07062013

Nifty gaped down and attempted to break BRN. BOF of BRN gave a long signal. TP at PDH. Price broke PDH and there was a BPB signal. Skipped it as Critical Mass was long. Went short on the BPB of PDH to the down side. Sudden bounce from the PDC scared me, but stop was above PDH. Covered the trade when price again fell to PDC. Could not get any reliable signal for the final down move.

06062013

Nifty gaped down and broke PDL. I thought of shorting below the first bar but hesitates as I expected some consolidation after such a gap. But when Nifty broke the swing low I tried a short and had to scratch it. BPB of BRN/IRH gave a long . This gave around 20 points.Shorted the BOF of PDH. I was concerned about PDc but the Fluid 5950-30 gave confidence. Price moved to the swing low as expected.

05062013

Nifty opened just below PDL. Did not short the BPB of PDL as BRN 5900 was very close.Skipped the BOF of BRN  also. But this trade moved very well without me.Shorted the BOF of PDL. TP at BRN. DB TST of BRN gave a long signal. Nice move up TP at PDC. Another short on the BOF of HOD. But price did not break the range low Scratched.

04062013

Nifty opened just below PDC and spiked. Formed a wide initial range. There was no space for a channel move with BRN and PDH very near. Short on BOF of IRH. Did not move as expected . Scratched. Thought of going long on BOF of  swing low. but was not confident to trade into a  prominent flip zone 5980 and the market proved me right.Missed most of the down move. Short was late on the BPB of DO/IRL. TP at PDL

03062013

Nifty opened within previous day range. Broke below PDL, but did not extend beyond BO candle. IR formed. My expectation was a Barbed Wire around PDL. Two attempts to go above PDL and BRN failed. Hence went short on the break of IRL.. Next trade was a BPB of range low.Shorted below the MC.. Whole day market was grinding.

Burn the Chart

Do we really need charts to trade?  I don’t think so. Charts are just pictorial representation of the underlying data. Live auction markets produce streaming data and we cut and chart it for our convenience. There is nothing magical about the charts and chart patterns.

There is a misconception among the traders, especially beginners that their success as a trader will depend on their chart reading skills. They spend count less hours perfecting their chart reading skills and waste their time on identifying patterns where none exists.

Markets move up and down for a reason. Unless we understand the Reality of the Market, no amount of chart reading skill is going to make us consistently profitable. Only the horizontal price levels are important in Markets Everything else is just illusions.

Look at the picture. It is the 1M chart of NF on 31-05-2013. Immediately after the open there was a BPB trade opportunity. I have given the raw data along with the chart.. We can see from the raw data that in the seconded minute nifty broke below BRN and made a low of  6095.40.Then there was a pull back and price failed to go below the earlier low for the next three minutes.. Price attempted to move above the BRN. Now we are ready to short if price falls below 6095.40 with our orders. Next minute we are in.

Before the introduction of computers and live charting the good old tape readers were doing the same thing. They were interpreting the raw data. Thank God. Everything is much easier now.

You do not need the charts to trade. Burn them. But ensure you can read the raw data before you do it.

While posting the link I found out that this one is my 100th write up. Now there are 65 under "Rants and Raves" and  35 under "Structure and Patterns". I really wonder how long I can continue writing on such a small subject. Frankly I do not know if anybody is getting benefited .I hope at least one will.