Monday, 30 June 2014

30062014


I could not trade on Friday.

Today, nifty opened above PDC, minor gap up and broke PDH.
1) BPB of PDH. I took the help of 1-min chart for the entry.  A nice pull back was very much apparent on 1-min chart.  Booked at a profit of 39 points when I felt it was not going up and started consolidating.
2) BOF of Range Low.  Entered above minor swing high.  This one also moved well.  Booked at 15 points of profit.

15 comments:

  1. Hi Dave,

    I took both of these trades but took profits prematurely (I realize in hindsight). I entered BPB at 7579 but then too profit at 7595.
    and in the BOF of range low, I entered at 7622 but then too profit at 7628 when market was coming back from range high of 7633. How do you manage your SLs or trade? Once you are at cost, then do you allow deeper pullbacks as well?

    ReplyDelete
    Replies
    1. Vikram

      Once I enter into the trade, I allow the first pull back. Then it all depends on how it reacts at next DP and price action around that DP. In first trade, after the entry, there was a big candle breaking the BRN but it could not close above BRN. Next two candles also could not close above BRN. You need to take this kind of price action as a pull back. One should be ready for such behavior. It is very rare that DP gets broken on first attempt. There will be some tussle to break it. Then it breaks the BRN successfully. Now you can move your initial SL to the earlier pull back when price first got resisted at BRN.
      I booked the trade when the third time it failed to go up significantly. After breaking the BRN, it pulled back (first pull back). Then it tired to go above the high but could go up by couple of points. Then pulled back (second pull back). Again tried to break the high by few points only and started pulling back (third time). I booked there. Also I was in good profit.

      You book either at target or on first sign of reversal or when you are in good profit or you expect the consolidation. It is your choice when to book.

      URD

      Delete
  2. Can you elaborate your entry, initial SL and trailing SL for both of these trades?

    ReplyDelete
    Replies
    1. Vikram

      I tried to answer this in your first comment. If still any query, please feel free to ask.

      URD

      Delete
    2. Can you explain the initial and trailing SL for your second trade? I entered at 7622 but then took profit at 7628 when market was coming back from range high of 7633. Please let me know the exact levels and the candles at which you moved the SL. It will help me to understand better.

      Delete
    3. Vikram

      Entry was at 7623 and Range low was the initial SL at 7617. Price went to Range high and reacted there and pulled back to my entry point. I took this pull back as the first pull back and allowed it as I expected this. I then shifted the initial SL to this pull back low, i.e. at my entry point. Then it broke the Range high. I shifted my SL to BO candle low. It then came close to RN 7650. I again expected some reaction there. One could have booked profit here at RN. I did not. I then shifted SL as marked to minor swing low at 7639. It got triggered. All the orders were SL limit order.

      URD

      Delete
  3. will u monitor both 1m and 3m charts?

    ReplyDelete
    Replies
    1. CM

      I monitor only 3m charts. I seldom look at 1-min for good BPB entries only as sometimes pull backs are not that clear on 3m chart.

      URD

      Delete
  4. Davebhai ,

    Why u were confident to take 1min pullback trade and not waited for 3min pullback ?

    Regards
    Bharat

    ReplyDelete
    Replies
    1. Bharat

      It was a very good setup.
      Good Location: It broke out of PDH. Break of PDH and PDL shows a significant shift of bias.
      Enough Space: Next hurdle was BRN around 25 points away.
      Favourable order flow: BPB would ensure favourable order flow.
      Low risk: 11 points of initial SL.
      Trend: The trade was with the trend, i.e. up trend.

      Now what else you want? Don't miss such good setups.

      URD

      Delete
  5. hi
    suppose price moving up, when to trail using swing low and when to use flip?

    ReplyDelete
    Replies
    1. CM

      If prices are moving in your favor, initially to give the trade a chance to move, try to trail using swing high/low. Once you feel you have gained enough or target is achieved, to secure your gains you can be a little bit aggressive and use a flip or even a BO candle or any sign of reversal to book your profit.

      URD

      Delete
  6. hi
    which broker your using and how much is brokerage (in nifty points). and margin your getting?

    ReplyDelete
    Replies
    1. CM

      I would request you to explore this blog. You would find your answer.

      URD

      Delete