Wednesday, July 2, 2014

Check List -- Before Initiating Trade

QuestionAnswerRemarks
Day TrendBearishBullish or Bearish or Sideways
Initial BiasBullishBullish, If DO is above yesterday closing range & nifty formed IR above yesterday close range.. viceversa for bearish
Check if any DP's at/around IRYesIf yes, trade DP's
Which pattern you are going trade?BOF of BRNBO, BOF, BPB, TST, FTC
Check space for tradeYesatleast 10 points to move for the trade, i.e. FTA 10 points away
Is Critical Mass favouring your trade?YesHow day traders are positioned? Are they in profit? When they are going to book profits? Where they will panic? Who is in control of the Market?
Is Order Flow favours your trade?YesWhere are the orders? Where other traders will keep their stops? Where we should enter to ride these orders?
Are you risking more than 10 points?NoInitial SL should not be more than 10 points
Note:

After trade initiated, manage it by hiding SL behind DP's, Swing high/low, Flip Zones.
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5 comments:

  1. UnknownJuly 4, 2014 at 9:45 PM

    Hi Rose Mary,

    Thanks for your checklist..It is very much helpful for novice traders like me.
    I am not getting 2 points in the checklist, Is critical mass favoring your trade? and Is order flow favors your trade? can you throw some light on this pls.

    Kiran.

    ReplyDelete
    Replies
    1. Only NiftyJuly 5, 2014 at 1:38 PM

      Kiran,

      In remarks it is mentioned "How day traders are positioned? Are they in profit? When they are going to book profits? Where they will panic? Who is in control of the Market?"

      Suppose, a day started just above PDC.. moved 50-60 quick.. formed range of 10 points.. traded in range for about 3-4 hours.. near EOD, if a BO occur on down side of range.. it qualifies for nice SHORT trade..

      Because..
      DAY traders who are sitting on profit from DO.. will exit here
      who bought above RH, place SL below RL.. mostly
      Fresh shorts also come anticipating trend change.

      this situation we call as Critical Mass favouring the trade.. this is what i understood from ST Sir write up.

      Also, reg Order Flow.. today short opportunity below PDL is good example.. same level is tested 3-4 times.. day traders in profit, must have this level as SL.. also fresh intra shorts will be added below this level.. this is good location to attempt short.. it worked well.

      Delete
  2. Joe PJuly 6, 2014 at 1:52 PM

    Thanks for the excellent write up on crtical mass and order flow ,still learning

    ReplyDelete
  3. zenJuly 18, 2014 at 5:57 PM

    wonderful write-up... i too read ST sir's blog....but I relearned today... thanks for your efforts

    ReplyDelete

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