Escape's Options Trading Diary - Phase 2

[prakash2010]

On a sideways market,your head will be hit on both sides.

Try to identify if any momentum is there.

options need absolute momentum.

 

[escape]

On a sideways market,your head will be hit on both sides.

Try to identify if any momentum is there.

options need absolute momentum.

Yeah, that's what happening. When CE 5500 showing long green candle bought it .. but seems it is at resistance. Still holding on, around 8 points down.

 

[escape]

Bought Nifty 12SEP2012 CE 5500 @ 143.00, SL 133.00, CMP 143.15

Exit @ 134, loss of 9 points, less brokerages.

 

[augubhai]

Escape,

Just curious. How do you identify momentum?

 

[escape]

Escape,

Just curious. How do you identify momentum?

Two ways:
1. Long candle compare of rest
2. Breakout (above High of last swing or day) possible with good size green candle.

 

[escape]

Bought Nifty 12SEP2012 CE 5500 @ 130.00, SL 120.00, CMP 130.40 (R) At last support level

 

[escape]

Bought Nifty 12SEP2012 CE 5500 @ 130.00, SL 120.00, CMP 130.40 (R) At last support level

SL changed to 127, CMP 131.00

 

[augubhai]

Do you also take volume into account for momentum?

 

[escape]

Do you also take volume into account for momentum?

Ideally I should consider volume. But personally, most of time I ignore it.
As on momentum, most of time volume automatically goes high.
At support level, volume may behave differently.

 

[escape]

SL changed to 127, CMP 131.00

EXIT @ 138, profit of 8 points, less brokerages.