Wednesday, 28 September 2016

Nifty Future 28092016

















It opened within previous day's range and started trading higher.  There were three possible setups as marked on the chart.  First one was BPB of PDC.  Second was direct BO of the range and third was the reversal trade, BOF of PDH.

I also marked the ranges that played out during the day.  Notice how the prices traveled from one range to another.

Once you are aware of the ranges and know what the prices are doing, it will become lot more easier to trade with the system. 

9 comments:

  1. Thanks URD
    Excellent explanation..!!

    ReplyDelete
  2. Uday,
    In the first BPB trade, all the candles which formed BPB pattern are inside candles of previous big candle. Is it valid to consider this?

    ReplyDelete
    Replies
    1. Prabakaran

      What is the meaning of BPB? It is breakout pullback. It may take any shape. Here it broke out PDC and pulled back to PDC. Now if it crosses the breakout bar, in this case, then the pattern is triggered.

      You can avoid pattern trading, if risk reward is not favorable or your reading of the prices does not allow it.

      URD

      Delete
  3. Sir in Bof there was no swing low formation thats why you have taken direct Bof ,kindly update thnx

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    Replies
    1. Amber

      What is direct BOF?

      URD

      Delete
    2. Sir a Msp shud form below DP and its crack is considered Bof,kindly guide if i am wrong

      Delete
    3. Amber

      The definition of BOF if, prices break out the level but the breakout fails. Here the prices broke out PDH convincingly but failed immediately. Hence it is BOF. Now it is up to you where you would like to enter the position for this BOF. It can be on crack of swing low or MSP or BO candle. Choice is yours.
      URD

      Delete