Wednesday, 11 March 2015

11032015


Today in the morning Nifty seemed to be trading in the range.  Shorted at the Range High.  It moved well and broke the last low but bounced quickly from it.  Trailed the SL to above RN and got out. No other trades afterwards.
In hindsight there was a good short at LOL BRN PDH.

8 comments:

  1. Daveji,

    Very good trade.

    I have a doubt. Today is Inside day. If price opens tomorrow near PDC, in the last impulse of today, what will be your bias?

    Thanks,
    S.Karthikeyan

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    Replies
    1. SK

      Thanks. If price is trading within the previous day range, I would expect it to remain in that range and will look to initiate trade at the range extremes.
      Before initiating trade, I always ask a question to myself, is it trending or ranging? I first try to find out the answer of that. For example, in the morning today when i tried to get answer of that question, before initiating trade, I felt it was trading within the range where 8780 was the upper and roughly 8750 was the lower range extreme. 8780 was a level where price got resisted twice on the up move yesterday. So I felt that level could prove to be the upper range extreme today. For the lower extreme, second candle got support around 8750 and the flip and the down move got arrested there. So low of the second candle was the lower range extreme at that time. Then I waited for the price to touch any of the extreme. Once it touched the upper range extreme, I closely followed the price action and initiated the trade as per my read of the price action.
      I would suggest you to do the same.and then develop the bias as per the price action. If it is trading above the range and breaking the DPs on upside, bias will be up. If it is in the range, better to trade the range extremes..

      Delete
    2. Daveji,

      Thanks a lot for the detailed reply.

      S.Karthikeyan

      Delete
  2. Hi Dave,
    Why no short trade at 11:35. (Weak pull back from range low).

    ReplyDelete
    Replies
    1. Shashank

      Good to see your comment after a long time. How is your trading going?

      It took about an hour to test the low. If it had tested it within half an hour after a minor pull back, I could have tried that short. Also the PDL was only 20 points away.

      URD

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    2. Hi Dave,
      Trading is going good. Enjoying journey so far. Will Start posting from tomorrow regularly.

      Delete
  3. I also took that short trade in morning, but was very late in booking profit. Gave up most of the profit and got stopped out at xx62.
    Thanks
    --TiZ--

    ReplyDelete
    Replies
    1. TIZ

      It happens. Don't bother about it too much. I felt confluence of LOD then and 8750 was a good level. So exited immediately once I felt there was a rejection from that level.

      URD

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