Trade Plan 28-1-2011

Index broke below the bracket, but todays open will confirm price acceptance below bracket. If accepted, expect the next vertical development.

Rejection from the area marked by the red arrow is todays best opportunity, if it materializes. The levels need to be adjusted as today is the roll-over day.

What Happened Today

Well, the rejection happened in the first bar, see the red down arrow, it completed the double distribution from previous day and went down.

Nifty Trade Plan 27-1-2011

Nifty attempted to trade above the multi day bracket, but failed and came back into the bracket. Jan 25 th's double distribution may get completed today.  Seems time has reached for the next phase.

The plan was to trade the open assuming a bracketing market. Which scenario will unfold at open ? You can get clues from the open. All these scenarios require immediate rejection from reference point. Open auction to complete the double distribution is marked with red curve. In this case fade the extremes where the distribution is expected to develop. Today's volatility linked SL is 11 points. The green line is POC and the red lines around the green line is VA.

Trade Plan - 25 - 01 -2011

Well, I am back after about a month's break. Hopes to continue positing regularly now.

So we have a nice down move and the vertical move has stopped and turned into bracketing phase. Now we expect the next step in bell curve formation, ie shifting of POC towards the center. Is it gonna happen or market will skip this step?. Well I don't know, but these are the scenarios to unfold now. And we trade them as each phase unfolds.

Value area is rising, but we may be in the bracketing phase. Jan 24 th profile shows strong initiative activity, but there is a small selling tail also. Profile is somewhat balanced.

Trade plan for different scenarios are marked in chart. Stop loss for todays entries is 8 points from reference points.