1) Took BOF Long at S/R line. Got 23
pts.
2) Shorted with a Limit order at S/R
line as the up move was with low momentum. Gave 6 points. Should have waited
till price hit SR line and then decided. Limit order shorts at Range boundaries
seem to work better than SR lines.
Disclaimer: I am not a Research Analyst,
registered with SEBI/MCX or any Exchange. I maintain this blog only for my own
learning purpose and recording my thoughts on intraday activity of Market. I do
not give any kind of trading advice to anyone. My methods will result in severe
losses. Hence please do not follow me.
Hi Karthikeyan,
ReplyDeleteI think that the momentum is not less in the up swing at your 2nd trade. Slope is same as the previous swing and decrease in one or two candle ranges at an s/r normal. May I know why you thought that the upswing is weak??
Hi Jagadeesh,
DeleteI thought that the momentum should be more than the previous swing, if it has to break out successfully. 3 small candles made me think that price is decelerating. As you rightly pointed out, momentum was not less than previous swing and I didn't read it correctly.
When a SR line is tested for the first time, it is better to wait and confirm the price action before placing orders, regardless of strength and weakness. On the second attempt, we can be little bit adventurous, if I may say so. Would like to know your views.
Thanks.
Yeah.. We need evidence of weakness at s/r to initiate the counter trend trade. But absence of strength is not sufficient to initiate it. Stall, rejections, decelerating swings, decreasing projections and increasing depths are the signs of weakness..
DeleteThanks Jagadeesh. Good Night.
Delete