31072012

I was not watching the market live today. My analysis is based on bar by bar analysis I follow to analyze historical charts. Being a major announcement day I will not trade till the announcement is over. First signal was a good long trade. . BOF of a MSP from where an impulse wave started yesterday. This move acted as a range today.  BOF of HOD stalled at PDH. A scratch trade. Today the Market ignored the BRN 5200.

" Defense is not only the best offense in this business,it is the only offense that works",  Mike Reed

30072012

Nifty gaped up within previous day range. Almost all the day it moved quietly in two different ranges. There were only two reliable signals. BPB of PDH and BPB of BRN.. The seconed signal came very late.

Feedback

I have received a few specific comments and suggestions as feedback Thank you very much for the response. I am reproducing these comments and my response to it in Red 

your analysis is very objective and factual. it is educative. over a period of time, we will be able to learn market well and get profits. Pl keep going. If possible, evlaute bank nifty as well atleast on a weekly basis.

I focus on Nifty Futures 3 M chart. There are reasons for that

coz i want to become rich before him.. heheheh

Liked your humor sense.( He is not willing to recommend this blog to his trader friends)

Excellent blog for new as well as matured traders. The daily updates are short and to the point. Please include the mail feed on your blog.

Thanks, will do that

Kindly do not let yourself down, even if you are not seeing any comments, blog is reflecting your ideology... I mean this as you want to share your ideas to the trading community..... Thanks for good work & sharing, All the best

Thanks. In the beginning I was upset with some comments. Now I don’t care.

Feel that there are lot more things to learn from you.

Thanks. I am happy that you find these rants useful

I have already recommended to my friends... and we use to discuss your commentry on charts...

Yes. That is the way to learn. If you are willing to take effort, you can tweak and make your own system.

Hi ST, I learnt a lot from your blog on DT. Keep up the great stuff. I dont comment much as i try to imbibe and action on it. thanks for sharing with us.

Thanks. I am happy that you find this method “Actionable”

Pls add a performance excel with the reason for trade abbv.

This is a discretionary method and the ultimate result will depend upon the market knowledge and experience of the trader.No point in performance evaluation

could you also share your experience with stock futures, and the difference in trading of stock futers vis-a-vis nifty future

Stock futures, barring a few are illiquid.Their movement is influenced by market as well as sector sentiment and is more difficult to trade.

A list of abbreviations visible on sidebar will help a lot.

I have designed the blog without the side bar so that readers can view bigger chart. I have removed all the rarely used ones. Now there are very few and there is no need to refer frequently.

definately for newbie it is a swarg

Thanks

More detail on BOF and BPB and how to distinguish between these two.

I will make a separate post on these patterns soon

Can you please mention the entry and exit points with some more clarity. For example, in BPB, whether you enter the trade near break out point while the pull back is still going on or after the price tested the break out area and reversing in the direction of the break out. Will you wait for the bar that tested the breakout point to be negated. Sometimes, the pull back may not come closer to the break out point. In this case will you skip the trade or any other criteria to follow for entry. Thanks in advance

Give me little time. I will make a separate post and clarify these points

Exit First

I am a short time frame" Discretionary Trader." I trade for income and not for capital appreciation and I am trying to earn my daily bread from the market.

Like "System Traders", I cannot bet on the probabilistic nature of a system and can’t afford draw down while waiting for the probability to work in my favor. My goal is to manage the day’s opportunities as good as I can. My edge is minor demand and supply imbalances that occurs in the market frequently and give  a 15-20 point move within the next 15 minutes. These moves could be just “NOISE” for many.

My trading revolves around Decision Points. Entries must happen at these levels where a demand and supply imbalance existed earlier. These are proven price levels and I expect the imbalance to be there again. My entry is mainly based on my “read” of the market and my “feel” for the price action at these Decision Points.

I always decide upon my exit before I enter the trade. When the price approaches and reacts to a Decision Point, I identify a point where price should not go if my expectation is correct. I will try to enter as close to this point as possible. Risk is reduced by making my entry close to the stop and not by placing the stop close to the entry.

In my scheme, unlike in the dictionary, “Exit” comes before  “Entry”

27072012

Nifty gaped up above PDH. and drifted down . I was expecting it to find support at PDH. It reversed earlier and did not give me a chance to go long. FTC at  HOD gave a short opportunity. TP at LOD/IR Low. I went long at the BOF of LOL(Layer Over Layer) . I expected it to break the FTA(First Trouble Area) , but reversed and stopped me out.BOF of BRN gave a long signal which gave little profit.

Reading :Kill the Market

Day trading in financial markets is posing regulatory challenges, and the capital market and commodity futures market regulators are considering a higher degree of rules on these.

The global body of regulators, The International Organisation of Securities Commissions (IOSCO), had recently conducted a survey of emerging economies’ financial market regulators. It had concluded there was a need for regulating day trading activity in a better way, as unregulated or loosely regulated day trading could pose several challenges

 IOSCO has said, in its recommendation note to regulators highlighting potential risks of day trading, that, “Day traders enter into short-term positions and are leveraged. They also use a variety of trading strategies like momentum strategy, contrarian investing, index arbitrage, statistical arbitrage, merger arbitrage, range trading, scalping, etc.” It further said day traders impart liquidity to the market but day trading combined with high frequency and algorithm trading might lead to market integrity concerns.

 When asked, a spokesperson of the Securities and Exchange Board of India said they were studying these recommendations.

Read More In Business Standard

SEBI, Now you can bring some dumb regulation and kill the liquidity starved Market