Friday, 23 September 2016

Two Trade Setups

This week was not that good for intraday trading but today at last it did produce good trade setups both in Nifty and Bank Nifty.

















Remember, market moves many a times will frustrate you, not allow you to remain focused and ultimately you will lose hope that it is not going to do anything.  This is the time when it will do something and present to you a good trade opportunity.

In the afternoon, price action reading gave enough clues for the breakdown and that compelled me to tweet,
https://twitter.com/charttechnical/status/779223054060707840

This is what I could read from the price action.  "Yesterday big gap up but no followup buying and prices were never able to even come close to the initial move high.  First sign of weakness in bulls. After that consolidation took place for the remaining part of yesterday and today till around 3 pm. Today also the prices kept on testing the lows instead of highs showing further signs of weakness in bulls.  So after a big move it consolidated for almost two days with the signs of weakness in bulls. Then it broke down this long consolidation and pulled back a little giving a nice BPB setup. Should I still wait OR go ahead and pull the trigger?

4 comments:

  1. So you pulled the trigger ... was it to hold on as positional or intraday only ?........... btwn , i exited intraday...

    thanks for your post !!!
    ~zen

    ReplyDelete
  2. Nice Uday.. Indeed it was patience testing week

    ReplyDelete
  3. Uday

    Most of the time both Nifty and Bank Nifty are giving the trade setup at the same time and similar location, like on the above charts.
    So what is the difference between
    --> trading both Nifty and Bank Nifty &
    --> trading 2 lots of Nifty
    apart of margin aspect.

    -Prabakaran

    ReplyDelete
    Replies
    1. Prabakaran

      As a trader it is your choice what you want to trade, what you are comfortable with, what you understand most. You can trade either one of them or both of them. It is upto you.

      I have always believed that what matters most is the trading skills and not the trading instrument. So it is always better to focus on improving the trading skills.

      URD

      Delete