Markets seek value and then move away from value. This quest for value creates asymmetric trading opportunities. This is an attempt to identify asymmetric trade opportunities. Market profile terminology is used without explanations.







Tuesday, December 21, 2010

Trade Plan for 12 - 21 - 2010

Nifty - VA moved Higher and market developed in thursdays vertical movement area. Mondays profile seems not complete and requires more development. However it has developed a small VA in the lower portion. Some more rotation is expected today to complete the profile. The lower distribution VAH 5910.50 is a good buy point if nifty comes to that level before fully developing the profile.Note the buying tail at Thursdays POC. And the SL for today is 11 points.



Watch this merged profile. Market is ripe for next vertical move





Horizontal development of about 2 hours or more in between the upper distribution and middle distribution negates these trade plans.

RELIANCE

reliance broke out from the balance area created by overlapping VA of 14, 15 and 16. And it is retesting the POC of that merged profile.


Do the breakout fail ? Ahaaa.. I dont Know, but the trade plan is below


So many possibilities, how to trade them. The open and market development provide hints to which way market is developing. What is shown is high probability reversal levels. And the SL for today is 3 points.

TATA STEEL

Rising VA and well developed VA. Also a P. A down move may emerge from VAH 670.22. But overall bias is for upward move and best trade is the buy marked with an up arrow at 663.


Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)