Thursday, 30 October 2014

30102014


Today Nifty opened just below PDH and PDC and broke the PDH in first candle.
1) BPB of PDH. Waited for the BRN also to get broken.  It moved well.  Trailing SL got me stopped out below RN.  Profit of 47 points.
Later it traded in the range at top end and gave good BOF of range low.  I could not take it as I was away.

Wednesday, 29 October 2014

29102014


Nifty today opened full gap up of about 35 points.  The first candle acted as MC.
1) BPB of PDH.  Went long above the MC.  It did not move and the price came back.  Scratched at 3 points loss.
I could not find any other good setup to trade.  Price broke the HOD then but after 3 p.m. so not taken.

Tuesday, 28 October 2014

28102014


Today Nifty opened about 20 points gap up above the yesterday's closing range and traded in the range as expected in the morning session.
1) BOF of Range Low.  It did not move, scratched it at 2 points of loss.
2) BPB of Range High. Booked it when it refused to go beyond RN at 8 points profit.

Wednesday, 22 October 2014

22102014


Today there was a full gap up of 60 plus points.  IR formed and it bracketed the BRN and traded whole day mostly in that range.  Attempted one trade only.
1) BO of Range High.  It did not move.  Had a loss of 5 points.

Tuesday, 21 October 2014

21102014



Nifty opened 20 points gap up inside yesterday's range.  Then it broke PDH on upside. I tried to enter on BPB of PDH but it skipped my order.  Missed that trade.
1) BOF of PDH.  It moved well.  Booked at 15 points of profit when I thought it was not breaking the LOD then and DO.
Then I got busy and could not trade the rest of the day.

Monday, 20 October 2014

20102014


Today Nifty opened full gap up  about 107 points at last two days high.  Expected range-bound movement initially due to this big gap up and Nifty actually traded within the narrow initial range.  Avoided trading direct range BO on upside.
1) BOF of Range High.  It moved well.  Booked at 18 points when it came back into the range at BRN.  Later I thought I exited prematurely though I expected it to remain in the range because trend strength was good, it was holding the flips, I could have waited.
Then later it formed a Bracket around BRN and traded mostly rest of the day within it.
No other trades.

Saturday, 18 October 2014

When To Expect Rangebound Movement


Today I read a wonderful article posted by Mr. Lance Beggs "A Simple Step To Becoming A Better Trader" on his website.  Please read it here in full.

He states after every trading session, find something you can learn from, perhaps a market structure feature, perhaps an interesting sequence of price action, perhaps a trade management insight. Whatever you find to be of most value!  Document it.  Store it in your journal.  Review your journal as often as possible.

I have decided I am going to record my observations.  I am going to start with the second example that he quotes.  "A strong momentum drive into the close with no follow-through overnight provides an initial expectation of a range-bound environment."

I feel we can expect range-bound movement at least in the morning session or for few hours initially if the above condition is met.  Yesterday's price action in Nifty Future in the morning session was a good example.


There is also another example.  In this case, it lacks momentum but the price moves in one direction only and closes near the lows.  In such case, our initial expectation could be range-bound movement.


In conclusion, a strong momentum drive into the close or trending move into the close with or without good momentum; with no follow-through overnight, provides an initial expectation of range-bound movement.

Don't forget, an initial expectation should be amended if the price action suggests otherwise.


Friday, 17 October 2014

17102014


Nifty today opened with inside 23 points gap up after a big down day yesterday. As expected it traded in 30 points range before breaking down PDL. There was a Pressure Play kind of setup at IRL but avoided it because of PDL being very close to it.  Then there was a BOF of PDL.
1) BOF of PDL. Entered when it came back into the range.  It moved well.  Booked at 32 points on FTC.
Then there was a complex pullback trapping the longs.  It was also a pattern failure.
2) TRAP.  I took this trade though I was less confident as there were two prominent barriers, Monday's low and NS 7800.  It tested my patience a lot and took its time to move but  finally moved.  Booked at 24 points when it could not sustain above RN 7850.
Missed the final down move.


Thursday, 16 October 2014

16102014


Today there was inside gap down opening at about 35 points below previous day's closing range (PDCR).  First four candles made the IR for me as there was a Flip zone created by PDCR. Then it broke the cluster of PDC and BRN and failed.
1) BOF of PDC & BRN.  I took this trade though it had already run up 55 points in the short span of time in the morning and there were chances of consolidation. Luckily IRH worked as a Flip here and trade moved in my favor but it did consolidate. Booked it at 9 points of profit after 45 minutes into the trade as it seemed not moving further down.
Then it started trading in a narrow range.
2) BOF of IRH.  It moved well. Booked it when it was refusing to go further down PDL. Thought cluster of DPs like DO, LOD, PDL, RN were holding the move.  Profit of 28 points.
Then there was a pullback which proved to be a complex pullback.

3) BPB of PDL.  Thought I was taking the chance as there was NS BRN 7800 and Monday's low very close. But it worked.  It halted some at NS BRN and then sold off.  Booked it at the end at 74 points of profit.
What a fantastic day it was!!  All thanks goes to the great ST for giving this wonderful system to the world.

Tuesday, 14 October 2014

14102014


Today Nifty opened 30 points full gap up but immediately sold off.  Then it bounced up to BRN but could not sustain above it.
1) BOF of BRN. Shorted below  minor swing low.  It broke the day low and moved to RN as expected.  Booked at 25 points of profit on FTC below RN.
After that it remained in a range and broke out of range on upside.  Was not confident, avoided taking this trade as there was PDH and HOD above.



Monday, 13 October 2014

13102014


















Today Nifty opened full gap down around 50 points.  It seemed like Nifty took support  at the prominent Flip on a daily chart and NS BRN 7800.  IR formed.  Avoided going long above IRH as there was RN above.  Finally took a long above RN.
1) BPB of Range High.  It moved as expected.  Once it broke PDL on up side, trend accelerated.  Booked at 70 points of profit on the first sign of trend weakness. 

Friday, 10 October 2014

10102014


Today there was a CT full gap down.  First candle acted as MC.  Avoided going short below it because of BRN and gap area created on yesterday.
1)  BOF of BRN.  This did not move.  It remained in narrow range and refused to move up.  Scratched it at 4 points of loss.
Then there was BO of PDL and HOD.  Avoided going with BPB as I suspected channel move.
2) BOF of PDL.  Shorted below the MSP.  It moved slowly but well.  Booked when it felt like not breaking the LOD.  Profit of 31 points.

Wednesday, 8 October 2014

08102014


Nifty again today opened full gap down and moved up straight immediately.  Expected today as a range bound day as yesterday was a big down day.  As expected it traded in a roughly 40-point range. 
1) BOF of LOL BRN and Range High.  Entered below PDC. It moved to the range low and bounced.  Covered at 13 points of profit.
2) BOF of Range Low / LOD. It moved as expected.  Covered when it came back into the range. Profit of 24 points.

Tuesday, 7 October 2014

07102014


Nifty opened full gap down below the last two trading session's low.
1) BPB of PDL on break of IRL.  Entered after PP kind of formation.  But it did not move well.  Scratched it once it came back into the range.  Loss of 3 points.
Did not take any other trade as I was busy afterwards.

Wednesday, 1 October 2014