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.
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.
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.
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
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
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
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
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.
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 ?
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
Hi ST,
ReplyDeletea> 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.
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.
DeleteSo cancelled the order and looked for a BPB or a BOF at the lower side of the range.
ST
Hello ST sir,
ReplyDeleteI 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
Usually I prefer two types of BO trades.
Delete1.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
Hi Dave,
DeleteSimilar PA as today. But different result.
http://niftynirvana.blogspot.in/2014/01/13012014.html
Market was extremely bullish then. Look at the previous day chart
DeletePrice 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
I took CT BOF short around 1020, considering that it failed above 8600 and it was a supply zone you didnt consider this possibility ?
DeleteHi ST,
Delete"Price never broke the first swing low"
http://i.imgur.com/SB6TPKo.png is my understanding correct.
Thanks ST... Lot to learn.. I should work with historical charts many times
DeleteNaveen
DeleteYour 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
Xrt
DeleteYour 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
Thanks so much ST.
DeleteHi ST,
DeleteGood 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.
Logical target is the range low. Further move is just a bonus
DeletePrice is in rally mode and counter trend moves will fizzle out sooner than we expect
ST
thanks a lot ST.
DeleteOne 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 ?
ReplyDeletehttp://niftynirvana.blogspot.in/2014/11/more-on-critical-mass_22.html
DeleteIn 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
Thanks a lot ST.
ReplyDeleteHi ST,
ReplyDeleteWas it correct to short just above the BRN? Thanks.
Here it can be done as the range high is above BRN.
DeleteBut better to avoid trades into DPs unless there is sufficient space
ST
Hi ST,
ReplyDeleteplease can you let me know if these three trades are correct or wrong(One short and two longs)
Hi ST, please post today's chart. Thanks a lot
ReplyDelete