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.

Golden Rule


As a range trader, I remember only one Golden Rule:  When prices are going up, identify the range and buy at range lows.  Similarly, when prices are going down, sell at range highs.  When the moves are sideways, do both, i.e. buy at range lows and sell at range highs.


Today's price action is a good example of this rule, buying the range lows when it is going up.  See how,


Here market rallied and then four ranges got formed.  For range A, we did not have a test of the low and we did not get proper entry point.  For range B, we had a TST of range low as an entry pattern.  For range C, we got two BOF opportunities. So in total we had three good trade opportunities to trade with the trend and at the lowest risk.

When we trade the ranges, target is always other range extreme but we can expect more.  Many  a times successful BO happens at other range extreme.  Here price broke out of range C and sustained above it for a while before coming back into the range.

Identify the range and make use of it.

Thursday, 26 June 2014

26062014


Nifty opened full gap down.  Broke out of yesterday's tight range. Waited for the initial range to form.
1)  BPB of PDL. Entered below IRL. Then there was a big impulsive WRB.  Booked when it could go further down. Profit of 31 points.
2)  BO of Range High as PP.  It got rejected immediately.  Booked at swing low. Loss of 7 points.
3)  BOF of Range Low.  It tried to go up after initial pull back but could not reach to RN and reversed.  Scratched it. Loss of 2 points.
Missed the last down move.

Wednesday, 25 June 2014

25062014


Nifty opened near PDC with initial move down.  Traded whole day in a tight range.
1) BOF of range low.  Booked when failed to go above PDC/Range high. Profit of 5 points.
2) BOF of PDC/range high.  This also did not move much.  Booked at 3 points of profit.

Tuesday, 24 June 2014

24062014


Nifty opened gap up, inside previous day's range and broke the PDH RN.
1) BPB of PDH RN.  There was a nice move up.  Target was BRN and achieved. Profit of 41 points.
2) BO of BRN.  After getting resisted at BRN, it consolidated and made a narrow range.  Went long on BO of this range. Booked when it failed to move up further.  Profit of 4 points.
3)  BPB of BRN. It moved well and broke the other extreme of range.  Booked when it failed to go down further. Profit of 15 points.

Monday, 23 June 2014

23062014


Nifty opened just above PDC.  Initial range formed.
1)  BPB of PDL.  It could not go much below BRN.  Booked when second time failed to go down below BRN.  10 points profit.
2) TRAP.  Shorted below day low then.  Did not move as expected.  Had to scratch it. Profit of 1 point.
3)  BOF of BRN.  Moved as expected to day low then.  Did not wait and book it there.  Profit of 21 points.
Could not trade the last move up.  Missed it completely.

Friday, 20 June 2014

20062014


Nifty opened near PDC and initial range formed.
1) BPB of PDC IRH:  It did not move well.  Booked it when I felt it was not going up.  Loss of  7 points.
Skipped the TST/FTC at HOD as there were levels below.  It was a good trade to miss.
2) BOF of IRL:  Took it though there were RN PDC above, as I felt it would remain in a range. Scratched it when it got resisted at PDC.  Profit of 1 point.
Nifty whole day traded around PDC RN before breaking down the PDL  Shorts had been more fruitful.

TRADE-SCORE



I have prepared a small ebook called TRADE-SCORE.  It is about the thought process involved in trading the Decision Points.  Many a times we get confused whether to take the trade or not when the price approaches DP.  It happens because either we are not fully aware of what exactly is going on at that point or we simply lack confidence.  TRADE-SCORE helps us to assess different aspects of trading and to build up our confidence in decision making.

Download TRADE-SCORE here. 

Thursday, 19 June 2014

19062014


Nifty opened gap up of 40 points after a big down day yesterday, within previous day's closing range.  Initial range formed.

1) BOF of BRN.  Avoided entering on direct BO of IRL.  Later could not find good entry point after a pull back as PDC RN and PDL below.  Missed the down move.
2) BOF of PDL PDC RN.  Entered above PDC. Booked when it got resisted around IRL. Profit of 14 points.

Wednesday, 18 June 2014

18062014


Nifty opened near PDH but initial move was down. IR formed.
1)  BPB of PDH PDC.  I took the trade though I was skeptical of the up move.  Did not move up.  Loss of 7 points.
2)  BPB of LOD.  Also BOF of PDH PDC.  I could not enter below IRL/LOD as I wanted to avoid direct BO. Entered after little consolidation.  Booked at PDL.  Profit of 69 points.
3)  BOF of PDL RN. I did not enter on first swing high as I expected some consolidation after a big move. Entered above second swing high.  Booked around BRN on second pull back.  Profit of 24 points.
Missed the last move down

Monday, 16 June 2014

Congestion Zone


Live example of congestion zone is noticed today.  I have marked this zone in a light blue color rectangle box.  Notice the significance of it.

I took the first trade when it broke below IRL (T-1) as BPB of PDL RN DO. I took that trade out of the congestion zone as it is always good to trade away from the congestion zone.

Another trade opportunity is at the area marked as (T-2).  BO of PDC or BPB of PDL RN DO. It is also a good PP (pressure play). However, the trade has failed.  One of the reasons I see is the congestion zone.  This trade is in the congestion zone.  We need to wait for it to come out of this congestion zone.  

Friday, 13 June 2014

13062014


Nifty opened at PDC and initial range formed with PDH and PDC within the range. It traded within this range for around 3 hours before breaking out on lower side.
1) BO of IRL with entry below RN:  Covered around PDL when I felt it was not going below BRN.  Profit of 36 points.
Missed the BPB of BRN as I had just booked the short trade. There was a very fast move to RN 7550.
Avoided the TRAP as at that point it had already fallen around 130 points from top and expected some consolidation there.

Range









These are today's two charts, one from MT4 and one from the broker. Nifty is trading in the established range. If we want to trade, we can trade at range extremes only and not at the PDH or PDC. Preferably at day high and day low as direct BO or BOF.  Keep in mind below the day low there is RN and above the day high there is BRN.

Thursday, 12 June 2014

12062014


Nifty opened at PDC, moved towards PDL giving BOF of PDL.
1)  BOF of LOL PDL PDC:  Went long above IRH.  Got resisted at NS RN. Booked at 7 points of profit.
2) BO of Range High: It failed to move as expected.  Booked loss of 6 points below MC.
Did not attempt any other trades as nifty was forming Barb Wire around RN 7650.

Wednesday, 11 June 2014

11062014


Nifty opened below PDC and initial range formed.
1) BPB of PDH PDC:  It moved well.  Booked when it got resisted at NS BRN.  Profit of 25 points.
2) Again BPB of PDH PDC RN on short side:  It did not move as expected.  Booked at 8 points loss.
3) TRAP:  Here my target was PDL but it did not go there and got supported at NS BRN 7600.  Booked at 12 points of profit.

Tuesday, 10 June 2014

10062014


Nifty opened above PDC.  Initial move was down.
1) BPB of PDL.  Target was BRN but waited to see if BRN breaks or not.  Covered it above MC. Profit of 13 points.
2)  BOF of BRN on PP.  Ignored the PDL as I expected lot of SL covering above consolidation high. Covered when it failed to move above RN.  Profit of 27 points.
Missed the last up move as I was not confident to enter.

Friday, 6 June 2014

06062014


Nifty opened full gapup above PDH. Initial range formed.
1) BOF of IRH. Booked when it could not move further down.  Profit of 10 points.
2) BO of IRH.  Entered above HOD then.  I expected order flow above it to the RN, so ignored the space. It failed to go up.  Scratched, 1 point of profit.
After that I was busy with my work, couldn't trade.

Thursday, 5 June 2014

05062014


Nifty opened at PDC and initial range formed. Was looking to trade at the yesterday's tight range, BO or BOF. Got the BO of PDL.
1) BO of PDL BRN.  Entered below BRN.  Booked when failed to go further down.  Profit of 8 points.
2) BPB of PDL BRN.  Went long above IRL.  Booked when it got resisted at HOD.  Profit of 16 points.
3) BO of PDH.  Usually I do not take immediately another trade once I book out.  It is always good for the trader to wait out for some time once trade is booked out. But here as there was a BOF of PDL, it gave me confidence to enter in the trade above PDH.  We all know that failure of break out of one range extreme leads to successful break out of another range extreme.  I had this in my mind.  Got rewarded handsomely.  Booked at profit of 42 points.
Missed the last up move.

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.

Tuesday, 3 June 2014

03062014


Today was an announcement day for RBI credit policy.  Waited till the announcement was done.
1)  BPB of PDH.  I was a bit skeptical about this trade's success as I took it in the middle of the range but it moved well breaking BRN and NS BRN. Booked at 33 points when failed to go up further.
2) BOF of HOD.  Shorted below the MC. Booked at 27 points when it bounced from PDH.
Missed the last move up.  It was nice up move in the fluid.

Monday, 2 June 2014

02062014


Nifty opened above PDC, within previous closing range.  Initial range formed.
1) BPB of RN IRH. Price moved as expected crossing PDH, BRN.  Booked it at RN 7350 as it was up more than 100 points and thought it would consolidate here. Profit of 85 points.
What a day it was!!! A strong trend day up...
Did not take any other trade.  Missed the last move up as I hesitated to go long since it was already up more than 100 points.