New Blog

Hey All,

http://capitalbee8.blogspot.in

I have decided to make new blog and managed to import whole blog in new one.
So Please check new one..probably Better also. :)

Hello All,

Planning to start Blogging again.
What should i write about my trades or different setups  or progress on any research im doing ? Any suggestions..

Another Failed Auction Revisit

Nifty Future once again visited Failed Auction price, now price action near 5850 decides next course of action.
Will write in detail about research i did on Failed auction.

Failed Auction -Revisit

Few days back posted about failed auction ,what does it mean and possibility of revisit of failed auction prices in next 5 trading days.
You can read that post here

http://mercurycapital.blogspot.com/2011/02/failed-auction.html

I have marked failed auction on chart on 17th Mar,now lets see if market revisits 5528 within next two days, if there is no revisit one can assume that there is more downside.

Here is weekly profile,

As visible market is still below Value area, if it can cross 5450, then its quiet possible to revisit failed auction n may b more upside.
so looking at charts, Buying 5500 CEs with 2-3 days time frame makes sense to me.

Trade wisely!! Happy Trading :)

Normal Variation Day

Updating blog after many days, as Nifty was rotating alot n i had nothing much to write about it.
Anyways today NF Broke out of Balance it was forming for last 3-4days.
Today im going to write about points i observe throughout day, as im
discretionary Trader..i have to be in sync of market n understand whats it doing n how efficiently its doing that job??Mentioned points on chart, changing my charting Platform to Ninja Trader( lately Market Delta Creating lot of problems in data handling,still managed to add MD TPO chart )

Most imp. point for market is OPEN, as open tells us which side overnight Inventory was and then if market sees follow up on that side of Inventory.

• Friday Market tried to break down n in second half manged to recover..n today market open was on that side i.e.UP
• Open Inside YVA= suggesting nothing much has changed overnight
• Open Type= Open drive which has strongest conviction of all the open types.
• Then next step market crosses YVAH..imp ref point n saw follow up of this buying also, in this process mkt spent Nearly 2 hours rotation in same region but IB high was holding, leaving no case for shorts.
• so far not any point suggested shorting markets, then in "K" period mkt finally moved away from balance it was forming for 2 hours on upside, breaking 2 days high, managed to close @ Highs.
• creating Normal Variation day, where target is generally IB X 2 or 1.5, which was hit.
• For tomorrow  we may see follow up of today's action ..ref point on upside is 5575-5620. 5540-5530 should hold for any up move.

 Today i was in total sync of market, n due to all these pointers was long from the start of day (around 5479) , Thanks to Market Profile :) .

All Comments welcome.

Double Inside Day

Range is getting narrower, leaving us with double inside day or as some people call it Dynamite Pattern.Move on either side will be rewarding, till then its rotating markets, where one should be looking at Responsive Trades.
Tomorrow is Expiry day and on 28 its Budget, so because of this event there is nervousness in markets.
Creating strategies for Budget.. whether Budget will be non event for markets or will be major event ??
Have a look @ March Options Table

No major clues from that too , indicating same range NF trading in now.
However Open interest in Puts is more than calls , 5400 PE has maximum OI in all strikes, which is nearly 21lks higher than maximum OI from Calls i.e. 5500 CE. So is it pointing on Rally after Budget ??

Failed Auction ?

Did NF saw Failed Auction on downside on Friday ??
Whats Failed Auction= Its Single Prints at one end of Profile after Initial Balance but then Range Extension at the opposite end.
As its visible on chart, NF had Failed Auction in "F" Period and Range Extension on opposite side in "I" Period.
If market holds failed Auction Price, NF can head for some good UP move or at least  some rotation.
(I understood this Failed Auction Term from Barros Blog.. )
Here i would like to share what he mentioned about Failed Auction :-
"Market Profile Theory suggests we ought to see a Failed Auction’s price within 5-trading days. The fact that we did not, will suggest that the market has more Upside." ( which is honestly very New to me )

Now im curious to see Action Near Previous Failed Auction on Upside on 7th Feb "K" Period i.e.5445 ( 14th Feb will be 5th day ) :)

All Comments are welcome .