Friday, 30 May 2014

30052014


Nifty opened above PDC but sold off.  Initial move was down.
1) BOF of DO IRH as bias was negative.  Covered at 17 points of profit when it bounced from the low of 21052014.

Missed the up move.
2) FTC HOD, BOF of DO IRH.  Covered at 18 points of profit
3) Sniper Shot trade below RN. Target was LOD.  Achieved.  Profit of 11 points.
Missed the last down move.

17 comments:

  1. hi, i have doubts
    once a dynamic DP like IRL or IRH broken up and down , do u ignore them for next price action?
    and will u ignore tails ? if yes why?

    ReplyDelete
  2. Hi Chandra Mouli

    Thanks for the comment.

    It is not about ignoring it. It has to prove its relevance.

    I will go into some details. Today first two candles made initial range. Fourth candle broke the IRH/DO but could not sustain and immediately came down and broke the IRL. Here IRL was just a point above PDL. Price again got rejected at lower level and gave BOF of IRL/PDL/RN. Now we have new range, i.e. from HOD to LOD of 52 points. This big range has enveloped the initial range. So initial range loses its relevance. So next time we will look for trade opportunity at these extremes, i.e. at HOD and LOD and not the IRH and IRL Still sometimes price may react at IRH and IRL and they can act as support/resistance. If price behaves like that we need to take that in consideration, else ignore it. Always try to trade at range extremes.

    Regarding tails, I have learnt it from the ST to ignore it when we try to mark the range. Again we need to see the price acceptance or rejection at the range/DPs.

    Hope I could help you clear your doubts. If still any queries, let me know.

    ReplyDelete
  3. Thank you soo much now im clear abt the concept.
    im newbee and im learning price action trading.
    do u have trading plan or a thinking process throughout the session

    ReplyDelete
  4. CM
    I am also still learning it. ST is the master of it.

    I just put first all DPs on the chart, then zoom out the chart and mark the significant turning points. After that I just wait for the price to reach the DP/range. Once it reaches the DP/range and reacts, I wait for the pattern to develop like BOF, BPB etc keeping in mind the SCORE. I do not keep any predefined target. I mostly book it out when I feel it is not moving as expected.

    Thanks.

    ReplyDelete
  5. Davebhai,

    At what point we decide that the brekout of the opening range 10.48 was failing and its not a pullback to move ahead.?I m mostly confused when the move starts from inbetween the range. .. Whats should be the thought proces. when dps are not around inbetween the range. like today.. ?

    Bharat

    ReplyDelete
    Replies
    1. Bharat

      There are two ways to know that BO is failing. One is if BO candle's low gets broken and second is if it breaks swing low or comes back into the range and settles there. Here I presumed that BO has failed when it broke the BO candle low.

      Try to avoid trading the moves which are in between the range. Try to trade the range extremes. Note that my trade number one and two today are taken at range extremes. I avoided trades which were not at extreme.
      Thanks.

      Delete
  6. ok what do you mean significant turning points? can u give an example please

    ReplyDelete
    Replies
    1. CM

      Significant turning points mean the area from where price reversed. Note that I have marked in the above chart low of 21052014. Zoom out the chart and see the significance of it. Price got reversed from there.

      Delete
  7. Dear URD

    What do you mean by SS trade ? Pls explain.

    Regards,

    Veer

    ReplyDelete
    Replies
    1. Veer

      SS trade means Sniper Shot. ST from Nifty Nirvana has defined it very well in his blog. Please go through it.
      Thanks.

      Delete
  8. Hi URD,

    Who is your broker? how many points reqd for brokerage? I am using SAS online? 1.75 points reqd for brokerage.

    www.nsemcxpriceaction.blogspot.in

    ReplyDelete
  9. Hi NPA Trader

    I am trading with Ventura. Total cost for one nifty lot comes around Rs. 105, around 2.1 points. I know their brokerage is slightly higher than other discount brokers but I am comfortable with it. What is your experience with SAS online?

    Thanks

    ReplyDelete
  10. my broker is a full service broker and charging 3 points per lot both buy and sell, i know its more than any other discount broker
    but im getting exposure 4 i.e at current price need around 9000 per lot, im staying bcoz of exposure is less than other discount and full service brokers i think.
    wats ur suggestion abt this?

    ReplyDelete
  11. CM

    If you want to do only intraday trading Zerodha would give you the same exposure, around 10000 per nifty lot. Inquire more about with them. We as a trader should always prefer less expenses.so try to find as low brokerage as possible.

    ReplyDelete
  12. Davebhai,

    Thanks a lot for your valued guidance.

    Why do we avoid trap entry to long above 11.12 candle.. last swing low broken and back above it in original direction.. is it avoided as we had earlier breakout failure of days high and now breakdown failure of last swing low?

    Looking forward to your valueable reply.

    Plese let me know your email address

    Regards
    Bharat

    ReplyDelete
  13. Bharat

    Your understanding for the TRAP is not correct. Please go through it again. You can email me at charttechnicals@gmail.com

    ReplyDelete
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