Market
Commentary
Pre-Market:
Nifty trading in 2 ranges from last 2
weeks. 9600-9640 & 9640-9700
Yesterday touched low of range 2, but
closed above it.
If gap up, should see if sustain above PDH
and trade in range 1 (Or) if gap down, should see if sustain below PDL/BRN
9:40 AM: Price gapped above PDH and
sustained so far, will see PA if pulled back to PDH now
10:00 AM: Price reached PDH with bearish
bias, after strong rejection from RN. will wait for better setup to take any
trade decision
10:19 AM: Potential trade - BOB of PDH short
at 9633 with Initial SL 9646, FTA PDC 13 points away. Not a good R:R
10:50 AM: Not comfortable in taking BOF of
PDH long, as price making narrowed moves and tail bar at open makes me nervious with long attempt at this juncture
14:00 PM: Placed BOF of PDH long at 9645
14:20 PM: Cancelled as price sustained
below PDH long
13:35 PM: Trade1: BPB of PDH short at 9637
with Initial SL 9645, FTA PDC 17 points away
14:40 PM: Moved SL to 9641 once price
reaches PDC
14:54 PM: Moved SL to 9627 as price settling
below PDC
15:00 PM: Moved SL to 9623
15:10 PM: Exited with gain of 12 points
Points earned: +12
Hi, thanks for the chart and nice explanation.
ReplyDeleteI would like to know why is PDH valid dp even after prices going through it from both sides ? Is it because of the 2 ranges that NIFTY trading in ? Thanks.
Chirag,
DeleteGenerally I consider BW only when I see price making 2 swing highs above DP and swing lows below DP.. in today's context, I don't see this happened..also price respected PDH for 3 hours.. this PA signals me not to rule out PDH as DP.
Also when it broke and seems to be reversing, I placed long order which cancelled after seeing 3-4 bars below PDH..later as price struggling to cross PDH, attempted short entry as risk is with in limit..of course with scratch mindset.
Hi Rose,
ReplyDeleteOne more question! Could you please explain how to read PA when there is tail bar at open in a particular context? What does it mean? Thanks!
I take if tail bar in context of ongoing bias.. ex: if price gapped up above PDH, leaving upper tail immediately.. indicated bearishness and i look to trade short as BOF of PDH... viceversa for tailbar below PDL, i look to trade BOF of PDL long with SL below tail bar low. Other than this i dont think much about tail bars.
DeleteOkay thanks!
Delete