Friday, 2 June 2017

Nifty Future 02062017


This is how I tried to analyze the price action in morning session.

Prices broke at open the narrow range that it formed over last few days.
Once such kind of consolidation is broken out, we can expect follow-up or continuation, but unfortunately that did not happen as prices were unable to move higher than first 3 min candle.
Since the prices are not showing momentum after the BO, we can expect range bound moves for some time.
So now what can be the likely range for range bound movement?
Well, it can be 1) 9650 to 9670, 2) 9640 to 9670, 3) 9630 to 9670. I have rounded off the numbers.

So wait and see what range actually plays out.  Whatever range prices confirm, we can trade that range.  Also we can trade that range with keeping overall trend in mind which is up.  If the trend is up, it is good for us to buy at range lows.

So summing up the plan, wait for the range to get confirmed. Once it gets confirmed, wait for a good pattern at or around range lows/DPs to go long.  Also always be ready to change the plan if prices start behaving differently.

Summary at EOD:  Prices behaved as analyzed and remained in the range whole day, 9650-9670 without giving an opportunity to trade.

4 comments:

  1. Nice analysis, chopped day for price action trader, I was little bearish but no BOF range high, so no trade today

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  2. Thanks for the explanation..

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  3. Thanks a lot Uday, for your enormous and continuous contribution to DP trading community.

    ReplyDelete
    Replies
    1. Sunil

      Good to see your comment after a long time. I should thank you and others for supporting me to continue going.

      URD

      Delete