Thursday, 18 September 2014

18092014


Today Nifty opened at PDL.  First candle tried to break it but failed.  Initial move was up.
1) BOF of PDL. After a minor break of PDL there was an initial up move, then a pause for two candles.  Took a chance and went long above it. Then to a big surprise it broke all the DPs on up side and shot up like
a rocket.  Decided to trail it.  There was no sign of weakness at any point till it reached the gap created on Monday.  Booked it there.  Profit of 142 points.

5 comments:

  1. Daveji,

    Excellent trade. Hats off.

    I waited for a clear swing high and missed the trade.

    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      Thanks. Was fortunate enough to catch the trade early. Did you try BPB of BRN 8100?

      URD

      Delete
    2. Daveji,

      Thought of taking it after seeing a minor TRAP @ around 8075. Was not sure whether it is wise to take BPB at the second BRN in an up move. Hence missed it. A lesson learnt.

      Thanks
      S.Karthikeyan

      Delete
  2. Hello UR Dave,

    Congrats on such a good trade.

    Couple of quick questions

    1) Is a entry as early as this ( i guess it was on the 5th candle) i.e. within the first 15 minutes of market open recommended?

    2) How do you identify a BOF over BPB especially when the BOF is counter trend. Today morning the daily trend was downwards.

    Thanks

    ReplyDelete
    Replies
    1. Anon

      I would appreciate if you write your name on the comment.

      1) It is a valid entry. Waited for the initial move to pause and then entered in the direction of the move. Every day we do not get a clear initial range. Sometimes we have to deal with such momentum moves where there is no pull back and just a pause.
      2) We look at the micro day trend at the open for clues. Yesterday was an inside day indicating a pause. Plus it was a narrow range bound day after a big fall on Tuesday. Often trends are not very clear with uncertainty among buyers and sellers. Inside days, outside days and borderline days are signs of uncertainty in a trend. Today as it opened gap down at PDL, PDL was going to play a big role. We need to watch closely how PDL reacts and if market is able to break it or not. Today after opening at PDL it tried to go down and break the PDL in first candle but did not. This indicated price did not get accepted below PDL. This was confirmed when it moved up giving us initial move up. Then there was a pause in the up move. What should we do in such situation?

      Always look at few things at market open for your first morning trade. 1) Micro day trend. 2) Where it opened and how. 3) Initial move. 4) Where the IR formed.

      URD

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