Monday, 13 February 2017

Nifty Future 13022017


It opened full gap up but 8830-40 zone was acting as a very strong resistance and prices got rejected quickly.  After that it consolidated and presented a nice setup to short as direct BO.  There were multiple levels below it but reading of the price action gave enough confidence to attempt that short. It moved well.  Could not find a good setup to participate in the reversal and missed that trade.

Have a look at 8900PE, how it moved and helped me save lot of money in taxes and expenses.


11 comments:

  1. Hi URD,
    Nice trade.
    One question here.
    https://www.screencast.com/t/sXoxguRY

    Thanks

    ReplyDelete
    Replies
    1. Arvind

      To trade BOF, you need to wait for the prices to appear as a BOF of PDC which did not happen. When I entered on short, the BO was not good. Prices got refused to stay below PDC for few candles and made me wonder about my decision. But once it broke below it, as you have marked, it could not get back above PDC. Since it could not get accepted above PDC, it is not a valid BOF setup.

      URD

      Delete
  2. URD,

    Thanks for the post. Nice educative post as always. Regarding not finding a good setup to trade the reversal, I have a query.

    By referring to the 8900PE chart posted, one can notice the price rejection around BRN 150 and then a BPB kind of setup around 140. Can we get a clue from here and take the reversal trade either by going long on NF or buying ATM call option ?

    Thanks,
    KSG

    ReplyDelete
    Replies
    1. Ksri

      No. Lets stick to the system which is working for us. We use Nifty future chart for finding the setup along with spot chart. Why to add third chart of option for it and complicate things further?

      URD

      Delete
  3. Davebhai,

    Why would u short infront of PDC and BRN both strong dp. ?There were not pp or long consolidation type of setup.Also the initial down move has wicks below it. showing difficulty in down moves.

    Thanks
    Mahadev

    ReplyDelete
    Replies
    1. Bharatbhai

      Prices got rejected from higher timeframe resistance 8830-40 in the morning. After that consolidated for more than 1 1/2 hours. If the prices are not able to go in one direction, what does that mean? It means it may move in other direction.
      The multiple levels below were the concern but looking at overall picture plus risk reward felt it was a proper setup.

      URD

      Delete
    2. Thanks Davebhai,

      Om Mahadev

      Delete
  4. Hi sir, rejection from pdh completely missed to note and skipped that low risk trade. Excellent trade sir. Thanks

    ReplyDelete
  5. Last 7 days Nifty consolidation in daily. My expectation is narrow inside day or trend day.

    ReplyDelete
  6. I want to take live mentoring, is still u give live mentoring?

    ReplyDelete
    Replies
    1. Anon

      Please mail me to discuss regarding mentoring,

      charttechnicals@gmail.com

      URD

      Delete