Friday, 17 October 2014

17102014


Nifty today opened with inside 23 points gap up after a big down day yesterday. As expected it traded in 30 points range before breaking down PDL. There was a Pressure Play kind of setup at IRL but avoided it because of PDL being very close to it.  Then there was a BOF of PDL.
1) BOF of PDL. Entered when it came back into the range.  It moved well.  Booked at 32 points on FTC.
Then there was a complex pullback trapping the longs.  It was also a pattern failure.
2) TRAP.  I took this trade though I was less confident as there were two prominent barriers, Monday's low and NS 7800.  It tested my patience a lot and took its time to move but  finally moved.  Booked at 24 points when it could not sustain above RN 7850.
Missed the final down move.


11 comments:

  1. Hi Dave,

    Good trades..

    What is meant by Pattern failure.

    I missed an opportunity at BOF PDL, so i attempt BOF of BRN at 12.21 pm candle and stopped out and could not enter again. What was your thought process during this point? How you can avoid this trade and capture the right entry in next BOF of BRN.

    Thank you,
    Kiran.

    ReplyDelete
    Replies
    1. Kiran

      Thanks. I was already in the long trade taken at BOF of PDL. BOF of BRN happened immediately after I exited from my long trade. I usually like to wait for some time before taking the trade again once I book out. I believe it is always better to take some time off once the trade is over. It helps me to focus better for the next trade. If BOF of BRN had happened after some time, I could have taken that. It was a good setup. Then there was a good TRAP setup and I took that.

      Try not to trade again and again at the same DP. If your trade fails, wait for some time. If a good trade is missed don't worry. There will always be another opportunity.

      URD

      Delete
  2. Hi Dave,

    Good trades..

    What is meant by Pattern failure.

    I missed an opportunity at BOF PDL, so i attempt BOF of BRN at 12.21 pm candle and stopped out and could not enter again. What was your thought process during this point? How you can avoid this trade and capture the right entry in next BOF of BRN.

    Thank you,
    Kiran.

    ReplyDelete
    Replies
    1. Kiran

      For your query regarding pattern failure, please see my response to DM below.

      URD

      Delete
  3. Hi Dave,
    What made you stay out on complex pull back (short trade).

    ReplyDelete
    Replies
    1. Shashank

      I had just booked out from the long trade and as a usual practice I took some time off after that trade, so luckily could escape out of that BOF of BRN trade.

      URD

      Delete
  4. URD,
    "It was a pattern failure." What pattern are you referring to here?
    Thx,
    DM

    ReplyDelete
    Replies
    1. DM

      There was a BPB of BRN setup once it broke out of BRN and that setup/pattern failed because of complex pullback thereafter. This failure also triggered another pattern, BOF of BRN. This pattern also failed.

      URD

      Delete
  5. Daveji,

    Great trades.

    1) Your first trade:I waited to see the price getting accepted inside IR, as I expected the IRL to act as a flip for some time and missed the trade. Is it not necessary to wait for the price acceptance inside IR here?

    2) Why did you skip BPB of BRN as well as BOF of BRN?

    Thanks,
    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      There were two possibilities for the entry. One was where I entered and another one was above the MSP. I preferred to enter on break of IRL because i) it was acting as a Flip. ii) Price traded in the range for long time and after PP setup it broke the range and ultimately PDL. But then it got rejected immediately in the next candle and bounced. So it was not only BOF of PDL but also the BOF of range once it got back into the range. Also as a range trader we buy the range low and it was the place where we could buy range low. I hope I could convey it properly. If still any doubt, please let me know.

      For your second query please see my response to Kiran and Shashank above.

      URD

      Delete
    2. Daveji,

      Thank you so much for the detailed explanation and for sparing your valuable time. Have a great week end.

      Thanks
      S.Karthikeyan

      Delete