Friday, 6 January 2017

Bank Nifty & Nifty Future 06012017


It broke out PDH in the opening candle.  Attempted a BPB long trade which turned out to be a very good trade.


It opened above PDH but soon started trading below it.  There was not any proper setup to short below PDC.  Later it formed a barb wire range and traded within it for majority of the time.  Waited for a good BOF setup which did not happen.

Proper understanding of "move and rest" concept and barb wire is very much essential in price action trading.  Only pattern trading is not going to work. 

7 comments:

  1. Well Said Uday.. Pattern trading is a dangerous,,
    Prabakaran

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  2. Good to see your made good trade today. Quick qst. Why did you just traded Bank Nifty and not Nifty in morning? Any specific reason.

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    Replies
    1. Purav

      There was type 1 trend day yesterday for Nifty. After such a day, we can expect rangebound movement the next day. That was one of the reasons to avoid BPB long in morning. Secondly, Nifty has not been showing good momentum for last couple of weeks. So why to expect today it to show momentum?

      BPB setups are good setups only when prices are moving with momentum. You waited for the BO to occur, after the BO you even waited for the pullback to occur. Now after this pullback, prices should move with momentum. If that is not happening, better to wait till prices start doing that.

      URD

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    2. Eye opening explanation of BPB..Thanks Uday

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  3. Thanks for your post, Uday.

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  4. today I took one trade in nifty BPB of range low finally scratched it

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