Thursday, January 30, 2014

30/01/2014

Gapped  Down and a very narrow initial Range was formed. IRL BO ignored, as RN was closely located.  Placed a SL Long order at BOF-IRL. Cancelled it on seeing the poor momentum.  I should not have placed a CT  order, when the FTA is not broken in the direction of CT.

MSP  was never broken with sufficient volume; Minor BOF of  MSP didn’t attract sufficient volume.  TST of  MSP was noticed. Since it is a low probability trade (and with RN around), this trade was not taken. Then BPB of  RN was there to be grabbed. As I was focusing on BOF in the direction of trend, this too was ignored. Price action centered around RN 6050 for the major part of the day, highlighting its growing importance, more so on and near expiry day. 

Then big boys took over towards the end of the day going on a buying spree, rocketing the price up by 50 points from Day Low to Day high in a jiffy, reminding everyone that today is expiry day. 

So, no trades for the day.

   
 
 











 

5 comments:

  1. Hi Karthikeyan,

    Good....:)


    I took two trades today....check the graph...
    http://tinypic.com/r/300xwt1/8
    Let me know your comments.???


    Thanks,
    Mahesh

    ReplyDelete
  2. Hi Karthikeyan Sir,

    What is "CT order"?

    Minor BOF of MSP didn’t attract sufficient volume??? Could you pls tell me what is "Sufficient Volume"?



    Thanks,
    Mahesh

    ReplyDelete
  3. Hi Mahesh,

    Good trades. Even the seniors do not trade on expiry day, but you had done successfully today.
    First I am not sure, whether I am good enough to comment on your trades. Going by the trades of the last few days, we can safely conclude that you are a better trader than me.

    Anyway, my views are here. Please don't attach too much importance to my views, as I am a novice trader.

    1) First trade: RN 6050 was nearby. Having entered here, you could have watched price action near 6050.As expected, there was a BOF in RN. You could have exited on seeing the inside bar at RN. Luckily for you BOF failed and gave you another chance to exit at a better price. If BOF happened with some more volume, your SL might have been hit.

    2) Second trade: Entry and exit were perfect. Nothing better can be done here.

    Let me repeat. I am a novice trader. There is a strong chance for my views to be wrong.

    Thanks
    S.Karthikeyan

    ReplyDelete
  4. Hi Karthikeyan,


    I dont mind for your valuable comments....After discussed with you I understood that, you are good enough with the DP..basics..May be by luck i got today...that may be fail tomorrow...

    You are giving very good comments...everything is valuable...here no one is better and best...we are learning...

    Happy to discuss with you....:)

    Thanks,
    Mahesh

    ReplyDelete
  5. Hi Mahesh,

    CT - Countertrend trades. Today the trend or bias was bearish and the best option would be to short on rise.

    Regarding volume: I am not sure about the correctness of my view again. From my limited experience, I can say that if the BOF volume is more than 3 times the volume of neighboring candles, SL of trapped traders will take the price in the reverse direction. Having said that, the location is more important. BOF with less than 3 times volume at important DPs like PDH, PDL, PDC and BRN are reliable, I believe.

    Thanks
    S.Karthikeyan

    ReplyDelete