I am not a certified analyst. The charts shown and the content in the blog are for educational purpose only and in no way is a buy or sell recommendation. Readers are advised to use discretion.

Thursday 9 January 2014

Intraday Trades - 09.01.2014

Positional: No good sign of longs till yet. It is not able to cross 6200..
Intraday: Market didn't give good momentum candles in the morning. All were showing profit booking. A Hammer alerted for trend over, but no longs. Market consolidated & gave the Opportunity.
1) Short on Shooting star on UBB in ranging BB. Got 10 pts here.
2) Long on the BOF of day's low after a Tag on LBB. Trailed the SL & got 10 pts

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5 comments:

  1. nifty for bread9 January 2014 at 18:14

    Sir, You are using Boellinger bands and candle patterns to decide on your entries at DP. Can you please briefly explain about your method?
    S.Karthikeyan

    ReplyDelete
  2. Deven Malhotra9 January 2014 at 18:32

    Hi KS,

    Who is Sir here ?.. Its Deven only !!

    & For my BB entries, Plz visit my posts in header- Bollinger Bands in the last of this Blog. If any clarification is required, plz let me know..

    Thanks,
    Deven Malhotra

    ReplyDelete
  3. nifty for bread9 January 2014 at 19:20

    Thank you Deven for being so helpful and informal.

    When you took the second trade today, the middle Boellinger Band was sloping down. What was the reason for ignoring this and taking the trade?
    .
    1) Below is my basic understanding of your strategy. Please correct me,if my understanding is wrong.
    a) Middle Boellinger Band must be either flat or sloping up for long and sloping down for short.
    b) You are entering on the 3rd reversal sign. 3rd reversal sign means the third red candle after the shooting star or inverted hammer at UBB for shorts and vice versa.

    2) Sometimes, you enter at middle Boellinger bands. Here you wait for any specific candlestick patters or just enter at the breach of a range?

    3) When I enter a trade at the BOF/FTC at a support, the price retests the support and sometimes hits the SL too and again moves in the direction of my trade. When I expect it to retest the support, it just goes away on a quick rally. Today, too I expected the price to test the Day Low once again. But it didn't. You had correctly judged it and entered Long(your second trade). Is there anything else, we must watch to confirm whether price will retest the support or not? If we see Tag on LBB before the BOF patterns of hammer and shooting star, is it a sign that the price may not retest the support?

    4) Lastly where do you keep the initial SL? at the DPs?

    Thanks, S.Karthikeyan

    ReplyDelete
  4. Deven Malhotra9 January 2014 at 21:07

    Hi KS,

    I will try to explain to my best & the rationale behind the rules -

    a) Middle Boellinger Band must be either flat or sloping up for long and sloping down for short.
    Ans - Yes, 90% of the time. I am saying 90 % because, my intention is to enter any trade on a Retest. So, when mkt is retesting a DP or BB, mid BB generally becomes flat or in trade's direction. But if the retest are more, mid BB direction can be ignored. So 1st Reversal is automatically avoided.

    b) You are entering on the 3rd reversal sign. 3rd reversal sign means the third red candle after the shooting star or inverted hammer at UBB for shorts and vice versa.
    Ans- 3rd Reversal is mostly from UBB & 2nd from LBB as Top takes time to form. It means 2nd test of BB, not 3rd candle. But entry on the candle after Hammer or Shooting star confirmation.

    2) Sometimes, you enter at middle Boellinger bands. Here you wait for any specific candlestick patters or just enter at the breach of a range?
    Ans- DP breaks, Gap Candle, Doji/ Hammer & 2nd Strong candle

    3) When I enter a trade at the BOF/FTC at a support, the price retests the support and sometimes hits the SL too and again moves in the direction of my trade. When I expect it to retest the support, it just goes away on a quick rally. Today, too I expected the price to test the Day Low once again. But it didn't. You had correctly judged it and entered Long(your second trade). Is there anything else, we must watch to confirm whether price will retest the support or not? If we see Tag on LBB before the BOF patterns of hammer and shooting star, is it a sign that the price may not retest the support?
    Ans- We can't confirm if retest will happen or not. But generally, Yes, for me Tag & FTC on LBB means no further retest, but a Close outside BB suggests that a Tag/ FTC is pending. Today also, i entered on looking at Hammer, waited as mid BB was down, price closed above mid BB with Doji. Next strong candle breaking DP made me enter the trade.

    4) Lastly where do you keep the initial SL? at the DPs?
    Ans - Yes Below DP or below nearest Pivot for Longs


    Thanks for going thru so deeply & asking such questions. I was trading from my subconscious mind & you made me revisit my trades with Conscious mind !!

    Regards,
    Deven Malhotra

    ReplyDelete
    Replies
    1. nifty for bread9 January 2014 at 21:27

      Hi Deven,
      Thanks a lot for the reply with all the details. When time permits, please post an article on your strategy for positional trades.
      S.Karthikeyan

      Delete

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