OrderFlow charts and Notes 09/10/14

[08:54]   r m : Good Morning folks!
[08:54]   r m : http://vtrender.com/levels-and-plan-for-9th-oct/
[08:59]   Sharad : GM all
[09:01]   Porus : GM
[09:07]   Amit J : gm
[09:07]   Amit J : RM yesterday at 3.27 a big block happened in nifty
[09:10]   r m : ok, did not reflect on the chart here
[09:10]   r m : perhaps volume was less than the threshold here or may have been multiple transactions
[09:11]   Sumit : gm everyone
[09:12]   Amit J : 10L shares
[09:12]   Clay : gm all
[09:18]   r m : NF hypo 2 – above 7910 > 7936 > 7970 > 7983, view wrong below 7885 NF
[09:19]   r m : BNF Hypo 2 – above 15470 > 15597 and a move above that will bing 15750
[09:22]   Sumit : everything done
[09:22]   r m : 🙂
[09:22]   r m : fast and furious mode
[09:23]   r m : [13:26] Shai : so if auction above 7910 gets accepted above 7936 then only 8057 next week
[09:23]   r m : from Shai’s yesterday’s comments
[09:24]   Sumit : market up, delta down
[09:24]   Amit J : above 7983?
[09:25]   r m : that 8057 view is for next week (if auction stays above 7936)
[09:29]   Amit J : thanks
[09:29]   Amit J : 15100 spot was superb
[09:30]   r m : 7983 was the POC from balanced profile of 1st OCT – http://vtrender.com/wp-content/uploads/2014/10/NF_Compo15.png
[09:32]   r m : 7956-7970 were the single prints from 7th OCT, thosee being filled now
[09:36]   Sumit : so as market is expected up, we can buy close to 7956
[09:37]   Sumit : after filling single prints, market should go up. right?
[09:37]   r m : yes, vwap is at 7959
[09:38]   r m : 7962 here
[09:40]   r m : @Sumit, not necessary to go above after singe prints, guess delta might help in picking that direction
[09:41]   r m : 60 points range so far in NF
[09:41]   Sumit : yes. but as it is in uptrend, risk reward is good. isn’t it
[09:41]   r m : ATR 20 days is approx 90
[09:41]   r m : ye
[09:41]   r m : yes
[09:41]   Sharad : for last 2-3 days market goes up with negative delta and vice versa ?
[09:42]   Sumit : 7936 can be sl
[09:42]   r m : true!
[09:42]   Sharad : delta is negative so we can not buy here right RM ?
[09:43]   r m : @Sharad, delta is not of much help on trend days, so if today turns out to be a huge trend day then delta will not comply
[09:44]   Sharad : ok cool
[09:44]   r m : we must also keep in mind that IB is generally smallish on trend days, 60 points IB is quite large
[09:46]   r m : since stops are big, I am trying to play with 8100CE for Sha’s view of 8057 next week if 7936 stays
[09:46]   r m : stop is reasonable on that
[09:46]   Sharad : what should be stop for that
[09:48]   r m : I think day’s low should be the stop
[09:48]   Sharad : ok
[09:49]   Sumit : vwap not letting it fill single prints 🙂
[09:50]   r m : @Sumit, i forgot that today is Open drive, if vwap is protected than close should be near highs
[09:50]   Sumit : ok
[09:51]   r m : if vwap fails on the open drive day, then price tends to go back to day’s low, so on NF longs, trailing stops below vwap may protect profits (if any)
[09:52]   Sumit : ok thanks
[09:53]   Sumit : either way its good. market will move
[09:53]   r m : yep
[09:54]   Sharad : software pulling down market
[09:54]   r m : USDINR plunged at open – that may be the stone tied to software companies neck 😀
[09:55]   Sharad : yeah may be
[09:55]   r m : BNF testing vwap
[09:56]   r m : that pink green is hidden, we won’ know when it went pink in BNF
[09:56]   Sumit : i think if vwap fails in both, it will give better opportunity with green
[09:57]   r m : ok
[09:57]   Sumit : in 30 min. market has already done 80+ points, need to consolidate
[09:57]   r m : yes
[09:58]   Assortz : thanks RM 🙂
[09:58]   r m : welcome Assorz 🙂
[09:59]   r m : We have majority in the room from TN now 🙂
[09:59]   Assortz : 🙂
[10:02]   Sharad : am from Gujarat
[10:03]   r m : ok, land of Modi 🙂
[10:03]   Sharad : yyes proud of him
[10:03]   r m : yes, very
[10:03]   Manik : WE AL ARE
[10:06]   Sumit : nf should be pink by now. what say rm?
[10:06]   r m : yes, i guess so
[10:07]   r m : @Sumit, do you trade pink-green on NF or just use it along with other inputs?
[10:08]   Sumit : i trade it and use other inputs for profit booking
[10:09]   r m : ok, then it will be difficult for you today and tomorrow, charts are on auto so OF will come on view only when it is near price
[10:10]   Sumit : pink is starting to appear on screen in nf 🙂
[10:10]   r m : 🙂
[10:11]   r m : if and when price breaks up above IBH, the OF will be green and seen 🙂
[10:11]   Sumit : in such cases i can use larger OF or other lines. but even for that, no luck today
[10:11]   r m : yes
[10:12]   Sumit : consolidation also means more whipsaws in pink-green
[10:12]   r m : yes, consolidation is another name for taking money from day traders and pass it to positionals 🙂
[10:12]   Sumit : 🙂
[10:13]   r m : break above IBH 15650 may give a good risk/reward trade in BNF with target at 15750 hypo 2
[11:01]   Clay : levels above 15750,later on in week/next week,if Nifty were to go to 8057 next week
[11:04]   r m : @Clay, I am normally just reading out Shai’s levels here and that ended at 15750 🙂
[11:04]   r m : will check with him if he drops in today or tomorrow, he will be back next week
[11:05]   Clay : ok thanks
[11:12]   Manik : @ rm will we see day low once today?
[11:13]   r m : not too sure about that but if it stays below vwap then the open drive is negated
[11:14]   r m : then I won’t be too sure about longs
[11:14]   Narendra : any importance of yesterdays vah and val
[11:14]   r m : by the way vwap should be at 7963/15621
[11:15]   Manik : ok. thanks
[11:15]   Narendra : todays vah and val r very far
[11:16]   r m : @Narendra, if it goes back to the value area, good chances of it traveling thru
[11:19]   r m : (*** Private to Manik ) @Manik, is Kathir in the room today?
[11:23]   Manik : no
[11:23]   r m : Thanks Manik
[11:24]   Manik : welcome
[11:25]   r m : bnf turns pink
[11:26]   Manik : bnf needs to defend vwap
[11:26]   r m : yes, else back to square A 🙂
[11:27]   Manik : i have always been a fan the letter A:)
[11:27]   r m : lol
[11:28]   r m : specialist in “return to the mean”? 🙂
[11:29]   Manik : miles to go ”
[11:29]   r m : 🙂
[11:30]   r m : looks like that algo at 15661 was a seller (20/20 hindsight) 🙂
[11:43]   r m : bn gives up the ghost too
[11:44]   Manik : 🙂
[11:50]   Amit J : i am from Mumbai
[11:51]   r m : me from Dehradun
[11:58]   r m : (*** Private to Manik ) @Manik, could you pm me your email ID please, we have a fellow trader from TN in the room but he is hesitating to contact you here 🙂
[12:16]   r m : BNF kicks out the doubtful longs!
[12:16]   Manik : true
[12:20]   Amit J : rupee spot below 61
[12:27]   Manik : @rm bNF testing sellers at 15660?
[12:28]   r m : looks like that
[12:29]   r m : but BNF delta remained positive even at dval
[12:29]   Manik : s, nf delta too improved
[12:31]   r m : yes
[12:31]   r m : both got rid of free-riders 😀
[12:43]   Manik : @ sellers in nifty defending 7970
[12:43]   Manik : @rm sellers in nifty defending 7970?
[12:45]   r m : yes
[13:00]   Sumit : my charts not refreshing perhaps due to net issues.
[13:00]   Sumit : rm, please let me know when nf turns pink. thanks
[13:01]   r m : OK Sumit
[13:12]   Sumit : working now. thanks rm
[13:12]   r m : welcome 🙂
[13:12]   Sumit : couldn’t see coments also 🙂
[13:13]   r m : yeah, this omnovia is a bandwidth hungry chap
[13:13]   Sumit : why no Algo in nf 🙁
[13:14]   r m : bnf marching towards 750
[13:19]   r m : 15750 done
[13:19]   r m : BNF beyond Shai’s targets now 🙂
[13:21]   r m : next power level (PS2) is at 15928!!
[13:22]   r m : @Sumit, NF has run out of Pink dye 😀
[13:23]   Sumit : 🙂
[13:23]   Sumit : these algos are excellent trade points. should be backtested 🙂
[13:24]   r m : yeah!
[13:26]   Sumit : bnf on steroids
[13:27]   Sumit : doesn’t even care for vwap band
[13:27]   r m : It wants to make the maximum out of Shai’s absence, before he comes back and ties it in a range 🙂
[13:27]   Sumit : 🙂
[13:27]   r m : 8K
[13:27]   Sumit : pre-diwali rally
[13:31]   r m : last time BNF turned green was at 15645, 180 points straight!!
[13:31]   Sumit : yes
[14:25]   Amit J : banknifty again near Shai’s level of 820
[14:25]   Amit J : spot
[14:26]   r m : ok
[14:27]   Amit J : 15800 spot sorry. long term level
[14:29]   r m : Thanks
[14:32]   r m : 15794 is the high so far for spot
[14:37]   r m : final thrust?
[15:06]   r m : RBI day high taken out in BNF – http://screencast.com/t/JEDxf9S0
[15:12]   r m : NF at 8K delta at minimum 🙂
[15:13]   Sharad : why this delta is at such a low level….i mean if buying there it should be in positive
[15:15]   r m : delta is calculated from market orders executed at ask/bid
[15:15]   r m : limit orders not part of it
[15:16]   r m : basically it tells about aggressive trades
[15:16]   Amit J : i thought these are passive buy order in delta reported on the right
[15:16]   Amit J : sell x buy
[15:17]   r m : pink green is calculated from both passive and market orders
[15:18]   r m : ok, I was under the impression that FP too was from market orders, shall check with Shai next week
[15:19]   Amit J : becasue how can mkt order be pending orders
[15:19]   Amit J : i am talking about -650 number
[15:20]   r m : the numbers shown there are not pending orders but executed trades at bid/ask
[15:20]   r m : pending orders go up and down but executed trades only go one way – up
[15:22]   r m : so while delta is moving up or down, that is due to change in number of orders executed at ask/bid
[15:24]   Anay : short positions built up
[15:24]   r m : yes in nifty
[15:25]   Porus : any clue for tomorrow?
[15:25]   r m : fii reduced their exposure in both index longs and shorts yesterday – perhaps due to uncertainty from FOMC minutes
[15:27]   r m : @Porus, bias should be long but NF delta does not favor carrying of longs
[15:30]   Manik : bye guys !!!
[15:30]   Sumit : googe bye everyone
[15:30]   Manik : sorry
[15:30]   Manik : bye everyone
[15:30]   Sumit : *good
[15:31]   r m : Thanks and bye folks, have a great evening 🙂
[15:31]   Porus : bye
[15:42]   Amit J : thanks and bye, sorry BUY