Happy New Year

Wish you all a very happy and prosperous New Year

30122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Market was very choppy. Tried two trades one short and one long. Both the trades failed.I stayed with the first trade for a long time with the initial stop loss. But it moved after stopping me out above BRN. Second trade was into too much of traffic and could have avoided. Price was in a  wide BW during the second half

29122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty opened near PDH and went up 50 points without a pull back. could not get the move. Short on BOF of range high covered when price refused go go below NS RN. Tried a long and scratched as price did not move as expected. No other trades as price remained in a tight range

24122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Could not trade today and yesterday. My computer is having some memory problems pertaining to old age.The service person is on Xmas leave.So I will be back only on Monday. Today being expiry day market gave two opportunities . Breakdown below RN 8250 and later a BOF of the level. The analysis is on hind sight and is based on option strike levels.

High Low Range

Market volatility is an important factor that determines the profit potential of a day trader. You might have noticed that sometimes Nifty gaps up and spends the entire day in a tight trading range, making day trading very difficult. Further a volatility measure is very much required for knowing what kind of a move to expect and to decide where to book the profits ones you are in a trade..

Markets are cyclical and alternate between high volatility and low volatility. We are going through a high volatility phase. This is temporary and will pass.People generally use ATR as a proxy for volatility. But this measure includes gaps and is not a very true measure from a day trading point of view. High Low range or intraday range is a better proxy of intraday volatility.

Sunil Saranjame of Indian Market Monitor regularly tracks many Market Internals like H-L Range and relative strength. He has made a post on HL Range this week.Please do not ask me to explain more. SS will be the right person to do it Click here to read the post

22122014

 This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty opened within previous day range. IR formed. Long on BOF of IRL. It was trailing all the way to 8340.Glad  Nifty celebrated the successful GSLV launch. Sadly our media was busy discussing terrorism and conversions.

19122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped up above PDH. Did not attempt the break of IRH as it was below RN. The next big bull candle acted as a MC and became range of the day. There were RN and NS RN in between. Tried a short trade but it did not move well. Scratched.Adapting to the volatility is the main issue with Day trading

18122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped up above PDH on global cues. Went long on BPB of PDH. Trade failed. exited when it came below RN. I was looking to go long . Price gave a good BOF at PDL. Covered when price stalled at 6180 for a long time. No other trades today.

17122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty opened below PDL Tried to go up and got rejected from PDC. Shorted on break of IRL. Covered on FTC at 8020. Could not get the long trade. Tried a short on second test of BRN. Trade did not move as expected. Long on BOF of range Low. Covered when price failed to stay above BRN. Then it was a chop inside the range.Very difficult to manage trades within the risk level due to high volatility

16122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped down below PDL against expectation. Went short on BPB of PDL. BRN was a concern. But after a while it gave way. Covered when price came back above RN. Then price got resisted at MSP. Another short when price failed to move above this high. Again covered above RN. Nifty gave another short signal at range high. BOF of range high. Covered when price bounced from BRN.Then tried a long and stopped out quickly

Disclaimer

This blog is for educational and general information purpose only. The information contained in the blog should not be construed as research report or financial advice.

 

I am not a research analyst registered under the SEBI( Research Analysts) regulation 2014 and not authorized to give any financial advice. Information contained in this blog should not be used, relied upon or treated as a substitute for specific or professional advice

 

Information on this site is general in nature only. The content is only general discussion on broad based index Nifty and technical analysis relating to the demand and supply factors. 

 

I do not make any buy /sell/hold recommendation or give any price target. Charts published in this blog are only illustrative examples of the concepts discussed here and are simulations on historical data in hindsight analysis

 

These simulated results do not represent actual trading and these trades have not been executed in live market with real money. They are identified with the benefit of hindsight and no representation is being made that real trading using these concepts will or likely to achieve results as shown

 

Any reliance you place on the information contained in this blog is therefore strictly at your own risk. I will not be liable for any damage or loss, direct or indirect incurred using the information contained in this blog

15122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped down and refused to go below the first bar. Nifty Spot touched 8200 the earlier flip and bounced.I thought it may reverse today. But it did not happen. Last down impulse held as a range. Took two BOF shorts of PDC/PDL LOL levels. Covered them when it bounced from RN. Skipped the last one as I was not confident as price has started making higher lows

12122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty opened near PDC. First candle acted as IR. Short when second time price failed to move above IRH. Price got trapped between IRL and PDH for a long time. Covered on BOF of PDL. Strong BOF of PDL could not take price above IRL. I had a buy order above IRL which did not trigger. Shorted the break below PDL. Exited too early when price bounced from BRN and missed the last leg of the down move

11122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis

Nifty gaped down near PDL and sold. could not capture the down move. There was a FTC pattern at the bottom. Avoided it. Went long on TST of LOD. .It retraced the entire fluid. TP near PDL. Short on LOL BOF of PDL/HOD. TP at 8340.

10122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Most of the time price traded within yesterdays closing BW range. All the attempts to break this range failed. No trades today. Did not take the BO PP of range high

09122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped down below PDC/PDL. Price did not pullback to PDL at all. Shorted the TST of range high. Covered when a BOF happened at range low which was also RN. Short below range as PP which was already tested 4 times earlier. Even earlier BOF failed to move price more than 10 points to the upside.Covered on FTC below 8420.Immediately there was a TRAP to go short again. Hesitated to take it and missed.Rest of the day it was a BW around BRN. Can we expect a fall to 8200?

08122014

 This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
I was not trading today. Nifty opened near PDC/PDL and bounced. There was no follow up buying and fell below PDL. One can short this breakdown. Market gave another TST also. Finally gave a PP. 4 touches at the range low and each rejection made a lower high. Last bounce was a minor TRAP. BOF of BRN did not work

05122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
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

04122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Nifty gaped up above PDH. There was too much of volatility. Could not go short as there were many levels like PDH BRN and PDC. Long on the second test of LOD after BOF. Covered when price failed to move above PDC. then there was a TRAP pattern. Entered above PDH as PP. Covered at HOD

03122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Another choppy day. Nifty opened near PDC and sold. Went long on BOF of PDL/RN. It was an entry without confirmation on retest. Covered when price failed to move above PDC. Went long again on the BPB of PDC and DO. Expected a move to PDH. Covered on FTC at 8590. Price fell and found support at the strong flip at 8570. Shorted the break as PP. trade failed to move. Stopped out. No more trades. Nifty within 8550-8600 range for two days. Ripe for a break.

02122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Announcement day. No trades till it is over. Short on BOF of PDL/PDC and BRN. Covered around 8560 as price bounced from RN. Long when second test of RN held. Expected a move to PDL. Covered when price bounced from the flip @ 8580. Hesitated to take the TST of Range low. No more trades

01122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Market was too choppy and did not respect any levels well. Got stopped out in all the three trades. First one was a BO of IRL into a fluid. Stopped out. Later attempted a long and short . both the trades immediately failed