31012014

Nifty gaped up due to premium component. Found support at BRN. Did not long above the IR as BRN of NS was above it. FTC at range high was a short.TP at BRN as price refused to go below BRN.Entered a long on BOF of BRN. HOD was the target. But price reversed earlier. Scratched.This high established as a range high. Shorted the BOF of range high.. TP on LOL BOF of BRN/LOD.Did not enter long here. A 20 point range the entire day.

30012014

Expiry day .Nifty gaped down below PDL. IR formed. Skipped the short below IRL as RN was just below. BOF of RN was a signal to go long . Avoided. Trend was down and need to crack MSP,IRL and IRH to go up. A TRAP at MSP. Thought of going short below the Higher low made after the BOF of RN.Went short only below the then LOD. Covered around 3 PM at a small profit. Could have gone long above RN and made cool 20 points. Hesitated and missed it.

Anniversary

                  

Thank You for the Support

30-01-2014

29012014

Nifty gaped up within previous day range and attempted to break above PDH. BOF of PDH gave a short signal. I went short below DO. I was expecting a quick 10 point move to RN. But it took more than 90 minutes to travel 10 points. TP at RN. Nifty traded in a range for a while and broke down. Went long on the LOL BOF of PDC/RN. Trade did not move . Scratched. Went short on BOF of RN. Entered earlier as I suspected a bounce from PDC to form a Barbed wire. TP above the pin bar high.

28012014

Announcement day. Did not trade till the dust settled after the announcement. There were two opportunities BOF of IRH and BOF of BRN. These trades were very profitable if somebody took it. I stand out during announcements. The only trade I took was the BOF of IRL/PDL. The trade did not move.Scratched this one Then there was a TRAP . But the trade did not trigger.

27012014

Today I was not trading live. On hind sight analysis I find only one opportunity . The second BPB of IRL to the down side to TP at RN. This can also be considered as a TRAP pattern.There were two patterns earlier. BPB of IRL. was not advisable as price failed to break the swing low on the first move down after BPB. The counter trend long was also weak . There was no rapid rejection. Price stayed more than 45 minutes below IRL before breaking to the upside

24012014

Nifty Gaped down below PDL.A counter trend outside gap.I was looking to short.But price managed to climb above PDL Went long on BOF of PDL on break of IRH. This trade failed immediately. Exited below PDL. Short below DO. IRL was the FTA. Price got some support at IRL but BRN 6300 gave way. TP at 6280 level when the second push down failed. Nifty formed a range. another short on BOF of range high.Did not move as expected. Exit at LOD

23012014

Nifty gaped down. Failed to go below yesterdays demand zone. Went short on BOF of PDC which was also the gap closure. Covered the trade at a small profit. Avoided the second BOF as price did not go above previous attempt and did not trap BO longs.Price broke PDC and settled above it in a small range. Avoided the BPB as RN ,NS RN, PDH above it. Shorted when price broke down below PDC.Got trapped . exited at a small loss. Long Above Range High on BOF of range low. It was a TRAP pattern. TP at PDH. Avoided BOF of PDH as there was very little space.Learn to trade short term ranges

22012014

Nifty opened within previous day range. Broke below PDL and BRN.Then bounced back. Went long on the break of IRH/DO. TP when BO of PDC failed. Attempted a short below MSP /PDC /. This trade failed. Thought of going long above the range high as it was a TRAP pattern . This trade did not trigger. Nifty channeled down for a while and suddenly spiked breaking PDH and RN and finally closed above PDH.
I wonder what was the reason for this sudden spike. It was not in Bank Nifty.I don't like the opening and closing price action. Something is cooking up.

21012014

Nifty opened just above PDH. The first MC candle acted as IR. Attempted a BO trade on break of IRH. BO failed and scratched the trade. Went short below PDH as BOF . BRN of NS stopped the move. Covered when second push down failed. Another long trade on break of PDH. This breakout also failed. Nifty moved in a 30 point range all the day

20012014

Nifty opened near PDC and sold. BOF of PDL-RN gave a long signal. Went long above PDC. TP around BRN 6300NS area. Did not take FTC as BRN was near. Nifty was channeling down. A TRAP pattern did not trigger. Nifty made an upward channel move. Another TRAP pattern triggered a long. Entered above the swing high . I expected enough orders to break HOD. But there was no follow up buying. Made 10 point on it.

17012014

Nifty opened below PDC within the previous day evening chop. BOF of PDC/IRH gave a short signal. Entered on break of IRL. TP near BRN. A range move for 2 hours followed. BOF of BRN and TST of PDL gave a nice short. Cool 50 point move.

16012014

Nifty opened above PDH and refused to go beyond the first bar. IR formed. Suspected a Barbed wire around PDH. Short on break of IRL as BOF of PDH. Covered when second attempt to the downside failed. TST of IRL was a good opportunity to short. Missed it as it was a channel move to the upside. Long on BOF of LOD. TP when IRL rejected. Attempted a short when LOL BOF of PDH/IRL . Short was on break of MSP. Stopped out.Entire day Nifty was trading within 30 points.

SECRET

This formula explains how and why successful traders make money.

S - Small losses (you must strictly control losses)
E - Extended Profits (you must let your profits run in order to give you big profits)
C - Consistency (you must have a method that you apply consistently)
R - Risk/Reward (This is VERY important:)
E - Edge (You must have an edge and understand it clearly)
T - Trade Plan (You must have a trade plan which translates your edge into a plan)

If you master the SECRET formula - you will become successful. If you don't then you are gambling, not trading.

Article Source: http://EzineArticles.com/8226704

15012014

Nifty opened within previous day range. Spiked and broke PDH. Went long on the BPB of PDH.I was not very confident about the trade as BRN was just above it. A minor BOF of the consolidation above PDH was a positive factor to attempt this trade. Exited the trade during the consolidation above BRN as WPI announcement was scheduled. After the announcement Nifty broke the range high . Went short on BOF. TP near PDH.Long above BRN to the fluid. TP at 6320 as I thought the break above HOD was failing

14012014

Nifty opened at the middle of previous day closing range. Went short on the break of IRL. Target was the range low. But nifty bounced from the flip area and hit my Trailing S before reaching the target. Long on BOF of RN 6250, the range low. Closed when price failed to go above IRL.

13012014

Nifty opened above BRN 6200 and went up without a pull back . Missed the up move. Short on BOF of PDH. Nifty drifted down to MSP. Covered the trade on BOF of MSP above MC. Did not attempt the long here. The situation was interesting. 40 Point fluid above and below the range. I was wondering which way it is going to break. Finally a BO long. As expected a fluid move till BRN 6300 without a pull back.

Tug of War

This is what happens at a Decision Point again and again. Your success as a Decision Point trader will depend on your ability to spot the winner at the earliest and act without hesitation.Early birds will catch the worm. Sharp focus on the subtle clues and nimbleness to change the bias as the price action unfolds is an absolute must.

10012014

Nifty Opened near PDC and went down. PDL rejected strongly. Went long on BOF of PDL. TP at IRH as there was very strong resistance there. IRH,DO,PDC, PDH and BRN. Price refused to go down. Went long on the break of BRN. We rarely get such confluence of  levels to defend our trade. TP around 6230. I was looking to short as critical mass was already long. BOF of Range High/HOD gave a good opportunity to short. TP at DO. Again there was a shorting opportunity on BOF of BRN. Did not take it.

08012014

Nifty opened within previous day range. IR formed. Traded within IR the whole day forming a Barbed wire around BRN. Tried two breakout trades of BRN. One short and a long. Price went exactly where it was supposed to go and refused to go beyond these levels.

07012014

Nifty opened within Previous day range. Broke above PDH and got rejected. Short on BOF of PDH on break of DO/IRL. Nifty went down quickly breaking PDC,PDL and BRN. TP around 6190. A range move between BRN and LOD for a while. Long on break of BRN as PP. Covered at the end of fluid at PDC. Attempted another short on break of BRN to the down side.Target was LOD. This one did not move as expected and I scratched it.
Notice the LOD. The lower line is the exact low of the day. But I ignore the tails. That is the middle line.. Later market proved these two levels are wrong and 6180 is where the orders are. Notice the four attempts by Nifty to go below this level failed. Last candle that made LOD was an overshoot of the momentum move.Once market gives such clues make slight adjustments to the levels. Do not expect text book patterns and rigid levels. Trade the concepts not patterns. 

06012014

Nifty gaped down within previous day range. First MC candle acted as IR. Skipped short below IR due to PDL and BRN. Short on BOF of DO/IRH. TP at PDL. Long on BOF of PDL on break of MSP. BRN 6200 of NS is strongly  resisting

TRAP

Here is a guest post from U R Dave who is a regular reader of the blog. The post is self explanatory and do not need any introduction. Kindly go through it and  give your feedback. Please do not forget to thank Dave for his valuable contribution.You may also have some of your own observations. Please do share it. You are always welcome to make a guest post if it is something related to pure price action.

This post is an attempt to find a trading opportunity when markets are trending so that we can trade in the direction of the trend.  Trend trades are always high probability trades as the market momentum is on our side.

We assume the market is ranging all the time and for us a trend is successive higher or lower ranges. An uptrend is successive higher ranges and successive lower ranges are considered as down trend. We try to sell the highs and buy the lows of these ranges.

Problem arises when market is in a clear trend or in a grinding channel. It is very difficult to identify the ranges on a type 1 trend day or on a channel day. I have experienced that MSP in such situations gives a very good trading opportunity. MSP is a very significant price level and it attracts a lot of order flow.

Let’s try to analyze the order flow at MSP. At MSP, we can expect a lot of SL orders from those who are riding the current trend. The break of MSP is perceived as reversal of trend. So there will be lot of BO trade orders trying to capture the new trend. What will happen in case of a BOF at MSP?

All the traders riding the current trend get shaken out of the trade. BO traders entered to capture the new trend get trapped. Those who have shaken out will try to enter the trend again and the trapped traders will hurry to exit. This order flow will create an accelerated move in the original trend direction.

If you observe closely, you can find that meat of the trend move happens after this pattern. This is a kind of trap where a lot of traders get caught on the wrong foot. We will call this Trend Acceleration Pattern (TRAP in short)

Before initiating the trade, we need to make sure that there is enough space for the trade to move and our SL is within acceptable limits

I am uploading  a few charts. Click to view them.(Remove tick at  use download manager) Please do give your valuable feedback.  I welcome your views, suggestions, comments and criticism.

Thanks

UR Dave

tradingblisspoints, a regular visitor of the blog has shared another interesting observation about MSP. You can read the post in his own blog. Click to read

03012014

As expected Nifty remained rage bound in the morning session.It Channeled in the afternoon session.  Attempted two short trades BOF of IR High. First one made 10 points and the second one stopped out. There was no space to move with PDL above and BRN below.

02012014

Nifty opened within previous day range. tried to go below PDL. BOF of PDL was a signal to go long. But before I could enter an order it went up breaking PDC and PDH. Vertical move till BRN 6400. BOF/FTC of BRN gave a short signal. Went short below the breakout MC. Then it was just trailing. Stopped out for a point at BRN 6300 and missed the next 40 point down move. Today during the fall Zerodha Trader was not working properly. Now I am having some doubts about its reliability

01012014

What a day ? Most of the traders are drunk and flat, I think.Pathetic volumes.  Made Rs 350 trading a 5 point range.Broker will rob 200 out of that..