There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Wednesday, August 5, 2015

05082015

Nifty moved above PDH after open and stayed within a tight range all the day. tried a short on BOF of Range high. Scratched.
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22 comments:

  1. xrtrader1August 5, 2015 at 5:08 PM

    Hi ST,
    a> Was there a BO Trade between 9:45-10:30. When the Bar went above 8600 ? Reason for not taking
    BRN is quite strong level, will require lot of order flow to break. So avoid taking BO near BRN is my understanding correct ?
    b> What was the reason for not taking BO trade where you took BOF trade.

    ReplyDelete
    Replies
    1. SMART TraderAugust 5, 2015 at 6:38 PM

      No I had a buy order above BRN. I waited for more than half an hour for it to trigger because there was no momentum.
      So cancelled the order and looked for a BPB or a BOF at the lower side of the range.

      ST

      Delete
  2. Uday DaveAugust 5, 2015 at 5:16 PM

    Hello ST sir,

    I thought someone would ask, let me ask, why did you avoid BO of RH? I thought it took too much time consolidating in the narrow range and my understanding is that if it the range prolongs too much, most likely prices will reverse. So I was looking for BOF of RH and took the trade once it happened. Your thoughts please.

    Thanks.
    URD

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    Replies
    1. SMART TraderAugust 5, 2015 at 6:48 PM

      Usually I prefer two types of BO trades.
      1.BO of IR with momentum to board a trend move earlier
      2.PP where a lot of traders get trapped.
      I skipped morning BO of BRN as there was no momentum. Avoided BO of range high as I felt very few shorts created in market since morning. Price never broke the fist swing low for day traders to enter short. Critical mass was not short

      ST

      Delete
    2. xrtrader1August 5, 2015 at 6:55 PM

      Hi Dave,
      Similar PA as today. But different result.
      http://niftynirvana.blogspot.in/2014/01/13012014.html

      Delete
    3. SMART TraderAugust 5, 2015 at 7:16 PM

      Market was extremely bullish then. Look at the previous day chart
      Price climbed above the last range 6225-40 and failed to stay there. A sell off happened. Next day morning itself price climbed back to this higher area and even a BOF at PDH could not bring price below 6240.Market will give many subtle clues but we fail to read this most of the time
      http://niftynirvana.blogspot.in/2014/01/10012014.html

      ST

      Delete
    4. UnknownAugust 5, 2015 at 7:34 PM

      I took CT BOF short around 1020, considering that it failed above 8600 and it was a supply zone you didnt consider this possibility ?

      Delete
    5. xrtrader1August 5, 2015 at 7:51 PM

      Hi ST,
      "Price never broke the first swing low"
      http://i.imgur.com/SB6TPKo.png is my understanding correct.

      Delete
    6. xrtrader1August 5, 2015 at 9:18 PM

      Thanks ST... Lot to learn.. I should work with historical charts many times

      Delete
    7. SMART TraderAugust 5, 2015 at 10:04 PM

      Naveen

      Your entry was right and it went where it was supposed to go.
      Being a discretionary method we will not be able to take all entries. We hesitate second guess and fail to act.
      Further we will fail to notice many clues. Perfection is impossible in this gave

      ST

      Delete
    8. SMART TraderAugust 5, 2015 at 10:11 PM

      Xrt

      Your understanding is correct.
      Some people get trapped there. But not enough to trigger a momentum move in the opposite direction
      Further people are trading different methods. for example those who entered on BO of BRN may not exit below the BO bar. They keep SL below 8580 only. They will continue to hold

      ST

      Delete
    9. xrtrader1August 5, 2015 at 10:30 PM

      Thanks so much ST.

      Delete
    10. TrekkieAugust 6, 2015 at 8:27 AM

      Hi ST,
      Good Morning, please can you explain why you thought the 10:20 short by Naveen will not break the lower DP. It was a BOF of BRN, would it not move beyond the lower DP? Thanks for your help.

      Delete
    11. SMART TraderAugust 9, 2015 at 9:26 PM

      Logical target is the range low. Further move is just a bonus
      Price is in rally mode and counter trend moves will fizzle out sooner than we expect

      ST

      Delete
    12. TrekkieAugust 9, 2015 at 10:32 PM

      thanks a lot ST.

      Delete
  3. xrtrader1August 5, 2015 at 5:39 PM

    One more question ST on Critical Mass: it is very difficult to consider Critical mass in morning session. How to deal with it? especially during first hour ?

    ReplyDelete
    Replies
    1. SMART TraderAugust 5, 2015 at 6:52 PM

      http://niftynirvana.blogspot.in/2014/11/more-on-critical-mass_22.html
      In todays session critical mass was neither short or long. that is why the BOF of Range high and low did not move beyond the other extreme

      ST

      Delete
  4. TrekkieAugust 5, 2015 at 5:39 PM

    Thanks a lot ST.

    ReplyDelete
  5. UnknownAugust 5, 2015 at 5:56 PM

    Hi ST,
    Was it correct to short just above the BRN? Thanks.

    ReplyDelete
    Replies
    1. SMART TraderAugust 5, 2015 at 6:58 PM

      Here it can be done as the range high is above BRN.
      But better to avoid trades into DPs unless there is sufficient space

      ST

      Delete
  6. TrekkieAugust 6, 2015 at 3:57 PM

    Hi ST,
    please can you let me know if these three trades are correct or wrong(One short and two longs)

    ReplyDelete
  7. TrekkieAugust 11, 2015 at 3:41 PM

    Hi ST, please post today's chart. Thanks a lot

    ReplyDelete

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