Nifty opened within previous day range and sold.The first candle was wide and this MC acted as IR. There were BRN and PDC in between and made it a Barbed wire. I ws looking for a signal at PDH and price turned from DO. Went long on BOF of IRL/LOD. I was waiting for a TRAP and up move like yesterday.The opposite happened.Covered when the break above the early swing highs failed. Missed the short trade. It was a good short below BRN. There was 10 point space below it to FTA ,LOD and a 10 point fluid below that.Many of the positional longs created yesterday covered due to weekend.Yesterdays entire up move retraced
Hi ST
ReplyDeleteIf you would have shorted, after the prior TP, how would have you entered?? A limit order just below BRN?
Thanks
TBP
Usually I enter below BRN. Break of that small range low
DeleteST
Hi ST, Thanks for the chart. what gave you the confidence to go long on BOF of IRL. BRN was just 5 points away, What is the thought process at that point?
ReplyDeleteI bought at 8591 without confirmation. SL at 8586 @ 5 point risk
DeleteIn a range we try to buy the lows and sell the highs, whether it is IR or BW. Let it reverse from BRN.
After the green candle SL moved to 8589, the candle low with 2 point risk
ST
Thanks a lot ST.
DeleteHi ST,
DeleteTrying to correct my thinking process for entry, exit so I can balance between taking incorrect entries and taking late entries. If we enter without confirmation then we will not have two layers of defense. Under what circumstances would it be ok to not have the two layers of defense that we usually look for? Thanks for your help.
We trail a trend and fade a range.
DeleteDecision should be based on two thinks
1.Strength of the DP
2.Strength of the trend
We have discussed this in earlier posts. If you feel the DP will hold as per your reading of these factors, do not wait for confirmation. Otherwise wait, watch and enter after confirmation
ST
Thank you ST for reminding me of this again. Somehow I forgot to include this in my analysis except while taking PP. I will add this now, thanks again.
DeleteHi ST,
ReplyDeleteCan the pattern in the end (to short below BRN) be considered as TRAP?
Thanks and regards
Yes. If you look closely market was making lower highs all the day.
DeleteI was focusing on the range and considered move from LOD as an up move
Hence missed it
ST
Same with me. But I had a late entry above BRN after confirmation .. and did not scratch .. but stayed with my SL of 2 additional points. I think was worth staying given the possibility of upmove. Any thoughts?
Deletehttp://niftytradediary.wordpress.com/2014/12/06/5-dec-2014-listen-to-the-beast/
Of course the results speak for themselves; ended up on the loosing side :)
Ultimately trading success will depend on our ability to read and feel the market
DeleteThis feel will not come unless we continuously pay attention to all these small stuff.
We have just started and is on the right track. Hope you might have read
http://niftynirvana.blogspot.in/2012/02/chicken-sexing.html
ST
Indeed I read that article and I agree....
DeleteHope to stay the course on the right path .. your guidance during this phase is invaluable. Thank you.
ST,
ReplyDeleteCan we take direct short in first bar as it was breaking BRN and yesterdays close ? i trapped there. Why you avoided short below 12.24.. wasnt that a pressure play at BRN.. mkt traded there for more then two hrs. shouldnt we attempt direct breakout ? fluid below it.
Regards
Bharat
I do not enter on first bar. If initial volatility is very high, i stand out till it settles down
DeleteIn a range we buy the lows and sell the highs. Market is coming back to test a solid support for the first time
You can expect a bounce from there.Zoom out your chart and draw a line at this range low 8590. See what happened there on last three days
ST
Thanks ST.
DeleteSir good evening,sir some days you have updated that when mkt fails to do something twice,it will do the opposite,as since morning price was unable to brk the DO ,so the fall from 8610 can become valid on this analysis,kindly update thnx
ReplyDeleteIt cannot be viewed as a stand alone signal. Double tops and bottoms usually work in markets
DeleteWe cannot say how far that move can sustain.It works because when market fails second time, some traders lose hope and start exiting
ST
Sir thnx
Delete