Friday, October 30, 2009

Stock Market Today - Flashback



Flashback




Nifty crossed long level and almost achieved first target.


From there, readers would have printed the almighty dollar as nifty triggered short level and


nosedived to target 2 of short.


Trading the bank nifty




I did a trade in bank nifty today which i would like share here.




See the following chart




BNF.JPG




BNF got resisted at R4 level at open, made a reversal bar at 10.15.




Now the low of 10.30 bar which is around 8615 becomes significant for the rest of the day.




As BNF is already above R4 i am not looking for any long trades.


A short will be created for me when a 15 minute bar closes below 8615.


Sure enough it happened a few bars later.


Now i wait for a retest of the 8615 area which happened 2 bars later and the retest failed.


So i entered short at 8588 with stoploss of 8615 at the close of the retest failure bar.


Two bars later, i exit with a bucket load of money at 8385, which is S1 level given.




A neat 200 points trade for a stop loss of 30 points.




R4 proved to be the winner level for today.






If any reader is using these levels to successfully trade in bank nifty, do share it with me with a chart


and i will publish it on the blog.

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