Tuesday, May 7, 2013

BN's bounce could continue keeping above 12254.

Author: Ilango | Posted at: 6:52 AM | |


5 comments:

Unknown on May 7, 2013 at 11:59 AM said...

Dear Sir
I trade JNSAR10.
I have a question.
On 3rd may I short at 12380 as per on that days JNSAR10 but spot bank nifty closes at 12396.
Next day luckily bank nifty opens down, but suppose next day bank nifty opens at 12406 ( on 6th JNSAR10 was 12383 ) ,opens higher than the JNSAR10.
Then what should I do?
May I square off earlier short & go long at 12406 or still I keep a stop lose of 50 points from my entry point of 12380.
I continue keeping a stop lose of 50 points till trade starts moving in my direction?
Pl. reply
With warm regards

Ilango on May 7, 2013 at 5:04 PM said...

@ shaileshkumar mehta,

On closing basis, the buy signal has been intact.

However, if you have shorted during the day when the prices went below J10SAR, you manage them with a 50 point Stop & reverse.

This 50 points filter helps you on 06th May to part book when it falls in the opening session and go long later on.

In case, if it had opened higher, you'll continue to manage them with a 50 point filter.

If you get familiar with the "Tech.Table", you'll be able to part book and re-enter based on the closes between DHEma & DLEma.

Get Rich slowly & quietly.

Unknown on May 8, 2013 at 2:10 PM said...

Dear Sir
Many thanks for the reply.I really appreciate your generous efforts in the support of other traders.
What I have learnt from your answer is that, I need to maintain the stop lose of 50 points until trade starts moving favorably in my direction.
In the context of above trade ( short at 12380 ) I need to maintain the stop lose of 50 points until my JNSAR10 becomes less then 12380.

Or if I part book at 12280 then my trailing stop lose will be 12380-10 points - brokerage i.e.12360.

So I need to keep a trailing buy stop at 12360.
Am I correct?
Pl. reply
With Warm Regards

Ilango on May 8, 2013 at 4:40 PM said...

@ shaileshkumar mehta,

On 03rd May, you sold when prices went below 12383 after 3.00PM.

Now you keep 12383+50 as SAR till next day's close.

Next day, on 04th May, you part booked on shorts when prices fell 100-200 points from your selling level. The remaining positions, you could trail it down to 12383(at cost since prices went so much lower to 12188 in the first two hours) or maintain it @ 12433 and "Longs" gets triggered after 3.00PM.

Now new SAR for the new longs is 12383-50=12333.

This filter is needed only for two days to manage the trade.

Unknown on May 8, 2013 at 10:22 PM said...

Dear Sir
Grateful to you for your detailed reply
With Warm Regards

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