Monday, 13 October 2014

13102014


















Today Nifty opened full gap down around 50 points.  It seemed like Nifty took support  at the prominent Flip on a daily chart and NS BRN 7800.  IR formed.  Avoided going long above IRH as there was RN above.  Finally took a long above RN.
1) BPB of Range High.  It moved as expected.  Once it broke PDL on up side, trend accelerated.  Booked at 70 points of profit on the first sign of trend weakness. 

3 comments:

  1. URD,
    Nice trade. Can you elaborate "...first sign of trend weakness." What made you get out at that point and not earlier?
    Thx,
    DM

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  2. DM

    I try to gauge the strength of trend before exiting whenever possible. Today If you look closely the chart, you would feel the strength of trend. I have tried to mark all the Flips after my entry and I only considered those Flips for trend strength..

    Go through these wonderful posts by ST for better understanding.
    http://niftynirvana.blogspot.in/2012/08/price-channels.html
    http://niftynirvana.blogspot.in/2012/11/make-or-break-levels.html

    In nutshell, if price moves within a channel, it is a soft trend. If it respects the flips, it is considered okay kind of or normal trend strength. If it forms buffer zone, it indicates trend is strong.

    Today there was either normal or strong trend strength throughout the up move. Only towards the end it started showing exhaustion.

    URD

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