Friday, 22 January 2016

7 comments:

  1. Hi Uday,
    Regarding 1st Trade I think it was bit tricky to take.Considering there was no PP/BPB kind of setup.
    Off course considering overall picture it was good to go long
    1> Immediate rejection of IM
    2> Price taking support at day open.
    3> Considering last impulsive wave.
    But only problem was with confirmation signal. Let me know your thoughts.

    Could take only second Trade.

    ReplyDelete
    Replies
    1. Shashank

      Reading the price action correctly without any personal bias and following it objectively is the key in this discretionary DP trading system. Many traders fail to understand this.
      Now you add the following to your thought process.

      Opened 50+ gap up and that too counter-trend. After such an open, you would expect traders to follow the trend and sell the gap and initially it seemed they were trying to sell the open. But soon it appeared that there was no follow-up selling coming. It means traders are not interested in shorting but rather looking for a signal to go long. BO of narrow, short consolidations may often given such signals and does not require confirmation.

      Just keep your eyes and mind open and let the thoughts keep pouring in. Keep a track of these thoughts and write them down. Blogging is the best way to record them. Think about it.

      URD

      Delete
    2. Thanks Uday, will start blogging soon.

      Delete
  2. Hi Dave,
    Where is the exact exit according to system? mark if possible.

    ReplyDelete
    Replies
    1. Sunil

      I do not know the exact exit and to be very frank, we will never know it. I still often regret about booking out the trade early. Here one could exit at PDH BRN or wait and see if prices are able to break it and then decide about booking it out. It all depends on a trader, his risk profile, his character, and lot of other things. This is the reason why I have stopped marking exits on the chart.

      URD

      Delete
  3. Hi,URD
    Thanks for the chart. After long gap keep posting continue please.

    ReplyDelete