Thursday, 16 October 2014

16102014


Today there was inside gap down opening at about 35 points below previous day's closing range (PDCR).  First four candles made the IR for me as there was a Flip zone created by PDCR. Then it broke the cluster of PDC and BRN and failed.
1) BOF of PDC & BRN.  I took this trade though it had already run up 55 points in the short span of time in the morning and there were chances of consolidation. Luckily IRH worked as a Flip here and trade moved in my favor but it did consolidate. Booked it at 9 points of profit after 45 minutes into the trade as it seemed not moving further down.
Then it started trading in a narrow range.
2) BOF of IRH.  It moved well. Booked it when it was refusing to go further down PDL. Thought cluster of DPs like DO, LOD, PDL, RN were holding the move.  Profit of 28 points.
Then there was a pullback which proved to be a complex pullback.

3) BPB of PDL.  Thought I was taking the chance as there was NS BRN 7800 and Monday's low very close. But it worked.  It halted some at NS BRN and then sold off.  Booked it at the end at 74 points of profit.
What a fantastic day it was!!  All thanks goes to the great ST for giving this wonderful system to the world.

4 comments:

  1. Great Trading Dave..Text book executions..

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  2. Daveji,

    As always, great trades. Congrats!

    In my limited experience, I have repeatedly observed that pattern failures like today's failure of PDL BOF, have a high probability of breaking through any barriers. We can take pattern failure trades blindly without worrying about space and how much the price has already travelled as they are with trend trades.Please correct me, if my view about pattern failure trades is wrong.

    Thanks,
    S.Karthikeyan


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    Replies
    1. SK

      Thanks. Pattern failure adds to the conviction for the next trade setup, no doubt about it. But I feel the space, the move traveled etc has their own significance. We cannot ignore them. Of course we can expect the strong move after the failure as there will be trapped traders trying to exit. It is always better to have more evidence to support our conviction and not just rely on the pattern or pattern failure.

      URD.

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    2. Daveji,

      Thanks for the guidance.

      S.Karthikeyan

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