Todays trades needs a little analysis.
NIFTY open tested 4914 and close below this level, but never pulled back to the level to trigger a sell. It went all the way down to 4859 and we marked the trend as down. This shows the inherent risk at buying 4859 after an established down trend. As per the trading rules, nifty was bought at 4859. Later there is Industrial output news at 11 scheduled ahead. Keeping this in mind, the position was sold at 4970 5/10 minutes before the news event. Managed 11 point profit. When news are due, in what ever case the small SL is not likely to survive the volatility if trading is near the SL level.
Later DLF triggers buy at 211.50, which was also in an established down trend. Here also like NIFTY we did not got an entry at 218.40 and we bought in an established down trend as per our trading rules. Note that the trend is also marked down. It then rotated for 2 hours above our buy level, in such cases experience traders can exit the position. But keeping this as a SL hit as per the rules.
NIFTY open tested 4914 and close below this level, but never pulled back to the level to trigger a sell. It went all the way down to 4859 and we marked the trend as down. This shows the inherent risk at buying 4859 after an established down trend. As per the trading rules, nifty was bought at 4859. Later there is Industrial output news at 11 scheduled ahead. Keeping this in mind, the position was sold at 4970 5/10 minutes before the news event. Managed 11 point profit. When news are due, in what ever case the small SL is not likely to survive the volatility if trading is near the SL level.
Later DLF triggers buy at 211.50, which was also in an established down trend. Here also like NIFTY we did not got an entry at 218.40 and we bought in an established down trend as per our trading rules. Note that the trend is also marked down. It then rotated for 2 hours above our buy level, in such cases experience traders can exit the position. But keeping this as a SL hit as per the rules.
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