August 21st 2012 Nifty Future Price Action

Nifty Future on Friday had fallen below the 5380 support turned resistance level after a failed breakout of the 5425 level. The corresponding level in Nifty Spot is 5352 and 5400. Nifty Future had on Friday had closed at the 5380 level. Global and Domestic cues were positive and Nifty Future opened at the Friday close and the test below 5380 was violently rejected and Nifty Future resumed the second attempt at up move. I have given below the 5-min Nifty Future Chart with my observations.

Decision Point Nifty Future Trading Setup

This discretionary trading setup is used by Smart Trader. I have formally decided to give it a name and try to define it in one blog article. The below information would be available in Smart Trader’s market updates and comments section. I have added my thoughts and perspective to it where ever required. I feel the frequently asked questions format would explain this concept nicely.

August 17th 2012 Nifty Future Price Action

Nifty Future opened at 5384 just above the previous day close of 5380. In the last hour of trading in the previous day Nifty Future had a break out failure of the 5380 level . The up move in the morning session today was the continuation of the Break out failure of yesterday.  Nifty Future had a notable Tight Trading Range pattern at the Days high for 2 hour duration. Given below is the Nifty Future 5-min chart with observations.

August 16th 2012 Nifty Future price action

Nifty Future opened inside the previous days last hour range of 5396 to 5415 at 5410 above the previous days close of 5406. Nifty Future immediately with high volume moves below the previous days close of 5406 till the previous days last hour range low of 5396. Given below is the Nifty Future 5 min price chart with notes on the volume based action.

August 14th 2012 Nifty Future Price Action

Today Nifty Future opened at yesterdays close and the price action was an extension of the yesterdays closing 1 hour price range. The volume based price action that played out on an events day was different compared to the previous days event based price action. Inflation data was expected to be announced between 11:00am to 11:30am.

August 13th 2012 Nifty Future Volume Play

Inspired by Smart Trader I am posting my understanding of the market structure. My trading decision is guided by Volume based price action. I have labeled four points in the 5 min chart that I feel where the volume and price action is important. The first trigger for trade entry is always the volume related price action. The first and second target along with stop loss would be based on the Decision points. The premise for the long trade in Nifty Future would be based on the four points.