Thursday, 17 December 2015

5 comments:

  1. Thanks Uday, Didn't traded today.
    Thought process for 2nd Trade:
    1> CM who wanted to go short trapped. (Effectively This was a BOF).
    2> They will bail out when the consolidation range broke.
    Question 1> is the Thought process correct ?

    ReplyDelete
    Replies
    1. Shashank

      That is right, but there is something more to it, I think. Markets do not like uncertainly. Now today as the uncertainty is out, it has to move. It simply can't get stuck into the range.

      In the morning, it refused to go up and started trading lower. That is why I said "one can attempt short." But it again refused to go down further and 7750 acted as strong support like it did yesterday. So at that point it seemed only the profit booking which usually happens after the event is out. Then the PP setup triggered which led the traders to jump in and then investing community took it over.

      URD

      Delete
  2. Hi,
    did the short as bof brn pullback. got nice 30 point. I was looking for pp. But thought that price will consolidate more for 3-4 bar at top and then I will take the trade. Not getting the event part of your reply. What was the event : Fed rate increase.

    ReplyDelete
    Replies
    1. Nirtos

      Fed rate decision was the event that I was talking about.

      URD

      Delete
  3. I got the entry right - BOF of 7750, but spoiled it with an exit just before the fluid move.

    ReplyDelete