Tuesday, February 4, 2014

04022014


Nifty gaped down below PDL. IR formed. Skipped Counter trend breakout  of DO/IRH as BRN was above the level. Short on BOF of  BRN. Trade did not reach IRL as expected. Covered at a small profit. Range was a Barbed wire around NS RN 5950. Went long on the BPB of Range High/BRN. TP at PDL/PDC area.

26 comments:

  1. Hi ST,
    Please see,

    http://i.cubeupload.com/PROJtj.png

    It is in reference to http://niftynirvana.blogspot.in/2013/10/initial-stops.html Pic 9.

    Isn't it picture perfect?

    I could spot it successfully today and traded.

    Thanks a lot.

    ReplyDelete
  2. Hi ST

    Where did you put your SL for your BPB trade?

    Thanks
    tRaDeR_B

    ReplyDelete
  3. good evening sir ,today i took short position BOF of RH/BRN/DO and booked profit around 2nd flip zone and i avoided BP trade. sir i like your BOF trading method that is more comfortable than BP

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  4. tRaDeR_B

    My physical stop was below the previous swing low. But I will scratch if the Range high flip did not hold

    ST

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    Replies
    1. Hi ST,
      Please would you tell what you consider as range high flip "not holding". A close below range flip?

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    2. S Roy
      A resistance once broken should act as support on revisit.
      This change in polarity is called a price flip.If this is not happening it is time to suspect the strength of trend

      ST

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  5. URD

    The same situation
    While defining ranges always consider a wave ( either impulse or corrective) as a probable range
    Wide ranges always will have a mid point like Brackets or Barbed wire.It is better to consider your range 1 and 2 as a single range.Otherwise you will end up fiddling with the middle and lose.

    http://i60.tinypic.com/ixcg01.png

    For breakouts you can wait till the latest flip breaks. If your RR permits

    ST

    ReplyDelete
    Replies
    1. Hi ST, in this chart, please could you tell at what point the red and green ranges become a range. I have marked my understanding of when with the yellow arrow (red range) and the purple arrow (green range). Please correct it. http://i.imgur.com/3Crtuc0.png

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    2. S Roy
      If price tests each extremes twice , you can consider it as a confirmed one
      Once a range extreme happens to be a DP it is a high probability trade location

      ST

      Delete
    3. Hi ST,
      I was just looking thru this image again. http://i60.tinypic.com/ixcg01.png What was the reason you have drawn the red range below BRN though price touched BRN, At what point did you bring the red range high down to where it is now? Thanks for your help.

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    4. I have taken both the trades at DP BRN.
      First one BOF of BRN and the second BPB of BRN
      I was suspecting a deep pull back to the flip and stayed with the trade.Market proved the exact range after the pullback only.Till then it is just provisional.Lines are always drawn after the market close.I will not attempt a BOF of this provisional range high

      ST

      Delete
  6. Anoop

    Stick and focus on what is comfortable. Learn it well and go for the next. Market will be there always

    ST

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  7. Another day which reminded me of your advice on trading a with-trend gap opening.
    Thanks, I am learning a lot by following your style. I do paper trading through the day and in the evening do bar by bar backtesting of previous months trades. Then I compare my trades with yours and try to learn.

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  8. PATrader

    Trading is a mental sport.
    Remember It demands continuous practice and training.
    Do not look at very old charts. My style has evolved over time.

    ST

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  9. sir, i have trapped on more BPB trades and also missed BOF trade chance with it so i am focusing only on BOF trade

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  10. thanks ST for the post

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  11. ST
    Thanks for reply. Now please check this
    http://i59.tinypic.com/66yfcl.png

    As market progresses this is how range develops, correct?

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  12. URD

    I will make a separate post on this later as it requires some explanation. For the time being stick to your own first explanation and Pic9.It will serve the purpose.

    ST


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  13. Good Morning ST,

    I would like to discuss with you my thoughts during market hours like, bias, range, opportunity, etc. if you allow me and it does not bother you in your trading.

    ReplyDelete
  14. ST,
    Like this

    http://www.mql5.com/en/charts/1406830/nse-nifty-m3-gci-financial-ltd

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  15. URD

    You are getting the thought process right.Just do it.
    Live discussions are distractions and will become crutches later.It will lead to other cognitive problems like confirmation bias.

    In fact this will make your Decision making process more complicated and inconsistent. Believe me I have gone through it earlier

    ST

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  16. ST Sir,

    After you made your BPB entry, there was again a pullback to IRH and at least 3 candles closed below BRN before taking off to touch PDL/PDC/TP area. May I know, what prompted you to stay in the trade in this instance.

    My query is also in the backdrop of your 10 point answer to SK on the 03022014 chart. Would point #3 about gap closure not apply to this instance.

    Regards,
    KSG

    ReplyDelete

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