Opened with Big Gap up. Waited for RL to be formed. But soon
price hit PDH, filling the Gap in no time
1) Placed a TT Long at PDH, expecting
it to act as Flip zone. Cancelled the
order just in time. Missed the down move. Lesson learnt.
2)Price did not make a serious
attempt to test probable RH @8786. In fact retracement was less than 50% and
price was hovering just above the then LOD foretelling the next big fall. Shorted there and exited with
a Limit order @ 8702. Got 44 points.
3) Was surprised by another big fall.
Missed it.
Dear Karthikeyan,
ReplyDeleteGood going, keep it up.
I couldn't understand in second point "retrenchment was less than 50% ". Can you give me some more details about it.
Raju
Dear Raju,
ReplyDeleteSwing high made at 10.21 was 8788. Swing low made at 10.36 was 8745. So the length of this impulse was 8788 - 8745 = 43 points. The next corrective wave made a high of 8769 at 10.51. The length of this corrective wave(referred as retracement) was 8769 - 8745 = 24 points. In terms of percentage, it works out to 24/43*100 = 55%. Except this candle, most of the other candles retraced still less.
Normally, if price was about to consolidate or reverse after some consolidation, it should have made a serious attempt to test 10.21 AM candle swing high. This is what we see mostly after the climax of a vertical fall. As that didn't happen, I thought that climax had not yet come and another fall is likely.
You need not calculate precisely. Just see with naked eye, how much price has corrected with reference to the impulse. That is enough.
I am not sure, whether, my thought process was right, though I got it right, yesterday.
Thanks,
S.Karthikeyan
Noticed that Nifty made lower tops in case of 2 and 3. Did not cross any pivot point during the day
ReplyDeleteYes. I didn't see that in the live market. Will make it a habit to look for it in future. Thanks for the comment.
DeleteS.Karthikeyan