Thursday, 3 March 2016

4 comments:

  1. Hi URD,
    Range Established b/w 7370-7410, also LOL resistance BRN,DO n RH @ 7410, Is positive bias is only reason to avoid that nice BOF of LOL?? or one can take BOF as he taught LOL BOF was very high probability trade.

    Thanks.

    ReplyDelete
    Replies
    1. Sunil

      There is nothing wrong taking the BOF trade there. It is a good setup as you said.
      I personally hesitate taking a short trade when prices trade above PDH. Rarely I would do that. Rather I would look for the good setup to initiate trade in the direction of the trend.

      URD

      Delete
  2. Hi URD,
    For me, a trap is only visible after price moves past to opposite direction swing. Until than it is a BOF. Please let me know, how to identify it earlier.

    Manish.

    ReplyDelete
    Replies
    1. Manish

      TRAP is nothing but a complex pullback.

      Here let me first make clarification, first TRAP is not the perfect TRAP. It is more like a complex pullback. Second TRAP is the perfect setup.

      First condition for the TRAP pattern is that prices need to trend. Whenever they trend in one direction you can look for TRAP pattern to ride the trending move. Here at the second TRAP setup, prices were clearly moving in trending fashion. Now if you want to enter into that trending move, how will you enter into it without the help of DPs over there. Here the TRAP pattern comes to the rescue and provide you to enter into it. So look for TRAP only when prices are trending.

      URD

      Delete