Monday, 7 July 2014

07072014


Nifty opened just above PDH/PDC and tried to break the BRN above.  Since Friday was a big volatile day, I was expecting today a quiet range bound day.

I waited for the IR to form. Then there was a BOF of BRN.  Avoided this CT trade as I was expecting range bound day and there was no enough space.

Then there was a BO attempt below IRL. Again avoided it for the same reason.
1) BPB of PDH/PDC IRL.  Next time when the BO on downside again happened, I entered it.  It did not move.  Booked loss of 9 points.
2) BOF of Range Low.  As expected earlier in the morning, nifty remained range bound so far. So attempted BOF.  Entered above the MC. My target was around Day High.  It moved as expected but missed the target by couple of points.  Booked when it came back into the range, below BO candle. Profit of 12 points.

Whole day Nifty remained in a narrow range creating a Barbed wire pattern around PDH.

5 comments:

  1. Hi URD, I took both the BPB of IRL ( 10:20 candle and 10:50 candle), I went short at 7780 and 7779. I guess you took the first one, but avoided the second one. I was also hesitant as it looked channel move to me, but then I went ahead and took this risk with 5 points. What made you avoid the second BPB? Then I kept SL trigger at DL at 7776, but market reversed and I booked the loss at 7778 and took the BOF at 7782 (1:27 PM) and my SL got hit at 7794 (2:15 PM).

    ReplyDelete
    Replies
    1. Vikram

      I was expecting range bound move so avoided BO trade initially, but ultimately ended up taking one BO trade which failed.

      I took the same BOF trade.

      URD

      Delete
  2. Sir,

    I took the first trade(my only trade too) and the result was same. Regarding you second trade - the space between your entry point and PDH was 7or 8 points only. You trusted the strength of that BOF to break PDH? What was your thought process?

    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      When I took the BOF trade, there was a clear-cut barbed wire pattern around PDH. See how many times it got broken on both sides. So you cannot consider PDH a significant barrier. Also I was trading the BOF of range extreme and it was a powerful one.

      In such situation when a range gets established and there are DPs inside the range, you need to trade the range extremes and not the DPs.

      URD

      Delete
    2. Sir,
      Thanks for the guidance.
      S.Karthikeyan

      Delete