Wednesday, 4 June 2014

04062014


Nifty opened at PDC and initial range formed.  It spent the whole day in this initial range.
1) BOF of IRL.  Went long above the BO candle as there was a fluid created. Booked at 15 points profit around the range high.
2)  Attempted another long at same location.  Thought it would again go up to range high.  Did not move as expected. Scratched it.

10 comments:

  1. URD, There was a BOF of IRL opportunity earlier also. You didnt take it?

    ReplyDelete
    Replies
    1. PA Trader

      Yes, it was a good opportunity. I waited for a swing high to form but when it formed, I thought I would be taking the trade in the middle of range and PDH was just 10 points away from the swing high. Next time when BOF happened again, the fluid gave me confidence to take the trade.

      UR Dave

      Delete
    2. Good insight about that fluid. Thanks

      Delete
  2. Sir,
    I shorted below 2nd candle low considering it as LOL BOF of PDH/PDC. Is it a valid trade? I exited with 2 points loss.
    Thanks,
    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      Why 2nd candle low? Wait for the minor swing low/high to form. Also your entry was in the middle of the range. Once it bounced from IRL you could have booked it.

      UR Dave

      Delete
    2. Sir,

      Thanks for your guidance.

      I thought that 2nd candle low can be considered as swing low.
      We follow 2 methods for entry. One is the breach of BO candle low/high and the second is the breach of swing low/high. How do you decide on your entry method in a given situation - BO candle low/high or swing low/high.

      I am using MT4 charts and find it really good. Thanks for your post regarding this.

      S.Karthikeyan

      Delete
    3. SK

      On second and third candle price could not break out successfully. See the tails of those candles. Only fourth candle broke out and closed above PDH. If you wanted, you could have gone short below fourth candle.

      Swing high/low is more preferable.

      Thanks

      UR Dave

      Delete
    4. Sir,
      Thanks for your guidance.
      S.Karthikeyan

      Delete
  3. sir why did you not take the bof of pdh?

    ReplyDelete
    Replies
    1. SBV

      Main reason being not enough space, there were multiple levels, PDC, IRL, and BRN below.


      UR Dave

      Delete