Trade Plan 10-2-2011

VA is overlapping down. Nifty pulled back into value forming a tail in L period. This tail is an important reference point today.

Today's profile split at letter K. The P shape and failure to take out the C period high implies short covering. We are interested in the down push came in K period. In M period it pulled back. Will it came back into the balance area and get acceptance. Or further development of the last section of the profile to a complete distribution. Or break the low and find acceptance.

Two Brackets (Balance area) are marked in the candle chart. These brackets are important reference points on the higher side.
1. Rejection from VA Low, may develop as open test drive/open rejection reverse.
2. Rejection from VA high.
3. Rejection from second VA high.
4. Break down through single print. May develop as open drive.
5. Rejection from single print/Low.

Trade Plan 8-2-2011

Another bracketing phase is going on. Yesterday's profile was in good balance.  Value is accepted near the bracket low. Will the bracket hold or nifty break down from the bracket. Well, I don't know. Assuming the bracket holds, there exists good asymmetric buying opportunity around yesterday's VA. Also there is another asymmetric opportunity at VH for a short.

The region marked by blue lines is a good location for responsive buying and the yellow region is for responsive selling. The red lines around a green line represents a balance area where green line is the POC.

Trade Plan 4-2-2011

Well, the vertical move came, at open the failure to auction below yesterday's low brought in buyers. Swift move through VA shows the commitment of buyers. Single prints in B and C periods are not revisited. However we are not in an up trend. It may be another bigger bracket that is forming.

Looking for buy opportunities today. But beware of failure to auction higher may bring Nifty back into the bracket. The green line surrounded by two red lines represent a value zone. and the blue zone is a resistance zone.

Trade Plan 03-02-2010

VA formed higher and overlapping. Bracketing action is evident now. Previous days minus development area is fully developed.

See the last 3 profiles merged. Time for next imbalance (vertical move)

Trade Plan 02-02-2011

The VA overlapped in the last session. It may be the stopping phase and beginning of bracketing. Responsive selling above previous VA  and initiative range extension to the lower side indicates presence of other time frame sellers.

In the next picture, last two profiles are merged. See the balance forming.  If nifty trades back into Balance area today, expect a bracketing phase. However acceptance below VA may lead to another vertical down move.

 Some trade Plans