Friday, 18 July 2014

18072014


Nifty opened full gap down.
1) BPB of PDL on down side.  It moved well and tested the BRN but could not break it. Scratched it at profit of 3 points.
2) BPB of PDL on up side. It tested my patience initially but then moved as expected.  Booked it when it could not sustain above PDH.  Profit of 22 points.
3) BO of HOD.  I thought this would move well but it did not. Had a loss of 4 points.

11 comments:

  1. Daveji,

    Regarding your second trade - I thought that it may be a strong BOF, as the rejection after the BO candle was very good and two subsequent candles(after BO candle) closed well below PDL. Further when the price touched your entry point, there was very good rejection again.

    Fortunately my BOF order was not filled.

    What is wrong with my analysis?

    Thanks,
    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      It is not a proper BOF pattern. See, there is a big green BO candle, then PB (two red candle and one green candle). I entered my Buy Trigger order above high of BO candle at this point for BPB trade. Then after around 7-8 minutes it triggered my order. After that there was a rejection and it pulled back to PDL. I kept my SL below swing pivot as marked on the chart. If it had gone below this swing pivot or BO candle, it would have been considered proper BOF pattern. This did not happen. Almost all the price action contained within that BO candle except the candle which triggered my Buy order, before finally breaking out.

      URD

      Delete
    2. Daveji,

      Thanks for sharing your thought process. Wishing a great week end.

      S.Karthikeyan

      Delete
    3. @ U R Dave sir ,
      your entry is above BO candle high and SL is below swing pivot ...then your SL is more than 12-13 points .....
      i want to ask you as mostly how much point SL for trade ?

      ST sir says SL is not more than 10 point ....i always confuse about SL . ..please share your view..

      Delete
    4. Vishal

      Yes, It was at 13 points. I allow 10 to 12 points of initial SL but sometimes stretch it a bit. You can always scratch it before it hits your SL once you feel trade is not moving as expected.

      URD

      Delete
  2. Replies
    1. CM

      I do not consider RN for entry unless I have no other option as a DP to trade. Today RN was in between PDL and PDC, so space will be an issue if you want to trade with the RN only.

      URD

      Delete
  3. Davebhai,

    Why didnt u exited your second trade below 11.33.. i moved my sl there looking to entry bar failure and pivot below it also broken... What was the thought process for not scratching the trade.. i also Scratchen Reentry above 11.20 during 12.03 when entry bar failed .. how do we trail in this cases.

    Regards

    Bharat

    ReplyDelete
    Replies
    1. Bharatbhai

      Please see the reply I gave to SK above.

      Furthermore, you need to give the trade some time to move and for that we need to wait at least till the first pull back holds. Here the low of first pull back did hold. Price did not close below this low.

      URD

      Delete
  4. URD,
    you are using CFD platform for charting and testing right ?.....Actually CFD spread is too wide.....how you manage this situation?4-5 pts stop loss not work these systems......One who trading NF in india those people only get chance to exit small loss.

    I appreciate your response

    ReplyDelete
  5. Lucky

    I use this MT4 for charting purpose only. My broker is Ventura. Brokerage plus taxes for the round trip costs me 115 rupees.

    URD

    ReplyDelete