Monday, July 28, 2014
Sunday, July 27, 2014
I was always of the opinion that a trader should have atleast one method each for Intraday and Positional. One might have more than one method also. The trader uses which system depends on his comfort level with the system vis-a-vis risk. With ST's method, the issue of daytrading is solved. This method works wonderfully on liquid instruments. I have been searching for a while for a Positional method. I did not want the method to be based purely on indicators. I wanted that the Positional method should also depend on the reality of the market and not on some indicators. One method is mixing an indicator with price action. For ex: Divergence of MACD/RSI along with Price action. So in this system the Positional trades would be taken only if there a Divergence.
The other method was pure Price Action where the use of Pivots is instrumental. I came across this method while searching on the net in a icharts forum( Mr. Pateek Singh of Marktscientist.in had told me about this in a conversation). The article was composed by a user 'Saint' (Frequent forum visitors might be aware of it). In fact this method uses a mix of Pivot and BOFs. A PDF of the working is available on the link. Click Here.
(On the page ,scroll down for a 'Download link')
Anyone one interested in using this method can use it as it is or with some tweaks so as to suit their personality/Risk Capacity. The chart posted is old(when Nifty was at 4000-4700 levels) but the principles remain same. The example explained is on a 60 min chart. Again the time frame can be tweaked as per the requirement.
I sincerely thank 'Saint', Marketscientist.in for the article.
Friday, July 25, 2014
Thursday, July 24, 2014
Tuesday, July 22, 2014
Arrived late for trading. Was at the terminal at around 12 PM. Took BPB range low as first trade. TP at pin bar formation. Pin bar formation was around IRH. Went long after TST IRH and a higher low formation. Used options for this long. Bought at 75. TP at 96.
Short as BPB PDC. TP at 4 points. Long as BOF LOD, pin bar acted as confirmation. TP again at 4 points.
Monday, July 21, 2014
Friday, July 18, 2014
Wednesday, July 16, 2014
Tuesday, July 15, 2014
Nifty Gaped up and soon found it difficult to move past IRH. Two opportunities to short. BOF IRH and BPB IRH. Shorted as BOF IRH. If price does not perform one action twice or more, it usually does the opposite. Same happened. TP at PDC. Went long as BOF PDC. TP at PDH. Was thinking of BOF BRN there but the single black stopped me. Took direct BO long (as Nifty formed Double bottom at LOD and subsequently a higher bottom). TP at HOD.