Nifty opened near PDL/PDC. IR formed. Short below PDL as bias was bearish. Price broke BRN but failed to continue. Covered the trade when second push down failed. As expected Nifty traded in a wide range with PDL and BRN in between which acted as barriers. BPB od PDL short moved to LOD as expected. BOF of BRN long trade stopped out below BRN 7600
There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Wednesday, July 9, 2014
09072014
Nifty opened near PDL/PDC. IR formed. Short below PDL as bias was bearish. Price broke BRN but failed to continue. Covered the trade when second push down failed. As expected Nifty traded in a wide range with PDL and BRN in between which acted as barriers. BPB od PDL short moved to LOD as expected. BOF of BRN long trade stopped out below BRN 7600
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ST Sir,
ReplyDeleteCouldn't capture gains in today’s volatile session.
My 1st trade went into profit of 50 points, but i missed to book.. i observed, i am turning clueless, where to place trail SL.. if there is no DP around.. this trade is one such example.. seems your exit is most logical one.. thanks for this learning!
Stayed away, after seeing multiple false BO at PDL.
Trades here
You did not notice BRN 7600 and NS BRN 7600 around 7620NF
DeleteI think you could have managed much better, if you did.
Failure to continue beyond the earlier extreme is the first sign of weakness
ST
NS, i havent used for trial SL so far.. but, 7600 NF.. yes i missed to notice.
DeleteHi ST
ReplyDeletePrice had visited both the extremes ( LOD and HOD) by 11:24. Can we consider PDL as a defunct DP once that happened? So, can we trade only the extremes neglecting PDL??
Thanks
TBP
You can trade the range extremes.
DeleteBut the DPs in between will still continue to influence price. This makes trading difficult
You need to execute at the extreme and sit tight with the initial stop
ST
Hi ST,
ReplyDeleteStarted with my personal trade journal here...trading-nirvana.blogspot.com..:)) all thanks to you and RM to bring some discipline in my trading .. :) no trades yesterday and today.. waiting for this Budget to get over, cant risk my budget with this :P
Nice One
DeleteAll the best
ST
ST, Whats your advise for tomorrow? Should we trade? Or should we trade after the budget only?
ReplyDeleteThis method usually do not work well during such situations
DeleteWe need day traders in control and not news traders
I will prefer to stay out till everything stabilizes
ST
Hi ST,
ReplyDeleteMy chart,looks a lot different, especially the pivot where you exited the first trade does not exist for me. http://i.imgur.com/hGbzPKz.png The second trade my order was skipped , where did yours fill? My order was SL 7616.15 - 7615.15 As luck would have it, the third trade got filled :D wish that was skipped instead. I also took a trade below 12:06, was it totally brainless trade on my part?
Exit the trade above BRN. Always there will be difference in charts
Delete7617.75-7617.25. it got filled for me.Last trade cant do anything.
12.06 trade the space was very less at 10 points. So I skipped
ST
Thank you ST. Is 20 points the space that you normally look for?
Delete20 point is ideal as we are getting 1:2 RR
DeleteIf you anticipate a lot of stop triggering
or the trade is with the trend
or it is a powerful BOF
or the Dp is weak
you can attempt even if it is very near
ST
ST
ReplyDeletegood evening today again i traded at PDC booked at 2nd green candle it was too fast then placed at days high it never hit then again on PDL booked after 20 points thanks ST for such nice system and simple technique.
I am still learning this type of trade
It may take a while to get the thought process right.
DeleteThe struggle is worth it and this will give you an enduring edge in the market
These levels work because they are markets own levels unlike some SMA,EMA,Pivot,and Fibos
ST
Hi ST,
ReplyDeleteI took long trade (V shape) BOF of BRN and exited at RN. My thought process was Critical mass short and try to exit above BRN it create opposing orderflow also fluid zone and powerful DP to initiate trade. Was this valid thought process. Looking for your valuable feedback.
Regards
Arun
Nothing wrong
DeleteThere was no follow up buying after it
We cant do anything other than exiting without damage to the account
You did it well
ST
ST,
ReplyDeleteJust curious to know, is the RN a powerful DP coz now we have strikes at those levels too ? or any other factor ?
GK
I was only looking at BRN earlier
DeleteAfter the introduction of xx50 option strikes these levels have increased prominence
Usually I look at RN for trade management only. Not for entries
But you can consider these levels if they establish as range extremes like today
ST
You mean to say, when they are also nearer to other DP's they make more logical ?? like RN/PDL RN/PDH, RN/PDC etc ??
DeleteYes. A confluence of many factors make the levels more prominent
DeleteST
ST, Can you please explain the reasoning behind taking your second trade, the BPB of PDL? Price was rotating around the PDL. Infact there was a similar BPB opportunity at around 12 PM, which didnt work. But the one you took , worked. I wanted to understand the difference between the two situations. Thanks
ReplyDeletePA Trader
DeleteSignal wise there is no difference between the two
Price tried to move above 7650 for the third time. Bias was bearish
So I expected a move towards LOD and if lucky further by market close. If price fails to do something repeatedly and fails , you can expect it to do the opposite at least for a while.Here you can very well short the TST of HOD with a very low risk. But psychologically it is difficult. Hence waited for the break of PDL
ST