Thursday, 23 November 2017

Nifty Future 23112017


Trade setups as marked on chart
1) Direct BO of Range High:  It seemed prices consolidated enough, yesterday as well as today in morning session, so a direct BO trade was possible to go long above it.  Also prices refused to trade below PDC.
2) BOF of PDH/Range High:  Prices got immediately rejected from PDH even after a good BO from consolidation, so this BOF was a good setup to short.
3) BOF of PDL:  Normally, it is difficult to go for a reversal trade after a straight line fall of 80 points.  After such fall, one would expect some consolidation or continuation of down move rather than reversal.  However, there appeared good liquidity pool just below PDL which would provide confidence to go for the long.

In case you are wondering what is High Volume Node.  It is nothing but the volume value area.  Volume value area is the price area where maximum trading activity takes place during the day. Often this volume value areas work as a support/resistance because this is the area where markets found value earlier.  In Amibroker, you can find it here, Window>Charts>Basic Charts>Volume at Price Multi.


Please share this post on your social networks if you learned something useful in trading and want others to benefit from it.

2 comments:

  1. URD Ji,

    Thanks for sharing info about HVN. I will add it to my list of observation levels. I took long as BOF of PDL.. but trial SL hit at cost and price zoomed immediately later

    ReplyDelete
    Replies
    1. Rose,
      Don't be in hurry to trail when you take trade in such high probability setups. Trade needs time and space to move. We need to allow it.

      URD

      Delete