Disclaimer


The author is a SEBI Registered Research Analyst (INH000004796) and a NISM certificate holder in Equity Derivatives Market. The certification is provided by National Institute of Securities Markets.

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Monday, March 31, 2014

Divergence on Tata Steel on hourly



          Hourly divergences can provide some very good returns !! This one is on Tata Steel.

31/03/2014


Nifty gaped up but sold off. Went short below IRL. Was trailing around PDH/PDC level. Nifty cracked but could not retrace the entire fluid. An engulfing bar stopped the downfall. TP at 6720. Did not take the BOF
trade.

Friday, March 28, 2014

28/03/2014


Nifty gaped up. IR formed. Went long above BRN 6700 at 6705. Most of the time a barbed wire formation was taking place. But still held on to the long with trailing SLs marked as 't'. TP at 6730.

Thursday, March 27, 2014

27/03/2014


Nifty opened near PDC. Went long above IRH. TP at PDH. For a long time prices hovered between PDH and RN 6650. Went long above RN for a 20 point move. Did not take any other trade.

Wednesday, March 26, 2014

Tata Steel on 5 min ( 26 march 2014)


       DP trading can also be tried on liquid stocks. Paper trade Tata steel and find out for yourself.

26/03/2014


Nifty gaped up. IR formed with DO as IRH. Short below IRL. This trade did not move. Scratched it.
BOF range high was another short. Went short again below IRL. TP at BRN. There was an opportunity to go long above BRN as BOF LOD. Did not take the trade.

Tuesday, March 25, 2014

25/03/2014



Nifty gaped down but recovered. The price got rejected at PDH. Went short on lower top formation and BOF BRN/PDC. The IR was wide but during the course of the day it was clear that the orders were at 6590. TP at 6590. Got 10 points. Long on TST of range low. TP at 15 points. 

Monday, March 24, 2014

24/03/2014


Nifty gaped up. Did not get a chance to enter. Was waiting for a PB. Long on TST of range low. TP at 6605 as the price failed to cross the HOD

Friday, March 21, 2014

Internet's day out!!!

Had to abort trading midway  due to internet connectivity issues.
Not posting chart as its incomplete.
Will try to post in the evening as hindsight.

Thursday, March 20, 2014

20/03/2014


Nifty gaped down below PDL. IR formed. PDL was IRH. Went short below IRL. Trade proved me wrong. Had to cover right away.Covered it above IRL. Shorted again as TST PDC for 20 points. Another trade was using puts. Took BOF IRH short through puts. Bought 6500 Put at 40, sold at 55 around BRN.


Wednesday, March 19, 2014

BOF on Tata Steel on 5 min, And the move!!!


I have been following Tata Steel(TS) for some time now. The chart shows TS on a 5 min frame. Notice how 350 acted as tough resistance and 340 as support. Tried to stay below 340 but could not succeed. Finally a BOF  and trapped traders taking the price well above the resistance 350.
                                                     A copy book BOF, I would say!!

19/03/2014


Nifty opened above PDC but could not sustain. Went long on BOF PDC. TP at IRH. FTC was another chance to go short. Went long on TST RN 6550. TP again at IRH. Did not take any other trade.

Friday, March 14, 2014

14/03/2014


Nifty gaped down below PDL and BRN. Went short as price tested BRN. TP as the second push failed to go below 6470. A long consolidation for almost 2 hours. A copy book PP pattern formation as BOF of range low occured. Missed this trade as my terminal froze.

Thursday, March 13, 2014

13/03/2014


Nifty opened near PDC and spiked. The next four candles showed where the orders were. Thus IR formed.
Went long on BPB PDH. SL hit. Did not take any trade till the fag end as it was very tight range. Short on BOF PDH. TP at 6520 NF

Wednesday, March 12, 2014

12/03/2014


Nifty opened below PDC. Thought of shorting below PDL and 6520. But price did not stay below 6520. Did not get chance to enter long trade. Went long as BPB PDC. Was out of the trade when price came to my buy price. Shorted on TST PDC at 6550. Covered at 6530. Did not take the last trade as Nifty had already got choppy.

Tuesday, March 11, 2014

11/03/2014


Nifty opened near PDC and spiked. IR formed. Took long BOF PDC. Got out of the trade when price broke PDC. Went short on BOF PDC at 6560. TP at 6535. Did not take BOF or BPB RN. Went long on TST then range low. Another reason was that 6535 was tested 4 times till then since last trading day. TP at 6550. Again went short on TST RN. TP at 6530. Did not take last BOF.

Monday, March 10, 2014

10/03/2014


Nifty opened near PDC with a spike. IR formed. Went short below PDH as BOF IRH. TP at 20 points. A range move of about 20 points occurred between 6530 and RN 6550. A tweezer bottom at 6535 gave a long signal but went long only above RN 6550. Took it as a PP. Entered at 6555 and TP at 6580 as trailing stop hit. Done for the day.

Friday, March 07, 2014

07/03/2014


Nifty gaped up above PDH. IR formed. Went long on BPB IRH. TP at 6520 which was NS BRN 6500. Again went long on BOF BRN 6500. Trailed and TP at NF RN 6550

Thursday, March 06, 2014

06/03/2014


Nifty gaped up above PDH. Second candle tested PDH. Thought of going long there. But did not. IRH marked as high of first candle. Short on BOF IRH. This trade did not move as I expected. Had to scratch it.
Went long above range high as direct BO as undercurrent was bullish. Trailed this trade all the way upto 6425. TP at 6425.

Wednesday, March 05, 2014

05/03/2014


Nifty gaped up but sold off. Took support at PDH but eventually cracked. Did not short as the next candle was indecisive and was at supports. Went short on second test of PDH. A pin bar at DP(PDH) gave the confidence. TP at 6320 when price starting reversing. Predicted a PP(Pressure Play) above 6320. Went long on 6325 to TP at 6345. In hindsight could have trailed with PDH as stop. But did not. No other trades.

Tuesday, March 04, 2014

04/03/2014


Arrived late for trading. Nifty opened above the gap closure of 6240. By the time I started trading the BO above IRH had already occurred. Took a direct entry as there was enough space for PDH. TP at BRN. Long again on small BPB of indicated range. TP at 6330

Monday, March 03, 2014

03/03/2014


Nifty gaped down. IRH formed. PDC just above IRH. Did not go long as too many layers above. Also formation of rejection bars at Range high. Went short due to all these reasons below PDC. Covered the position at 6240 gap closure. A minor PB to PDL was a chance to add shorts as critical mass was short and all initial stops were taken out.