iCharts Discussions

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

Hello. Thanks for your patest post on selection of diagonal.

Today, NS closed just above the indicator that I use and turned bullish. However, considering 6363 NS as major res, I have decided to continue my bearish daigonal ( 63P March + 61P Feb). Loss is ~ 6%.

To protect against gap up / wild upswing, have added 63 Jan calls. I know that it is not part of diagonal set-up, but thought of sharing with you.

Happy Trading !

SwingTrader · Posted: Wed Jan 22, 2014 6:28 pm Post subject:

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

Sincere thanks. Excellent observations / suggestions. Will keep sharing as I manage few more such trades on this journey.

Idea of monitoring daily P/L on paper for several combination is great. Let me implement the same and share !

I hope to have fewer signals with the indicator that I have chosen. (Will also think through any other indicator which is can be effectively used only on daily TF as ant other TF is difficult for me to track)

Happy Trading !

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

Update on my bearish diagonal position:

I continued to hold the same (as I mentioned earlier, due to nearby resistance) and got benefitted ! ( My idea of hedge through 63C was bad and I got hurt, luckily not too much !).

I have moved my position from March 63P + Feb 61P to March 62P + Feb 60P. Current SL for this is NS going above 6174, after ~ 2.30 pm.

Thanks.

SwingTrader · Posted: Wed Jan 29, 2014 2:02 pm Post subject:

UMESH0909 · White Belt Joined: 02 Jul 2013 Posts: 139

Dear ST sir,

This( what Gemini did) kind of diagonal shift is closing one diagonal and initiating another diagonal, am I correct?

Should one do this kind of shift as it is similar diagonal to the original diagonal(means put was earlier also and in the changed one too)

Thanks,

UMESH0909 · White Belt Joined: 02 Jul 2013 Posts: 139

Dear ST sir,

As I am new to technical as well as trading. I might be wrong thats why the clarification needed.

I was just checking the the 60 min time frame and 13EMA and 89 EMA crossover. IF just after the crossover if I initiate the diagonal and after the another crossover or expiry (3 days before) close the diagonal. I find that if within 2-3 days there was not huge movement or a crossover. then there was 6-10% profit.

Am I missing something? please clarify.

Thanks

SwingTrader · Posted: Wed Jan 29, 2014 5:00 pm Post subject:

SwingTrader · Posted: Wed Jan 29, 2014 5:06 pm Post subject:

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

Thanks for your inputs. (Also Covered in response to Umesh's query).

Q1 : Let us say, I was holding 63+61. To protect profit, do you advise to cover 61 and short 62 ? In that case, 62 will be ITM, limiting future profit ! (May be I have not understood well).

Q2: Per my understanding, when you say OTM, ATM, ITM, you refer only to the long strike price, right ? or you indent to have both strike proce ITM ?

Please respond at your convenience. This my my learning phase !

Happy Trading !

SwingTrader · Posted: Wed Jan 29, 2014 6:37 pm Post subject:

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

Now I understand your suggestion of "covering the short and shorting a nearer option" !

Today, gap down opening gave me an opportunity to carry out that adjustment. I covered by Feb 60P short and initiated fresh short of Feb 61P (and pocked profit) , while maintaining March 62P as long. I expect market to be green for a few days ( price is near support, near BB(20) low and also made a nice PIN bar today). I expect to gain on Feb short and at the same time, maintain bearish outlook till I get buy signal ( current SL 6139).

Happy Trading !

drsuhask · White Belt Joined: 09 Dec 2009 Posts: 9

Dear ST Sir,
This is for my learning. I read all posts again from beginning of this thread. According to your recent updates in TA for this diagonal trade, there should be bullish or bearish cross-over of 13/233 EMA first followed by closing of nifty above or below the major pivot. Please let me know whether the bearish trade has initiated on 28/01/2014 and whether we have got fresh entry today.
Also I studied your excel-sheet. In it , I found that if the spread is costing us less than 100 rupee or more than 200 rupee , we had loss in majority of incidences. But if the spread is costing us more than & around 100 rupee, we had maximum profit. Please let me know the profit or loss is related to initial cost of the spread.
Dr.Suhas Kothavale.

SwingTrader · Posted: Tue Feb 04, 2014 9:49 am Post subject: Re: New bearish trade.

shekharinvest · Yellow Belt Joined: 21 Dec 2007 Posts: 549

The diagonals do have an edge over verticals but what I have observed, since the beginning of the thread by ST, in diagonals liquidity is a huge problem even in NIFTY and also spreads (ask/bid) are huge when there are sufficient orders which eats away some of the profits say 5 to 10 rs on each leg.

Posted below is the scrshot of 6300 & 6200 PE for march series on Friday Feb 07, 2014 at 9:35 AM NS 6070. Those who are in bearish position since Jan 29 they will find that there are virtually not takers for the given strike if one wishes to square off the position. Note the last traded price on 6300 PE is 290 and there is only one order at the given moment at 242. The situation would have been worse on tuesday when NIFTY was about 5950.

I agree that as per setup there is no reason to close the position but some would like to book partially.

ST your comments and experience would be highly appreciated.

SHEKHAR