Day Trading Futures

[sudoku1]

Thanks sir for reply ,Where will you place your SL ?? and TSL ??

my sl wil b d lows of last red candle wid a candl close.

 

[Smart_trade]

Dow up 52 points SGX Nifty up 21 at 7932

Smart_trade

 

[RAAMAKANT]

Hello Friends,

Please advice which is the best entry candle with appropriate SL ,Candles are marked as 1-10 for reference.Consider line to be a good support and entry is for Buy.

Very good question Amandeep.
To find proper entry in above chart first we need to analyze/understand market sentiment through candlesticks.
After a sale off candle 1 showing profit-booking which pushing price up. That is why candle 1 and next to it gave
little pullback and fresh Bears entered in next selling round. Then again at Candle 2 same thing happened but at
Candle 3 Bears not able to close below 'Candle A' (prior to Candle 2)
Now here sentiments are changing, either Bears are not confident enough to push price down or Bulls are entering
in that price zone which created Candle 3 (Hammer) Candle 4 engulfs previous 3 candles which confirming Bulls have entered
but still not able to push price above candle A. Now BOF setup is in the making but still need conformation.
Next 2 candles pushed price higher than candle A but now previous support become resistance and Bears are not willing
to close above so they are pushing price down and there formed Doji as tough fight between Bulls and Bears.
Still no conformation, will wait for next information.
In next candle Bears pushed price down but failed to close below candle 4. Now need to be alert for next candle.
And here comes the Bulls taking price above previous red candle and able to close above candle A.
This confirms TST and BOF setup and Entry Signal.

I take very less trades on Break outs because risk is more of failure.
My entry would be as near as possible at support i.e. near 18 with S/L few ticks below candle 3 Low.
So that if I win I win more and if I loose I loose less. I have marked my possible targets also.

I know it's become very lengthy but all you know problem,
I am very very, super duper, extra ordinary (POOR) in English writing.........

 

[skjanghu]

Where to Place SL and Exit ??

Welcome to TJ

 

[humble]

Dow up 52 points SGX Nifty up 21 at 7932

Smart_trade

Sirji, Lord Ganapathi wants 8000 NF / 16000 BNF :thumb:

 

[ananths]

Nifty options Max pain is at 7850

 

[Smart_trade]

Sirji, Lord Ganapathi wants 8000 NF / 16000 BNF :thumb:

Looks slightly difficult in August expiry...but possible in September.

Smart_trade

 

[suri112000]

Nifty options Max pain is at 7850

Can someone explain me what is Max pain in layman words? I often come across this phrase in this thread but could not make out what it could be.

 

[ananths]

Nifty options Max pain is at 7850

Can someone explain me what is Max pain in layman words? I often come across this phrase in this thread but could not make out what it could be.

The maximum pain theory assumes that most of the option contracts (Calls or Puts) will expire worthless on the option expiry date. What happens is that during the last few days of trading for the month, the price of the underlying stock will move toward the pain point
source :- http://optionalpha.com/understanding-the-max-pain-theory-near-options-expiration-13914.html

Also, you can check in healthraj's thread. :thumb: He is the master.

You can check for this max pain in options oracle.

 

[manishchan]

Can someone explain me what is Max pain in layman words? I often come across this phrase in this thread but could not make out what it could be.

Max Pain is based on the fact that most of the Options Buyers loose money and options sellers are profitable. You must be knowing abt Max Call OI and Max Put OI in Options Chain.. these are the points where Options sellers have most of their positions (sell) open therefore they will try to steer price away from Max Call OI and Max Put OI which will make Options buyers loose (feel the pain) and therefore sellers reap profit. Therefore market always will expire around dt Max Pain area. But remember this Max Pain area changes drastically based on how Open Interests change.

Now what is the Max Pain ? Max Pain is the point (based on certain calculation) between those Max Call OI and Max Put OI where most of the options will expire worthless so dt Options sellers will make money. that is why.. nifty future will be likely to expire around this Max Pain area.

Current Max Pain @ 7850..