COMPARING MY YESTERDAY STATEMENTS WITH REAL MOVE IN BNF.
1. Before starting this blog I would like to congratulate to one of my esteemed followers Mr. Arvind who is a discipline trader and this quality makes him different from others. I have been observing him for quite sometime, he is regular earner from this market. In fact , the urge to learn and be focused on his trading makes him daily earner. See todays comment box you all will be amazed by his logic to take trade and exit. Whatever I shared in previous posts , He still remember all basic points and implements in his trading room. Yesterday I did not carry any position in long side whereas he carried , when booked profit at given green dotted zone , He gave good reasons of enrty which took in second candle . Means one position carried forward in long side aand intraday entry on 2 candle. This is how trading is done. The main thing is that he tries to understand concept and remenber all previous important points while trading. That makes him Disciplined. One more thing I like how, He helped others in trades by make them remembering all points time to time to which I shared in my previous posts. That is why I tell every trader to vist comment box of previous day when current post is finished . There you will get many trading tips in form of questions and replies.I never prefer private chat until and unless thing is really private. Just because every question asked in private chat , I would like to reply publicly sothat others can also be benifited. That is the main reason to discourage private chats. I am happy slowly-2 people are understaning market and earning by helping each others through comment box. Serve people selflessly as I try to do, sharing my skill to all . If you undersatnd any concept help your co-trader. That culture I want to start in comment box.
2. Now In yesterday post in point no.1 clearly mentioned that, I quote for you " If dow sustains its gain then only gap up open can turn this resistance into up trend move." . You all can see bnf opened gap up and made a very special candle circled in green whenever you see this type of small doji in starting of uptrend then get ready for good rally. This is valid for upward trend only. when I started my career , while reading candlesticks I came through this candle from that day to till now I caught many rallies on this basis of course today one. In my last thursday post I told you that after crossing green dotted line price can go to blue line . If crosses this then sentiments will change to long. See yourself market crossed blue line and gave 400 pts rally . One of my followers was ready to short at green zone in Frustration because he missed rally to green zone . Thanks To Mr. Arvind he remianded him my instructions. Later on when price crossed blue line He also took entry with sl of that line and made good profit wrote himself in comment box. He should be thankful To Mr. Arvind to save him from such big loss.
3. In thursday post I mentioned that to travel the distance till zone will take time. Same happened took two days. See whatever be the circumstances by news My analysis never get failed because I manifest the conditions of trade first then go for entry. keeping all conditions mentioned in my mind. Can you take out any post now in 100 nos. where my conditions gets failed. Nope single time. This is the game of switching of sentiments. One should put hard work in education. Rather getting tips from others. Stand on your own.
Trading Plan for next day.
1. See one thing is clear that Micro structure of down trend has changed to intermidiate structure of down trend. Otherwise micro pullback did not convert into deep retacement by taking out blue line.
2. In fig. I took my position when 1 candle got completed and did not breach the red dotted channel line and made small doji .With this candle I took my entry . See one needs to be so skillful to draw channels like I showed in red channel( upper end removed) that gave me clear vision with candlestick support for my entry.This is classic channel I made yesteday, people even cannot think about it with perfect move catching. I booked my 1 position on lower end of green channel Where Mr.Arvind booked. Then price entered into no entry area on either sides shown in white color arrow. This area is very dangerous where trend could take u Turn.2nd position I took with the sl of blue line booked near green solid line.
3. I made pink , green zone either trend can change to down from this zone or can change to red resistance. In any case price takes out red resistance then down trend will switch into main trend upwards. Onthe contrary if red line is not breached and taken out then down trend will start after this deep retracement. I cleared every condition take your trade accordingly with sl. Rest market will decide.
@yvatsji , Sir my exp. today and need you guidance where did i make a mistake.
I waited 2 hours to get the entry near red resistance line which is 19330...I took the entry with Short (19350) when it breached the red resistance line and put the SL as 19450. when 11:15 candle was over and red resistance line is being taken out, then i cover the Short at 19370 and book another position at 19340 with SL 19210 ( lower shadow of previous candle) and it hit my SL and came back to 19300....
Now, please advise on the following:
> As per the analysis, long position should be taken when red resistance line is being taken out and act as support where as in this case, it didn't happen. Need to understand the concept behind it.
> Secondly, what should be the SL as BNF move is so frequent ( up & down). Should we wait for the candle to close at :15 of an hour and then decide our SL. Please guide me on this prospective as well..
I want to learn the techniques no problem in loss as i did the right thing today in taking positions as per the chart but could not able to decide the SL where as for a successful trade, SL is must and we should know it....I am reading Candlestick book thourghly and it is in the process...
bharatja9
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@wadhwaamit4, sorry ro interject, but like sir said that if price closes above 19330 one can see a change in trend so in my understanding, to be more clear you should have waited till 12.15 candle to close above the red resistance line. Because that would confirm the strength of the bulls and go long there with sl as 19330. You should not have shorted there at 11.15 because price was in a strong uptrend basis price action. Also at the candle close or before 12.15 the price breached the red resistance line to come back below it and one should have shorted then with the same red resistance as sl.
19300 is a strong support in the previous trading sessions as now it acts as a resistance on a hourly basis.
So can't say you made a mistake, but it was more of a technical error in understanding what sir had written. More importantly remember to be patient, there's always a Next trade and it is okay if you dont trade on a day. Make capital conservation your priority and your style will change. Dont have FOMO.
bharatja9
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@wadhwaamit4 One more thing just because the candle breached the red resistance line not necessary that the next candle would sustain. In candlestick charts and price action the next candle is always important to initiating or staying away from the trade same applies for candlestick patterns.
wadhwaamit4
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@bharatja9, Sir you are right as 11:15 candle taken out red resistance line and waiting another hour candle is not right. it may right for today as direction got reversted otherwise if upward trend resume, then waiting 1 hour will not give you the entry point. I may be wrong here as i didn't monitor another 15 min candle which do support your position.
arvind6261
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@wadhwaamit4, amit ji i am not a right person to explain reg your trade sir ji will explain in deep. but i would like to put few points on your trade.
first of all which time frame candle you use for entry and exit ? if hrly then why you were waiting after 1st hour. you could have gone long and a profit of aprox 100-200 pts can be possible as you know red resistance line was there. if you had no trade no problem, but never set yr mind for one direction. if you like shorting it could be done on start of 4th hrly candle then as goes down keen on trailing sl, as i did with profit of 165 points. you must have a plan how to trade never catch it just play it. rest all sir ji will explain.
wadhwaamit4
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@arvind6261, Sir, i bought the position once 11:15 candle taken out red resistance line and second candle was showing selling but has take support from resistance line. Although you are right, that i should have taken another position of SHORT after 12:15 when candle breached the red resistance line. I got the answer from Sirji in his recet post that 90% taken out works but today follow up buying was not seen and hence Long position can not be taken.What i understand now is:
Take the position as per sir resistance and support line by checking the candle pattern of 1 hour along with next 15 min candle. @yvatsji , Sir please correct me here. Also, please advise on SL..as BNF move so up and down that you can't keep small SL of 100 pts or can we...Appreciate if you can share your thoughts around SL.
yvatsji
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@wadhwaamit4, t think your big query has been answed in today's post. Try to understand what I am saying.
biplab86
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@yvatsji sir,you said, " whenever you see this type of small doji in starting of uptrend then get ready for good rally" ..sir, is it necessary the candle should be Day's first candle? thanks for ur analysis. sir, I eagerly waiting for ur post everyday. u r a gr8 teacher. thank u sir.
yvatsji
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@biplab86, it generally appear when trend starts after few candles. never be first candle.
I waited 2 hours to get the entry near red resistance line which is 19330...I took the entry with Short (19350) when it breached the red resistance line and put the SL as 19450. when 11:15 candle was over and red resistance line is being taken out, then i cover the Short at 19370 and book another position at 19340 with SL 19210 ( lower shadow of previous candle) and it hit my SL and came back to 19300....
Now, please advise on the following:
> As per the analysis, long position should be taken when red resistance line is being taken out and act as support where as in this case, it didn't happen. Need to understand the concept behind it.
> Secondly, what should be the SL as BNF move is so frequent ( up & down). Should we wait for the candle to close at :15 of an hour and then decide our SL. Please guide me on this prospective as well..
I want to learn the techniques no problem in loss as i did the right thing today in taking positions as per the chart but could not able to decide the SL where as for a successful trade, SL is must and we should know it....I am reading Candlestick book thourghly and it is in the process...