

• Momentum moves originate when the critical mass get trapped on the wrong side of the move. Nobody can exit a losing trade without creating an order flow against his own position. Enter where traders trading the current move realize they are on the wrong side and en cash the resultant order flow.

Everything else is tactics. If you have conviction in these ideas, you can make the method work.You should have a process that you believe in. You must have confidence in your ideas. Making money from the market is all about utilizing the opportunity given to you. Market is not a place to procrastinate. Take decisive action to grab the opportunity and try to manage the trade well.

12042013

Nifty opened within previous day range and immediately broke PDL. The very first bar acted as the IR. It was a Barbed Wire pattern around PDL. When it broke IRL, I was looking to short.Price formed another range below IRL. Went long when  BOF move of range low broke IRL. TP at HOD. Short on BOF of IRH. This trade did not move as expected.

11042013

Nifty opened above PDH and formed a cigarette  pattern. Went short on the break down. PDC was a concern, but stop behind PDH  a three hour  range low was a plus point.This trade did not move as expected. Scratched Did not have the confidence to go long as there was a cluster of resistances above. PDC, PDH, IRH and BRN

10042013

Nifty opened within previous day range. I was looking to go long from BRN, PDC, PDL barrier. Did not get a favorable entry for this CT trade. Skipped. BOF of Ir High gave a short signal. Covered when price climbed back to the range. Long on BOF of PDL. This trade gave good profits

09042013

Nifty opened just below PDH. Made a Barbed wire around PDH. Opening candle acted as the IR and gave a cigarette pattern. Did not trade the break of the cigarette as BRN was too close.Went short on BOF of HOD.. I was not very confident and thought  BRN , IRH or IRL will hold.. Went short again on the break of PDC. Covered the shorts at BRN 5500.

08042013

Nifty opened near PDL . Previous day closing range acted as the Initial Range.Did not attempt any trade as there was no reliable signals. Entire day Nifty was within this 25 point range

05042013

Nifty opened below PDL. First candle acted as IR. Expectation was a barbed wire around PDL. Tried a short trade on BPB of PDL/IRL . Scratched it . BOF of IR High gave a short This trade was OK. Finally went long on BOF of LOD. I expected this to move well as the Critical mass was short in market and being week end they will cover the shorts.The initial momentum did not sustain.

04042013

Nifty gaped down below PDL. IR formed. Traded within this range nearly four hours. Missed the TST of range high. ( If you look closely you can find Nifty making a cigarette within the second down leg of IR. TST of range high was a BOF of Cigarette pattern.). Short on BPB of Range low. Covered at BRN

03042013

Nifty opened within previous day range.After the small gap down it was slowly moving up. I was looking to short on gap closure or PDH. But Nifty formed a range below these levels. BOF of range high gave a short signal..Scratched the trade on BOF of Range Low/DO. Later Nifty broke the range low and pulled back giving a nice BPB trade. Nice move down PDL and BRN did not lend any support

02042013

Nifty opened within previous day range. IR Formed. BOF of IRL gave a long signal. Entry above DO/MC High.. It was just trailing the stop the whole day.. Type 1 trend day.

01042013

Nifty gaped up above PDH. Expectation was a channel move. First candle acted as the IR. There was no reliable pull back after the break of IRH. Shorted when it entered the IR again.TP at BRN. Long on BOF of BRN. TP when it failed to move above IRH