Tuesday, June 3, 2014

03062014



Nifty gaped up above PDH and made a Barbed wire around it BRN and PDC as boundaries. Stayed out during the announcement chop. Nifty made two BOF of Range low during the chop and tested the RN. Waited till the break of PDC and PDH to go long as I was not very confident . Long on BPB of PDH. Price broke BRN and got resisted at 7425. TP when second test failed. Short on BOF of HOD. TP when the second test at PDH failed. There was another signal to go long into the fluid on BPB of BRN with HOD as target. Hesitated and missed it.

36 comments:

  1. Dear ST, had it not been for policy day, would u have shorted directly into fluid on first break on RN (11:18 candle) ?
    Regards,

    ReplyDelete
    Replies
    1. I would have shorted much earlier on break of PDC with stop above PDH

      Delete
  2. Hi ST

    Very nice trades. Was the last BOF HOB short trade a limit order??

    Also Plz go through my chart. Did I mark TRAP properly and was my entry correct or could it have been earlier??

    Remembered URD during taking this trade.

    Plz click here

    Thanks

    TBP

    ReplyDelete
  3. ST Sir,

    Avoided BOF of BRN (7400) at RBI news time..below are trades executed for today.

    Chart here http://imgur.com/xSzDdFT

    TRADE1:

    Long on BOF of RN (7350) at 7353 with initial SL below 7347, low of BO bar
    Moved SL to 7367, low of PDC BO bar
    Moved SL to 7375, low of PDH BO bar
    Moved SL to 7390, low of BRN (7400) BO bar
    Moved SL to 7398, just below BRN
    Moved SL to 7416, low of HOD BO bar
    Trail SL hit; exited trade at 7416 with gain of 61 points

    TRADE2:

    Long at 7389 after BOF of PDH with initial SL 7376
    Moved SL to 7390, low of BRN BO bar
    Exited trade at 7422 with gain of 31 points

    Points earned: +92


    Couple of Q’s sir..

    I am considering BO as when price closed above BRN… suppose, NF moved above 7400 and closed above i consider it as BO candle.. if closed below 7400 i consider it as BOF.. hope my understanindg is correct only, basic Q but i would confirm once.. as i am entering positions & manage trail SL also with this logic.

    Another, OOF question may be.. i am just wondering why PRICE ACTION trading is not famous in retailors.. 1st time i see this method in your blog.. no where in Orkut groups (or) face book (or) paid services (or) tech analysis training courses… ppl talk about lot of indicators, technical stuff etc.. and making trading a difficult task… where as in your method we just dont do analysis before market opens.. simply draw lines.. look for price acceptance/rejection.. initiate trade with 10 point risk n trail SL behind DP’s… how trading can be any easier than this :)

    ReplyDelete
    Replies
    1. Rose Mary
      Nice trades.
      If a candle moves above 7400 and closes there does not mean you can go long. You have to ensure that price is getting accepted at the new area. Further a lot of other factors plays a role here like Space,Order flow,trend, Critical mass etc .
      To be frank I am really afraid reading your comments and watching your trades. I never thought DP trading is so easy. I had struggled a lot with my execution for months and I know many of the early readers are still struggling to get a grip on it. I dont want to discourage you,but please,please do not trade multiple lots at least for another three months.

      ST

      Delete
    2. rose mary,
      what a great trader you are ! really mind blowing !! keep it up.(http://i.imgur.com/DuLDui8.gif ) but ur chart is not uploaded properly. we are missing it.

      Delete
  4. Hello sir,

    I am tracking your trade since last two week and read your book also very nice terminology. I have one question regarding your first trade that when you took your first trade long at BPB , was there not BRN against the momentum as resistance..? so is it viable to take entry around BRN ?? or am i missing something??

    Thanks,
    dnagrecha

    ReplyDelete
    Replies
    1. Dharmesh

      DPs are make or break levels. There is no rule that you should not trade into a DP
      Considering other factors,if you feel it may break you can very well do it. Only thing is that you must have a plan how to deal with a bounce from FTA. Assess the strength of price move and strength of DP and take an appropriate decision
      http://niftynirvana.blogspot.in/2012/11/make-or-break-levels.html

      ST

      Delete
  5. Which time frame u r using?

    ReplyDelete
  6. Hi ST,
    Nice trades. Did you seek any confirmation after BPB candle at 11:54 AM? like no of candles to be formed to enter the trade after a BPB candle Or you will enter the trade like your BPB at 11:57 AM imm after the pullback candle which went in your direction. I am facing an issue some times price get reversed imm after the entry and hit my SL and go up. Can you pls advise how to avoid such trades and what is your experience on that.

    Thank you,
    Kiran.

    ReplyDelete
    Replies
    1. Kiran
      I do not know exactly how you are entering trades.Something wrong with it I think Here is how I do it
      11.48 candle breaks above PDH next one a pull back bearish candle which closes at 11.51. High of the candle was 7388.50.Next candle fails to continue down. Now I enter a Stop Loss limit buy order with 7388.75 as trigger and 7389.25 as limit above the swing high. Next candle triggers the entry and I am on board. Immediately I enter a Stop loss below the pull back low.
      All the entries are on break of a formation like a swing point, a bar high etc with a SL Limit order.

      ST

      Delete
  7. Sir,

    Regarding your 2nd trade.. i had long position with same trial SL where you entered short.. i exited long but didnt place sell order as it is counter trend trade & also not sure if i can do this kind of SAR trades? i left the trade as i am in doubt... do u suggest to attempt trades like this?

    What was ur initial SL here.. was it 7426 or day high?

    ReplyDelete
    Replies
    1. Stop was a little above entry bar high.
      I do not SAR as I am not comfortable with it. I need to clear my mind after a trade.

      ST

      Delete
  8. Sir,

    Would you have taken long had it not been the announcement day around 7360 around 11.30 a.m. Because I feel there is no space and immediate resistance is there. Am I correct in my understanding or wrong? Pls suggest.

    Regards,

    Veer

    ReplyDelete
    Replies

    1. No. I will not go long unless it crosses PDC and PDH
      Every day candle is a powerful established range and break of these levels are major transitions
      Avoid trading into PDH and PDL if you are not very sure about a favourable order flow

      ST

      Delete
  9. Sir,

    Thanks for reply... I am trading with 2 lots only... will continue for 2 more months before scaling up... I will see if I can fetch minimum 100+ on monthly basis... may be I am in phase of "Beginners luck" :)

    ReplyDelete
    Replies
    1. Much more is possible if you manage your risk well
      Result of a trade can be
      Big Loss,Small Loss,Small profit and Big profit
      Eliminate Big Loss. Small loss and small profit will even out
      Big Profit will remain with you. It is as simple as that

      ST

      Delete
  10. PUCHU_2500,

    I can access image through link http://imgur.com/xSzDdFT

    ReplyDelete
  11. Hello Sir
    I am new to Price action trading.
    I recently completed reading your book.
    Would like to clarify regarding a possible FTC today around 12:20.
    NF tried to break HOD on a retry around this time. Can it be considered as a FTC?
    If you were not holding the long position would you have considered initiating short below the swing low of 7415 or
    since it was not very far from 7400 (BRN) short was ruled out?

    One more question?
    Which of these would you give more importance to? NS or NF breaking BRN?

    Thank you,
    PK

    ReplyDelete
    Replies
    1. We are trading Nifty Futures and Trade levels of NF
      We are just monitoring option strike levels of NS for trade management only
      There was a FTC signal there. Nothing wrong in going short here target as BRN
      FTC is a counter trend trade and go for it only on trend exhaustion.

      ST

      Delete
  12. Sir good morning , sir sent a mail when time permits kindly check thnx

    ReplyDelete
  13. Hi,

    Sorry for the off-topic, but what i saw here and from other forum/blog is people are not focusing on their career they just wanted to earn money from gambling not from hard-work and dedication. people are now spoiling their career as well as their social life and sir people like you encouraging them instead of inspiring them to do some hard work.

    ReplyDelete
    Replies
    1. A Smith
      I beg to differ sir.
      Many professions that looks useless and self centric on the surface are not like that. Unfortunately people are not aware of their contribution to the society. For example Alchemists of the early centuries were experimenting to convert base metals to gold and they were subject to ridicule. But in the process they developed research base and made contributions to Chemistry, Physics, Mathematics and modern medicine.

      We contribute Rs 60/- to the national exchequer on every trade we take with a single lot of Nifty as taxes like STT, stamp duty, etc.Another Rs 50/- goes to support the broking industry and exchanges where tens of thousands of people are employed directly and indirectly.Further we support ISPs, data providers and chart services in the process. Again 30% of our profits goes to the government as income tax. When we make losses we are not getting compensated from PMs relief fund.

      We provide liquidity in the markets. Without liquidity in markets who will own and invest in stocks? How can corporates raise funds? where the economy will head? The whole capital market is depended on traders to thrive. People like you may call us greedy gamblers but we don't mind


      Delete
    2. Dear ST,
      Very well said. Thank you.

      Delete
    3. Hi ST,
      Very good explanation for the question. Thanks ST once again on behalf of our trading community

      Delete
    4. A Smith,
      Why do you think making money by trading stocks doesn't require hard work. If some one has to gamble he will gamble anywhere its not the problem of profession its problem of individual.

      Delete
  14. HI ST,
    Is it possible to download your important post with comments in pdf format.

    Thanks

    ReplyDelete
    Replies
    1. Nirtos

      Sorry. i am not aware of any such tools

      ST

      Delete
    2. 1. If you can do it manually, you can use print to pdf using tools such as CutePdf in windows. Linux should already have it by default i think

      2. Once in a while You can also download all pages using a website downloader tool. It will download files in HTML though.

      Delete
  15. Hi ST

    A very big chunk of grapes gone sour I guess.

    TBP

    ReplyDelete
  16. @ ST sir ......tussi great ho ......
    good ans. to mr. smith .....

    really nice sir ....

    ReplyDelete
  17. Sir,

    Are you not in station. By the ms.Rose Mary how did you do it to-day. It is totally range bound. Your chart will be educative.

    Regards,

    Veer

    ReplyDelete

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