Sunday, June 12, 2016

Reversal day - Day Trading: June 10, Intraday

Friday was a great reversal day. On Thursday, CNBC was telling us about how it was the first significant fall after the rise from 7700s. On Friday morning, there were analysts on the channel revising estimates upwards, and the afternoon there were analysts on the channel revising estimates downwards.

Nifty Price Action Chart

Missed upmove: In the pre-open, Nifty was below 8200, so I was hoping for a long entry around 8200, even before the trading session began, but I was fooled out of the upmove.

Day Trades - Live Tweets
Day Trades - Live Tweets

After open the VWAP stayed around 8216 for a long time, and I had no ideas while it was ranging. Then the price started creeping up slowly, and I still had no plan on how to enter.

Trade 1:  I saw a Pin Bar after some time, and took the counter-trend short. Even when price got back to creeping up again, I was hopeful that it would not crack the tail of the Pin Bar. And if it did crack, I could still look for longs above 8250. But crack it did, and how!!

After the spike: As it got close to 8300, it was obvious to start looking for shorts, but I decided not to trust my quick fingers. Then there was that period within the spike bar, where I could have gone either long or short.

Trade 2: Finally, I decided that the price had cooled down and went counter-trend short. After some hesitation, there was that crash. Moved my stop to just above 8200, hoping for a further crash, but the stop hit.

Trades 3 & 4: Made a couple more attempts to go short with the bias at pivots. Both were losses, but Trade 3 has an MFE of +14 points, but I still made a loss on it.

No comments:

Post a Comment