Friday, 22 May 2015

22052015


I could not trade today, however the following is what I have analyzed.  Nifty opened at BRN and broke PDC.  There was a good pullback entry possible at PDC as marked.  Second entry long could have been taken at Range Low of consolidation.  Then there was also one good shorting opportunity at Range High of Spike and Ledge pattern.

8 comments:

  1. Thanks for your analysis.
    But, how can one take the first long trade. Market was in full chopp zone, not showing any intention to either break out on the upside or on the downside. Market had not given any indication in the opening that it will breakout. Won't it be trading at the middle of the tight range.
    Thanks
    TiZ

    ReplyDelete
    Replies
    1. TiZ

      I looked at it differently. I thought it was going up, why? Opened above BRN. First candle which was a WRB(wide range bar) broke PDC. So the scenario is, it is above three DP's. (BRN PDC and DO), initial move up, and PDC is able to hold the pullback. So bias is bullish and we look to go long. Where? We can enter at the pullback as marked, above the first candle high after the pullback, as direct BO of PDH or BPB of PDH. I chose to enter at low risk.

      URD

      Delete
    2. Thanks URD. I appreciate your help.

      Delete
  2. Daveji,

    Very good analysis. Regarding the Long at Range Low ---- price went up too quickly, after touching RL, I think. Is it possible to get some confirmation here abt RL holding or we have to take a blind long trusting the strength of Range Low?

    Spike and Ledge short is a master stroke, I think. I can spot spike and ledge long, but I can't spot such spike and ledge short. That is sheer brilliance. Sure, this analysis of yours will let me spot such set ups in future.

    Thanks for sparing your time for EOD analysis, despite not getting time to trade.

    S.Karthikeyan

    ReplyDelete
  3. SK

    Thanks. There was a spike once it broke PDH and we can expect some range kind of formation after the spike. It was trading above PDH and at that time I felt there was a type 1 kind of trend day in formation. Marking is made at the third attempt to break the established range at range low. We get a low risk entry when we buy at range low. Here price trading above PDH also favored. We can enter as soon as we feel it is not breaking. Here maybe after green engulfing bar.

    Yeah today luckily could spot S&L pattern. It is really a fun trading such patterns.

    I always try to analyze the price moves whenever I get time. Many a times I try to sneak in even if I am busy. Preparing the chart using paint brush and summarizing the thoughts and putting them in a blog post requires at least 15 minutes. Sometimes I cant spare those 15 mins during the day and I skip making the post. That is it.

    You, TiZ, Xrtrader, Bhavir, TBP are doing wonderful job recording your trades and thoughts and making the blog posts everyday without a miss. It requires a hard work, I know. Keep it up.

    URD

    ReplyDelete
  4. Daveji,

    Thanks for the detailed reply. Have a great week end.

    S.Karthikeyan

    ReplyDelete
  5. What is S&L pattern? Could you please pass any references to that? Thanks

    ReplyDelete
  6. Anon

    It is a spike and ledge pattern, basically a consolidation after the spike where we look to position ourselves after the consolidation.

    URD

    ReplyDelete