Friday, 22 August 2014

22082014


Nifty opened just above the PDC and IR formed.  As bias was up I was looking to buy at good setup in the morning session but unfortunately did not get any.  There was a test of IRL/DO in morning but was not confident to get into that and skipped. So no trades today.

In hindsight, later in the noon time there was a good BOF of IRL/DO and it did reach to PDH.  Then there was a TST at PDH of low probability one.

5 comments:

  1. Hi Dave,
    What was the thought process for taking trade early. Usually ST takes it at the break of MSP.

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  2. xrtrader

    Usually we wait for swing pivot to form and then go into the trade on break of it. MSP instead of swing pivot is considered when it is trending. Here it was in a 20-25 point range. It was not trending.

    Here it was an aggressive entry. In hindsight, my thought process is that it was the third attempt to break IRL/DO and it failed to do it. There was only wick below the IRL/DO indicating rejection of price below it. There were not enough order flow below it to take it to even PDC.

    URD

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    Replies
    1. How would you have managed the trade? Thx,

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    2. DM

      Well, I would have scratched it on the break of flip. There was a complex pull back after the entry. The flip could not hold but again IRL/DO lent support. Complex pull backs are tricky. They will be there to shake you out of the trade.

      URD

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