Friends talk on My daytrading
- Thread starter Raghavacc
- Start date
Hi
Just one book I seriously can recommend about price action is "Al Brooks" book : Reading Price charts bar by bar ( TA of price action for advanced traders ). The book gives real detailed ideas and many chart examples on pure bar chart trading. Some may are interested in it, as this knowledge can be very well combined with Raghavac's thread.
Tc
DanPickUp
Just one book I seriously can recommend about price action is "Al Brooks" book : Reading Price charts bar by bar ( TA of price action for advanced traders ). The book gives real detailed ideas and many chart examples on pure bar chart trading. Some may are interested in it, as this knowledge can be very well combined with Raghavac's thread.
Tc
DanPickUp
Raghavacc, they are both relative. As an example, if you draw your Fibos between the 0 and 38.2% lines, you will notice within that area there are perfect Fibo bounces. What may look like a small glitch on the hourly chart could be a long trend on the minute chart, therefore, by drawing the Fibos on the minute chart you have the perfect Fibo retracements and corrections.
One more point, and this is only to add a perspective to what you are talking about. The reason that for the most part a market will continue in the same direction after going sideways is because of a trading channel it is in. If it is a downtrend, the longer is goes sideways, the closer to the top of the channel it gets, and so it would then have its next explosive break.
I was going to post an example of that, but did not want to upset the rhythm of your thread.
One more point, and this is only to add a perspective to what you are talking about. The reason that for the most part a market will continue in the same direction after going sideways is because of a trading channel it is in. If it is a downtrend, the longer is goes sideways, the closer to the top of the channel it gets, and so it would then have its next explosive break.
I was going to post an example of that, but did not want to upset the rhythm of your thread.
Dear 4xpip ,
Welcome to this thread.I have seen some of your posts on ST Bro;s thread and they are high rated ideas.
Coming back to Fib.Like you, I am also a Forex trader.However I have passion towards Nifty as well and few other liquid stocks of Indian Markets.
I make use of Fibs in Forex liberally and they generate tonnes of pips with almost no risk. I am posting an example below. '
However I am astonished to see that traders here in Indian Market hardly talk about it, let alone using the same. Hence I started using it on Nifty and it worked wonders even on 5 Min TF. However here its very difficult to convince people and make understand what it really is. The example is my mother thread where I started sharing thoughts on Fibs and Pivots. The response was almost NIL. I left it once I knew its not worth the effort and time.Unfortunately Indian Market still in this century,On this day of 24th July 2011 iremains dominated by Tips,rumours,Inside Information and some tricks by Business channels,brokers and market makers....
Below is our point of discussion.
DAILY CHART OF EUR/USD
After a brief downtrend we have a hammer on 16th June .Once the day ends I draw a retracement level on that hammer .Then I go down in to 15 Min charts and here how it looks.
----------------------------------------------------------------
15Min chart for 16th and 17th June
Same 2 days in 15 Min chart.The blue lines represent top and bottom of the hammer respectevely.I draw the fib retracement level taking this entire bar. Then I wait for the 17th June price action.
Price starts retracing it retraces till 61.8%.Then what does it to?.It makes a double bottom.Then it breaks the neck of double bottom at around 4175.Thats where my entry is. For S/L I have lot of options. It can be either the below of double bottom or just below 61.8 or 50%.Look at the risk and look at the reward.The maximum risk If I keep My S/L below double bottom is still 50 Pips.A daily swing trade with 50 pips risk.!!
IT essentially means I AM TAKING A DAILY SWING TRADE AT 15 MIN RISK LEVELS. .I have seen traders making same trade with entry on 5 Min TF as well.!!
I hope you also meant same. However lot of traders fail to understand this simple concept.
Using higher TF retracement level for entry on lower TF and thereby making low risk high rewards trades.
Welcome to this thread.I have seen some of your posts on ST Bro;s thread and they are high rated ideas.
Coming back to Fib.Like you, I am also a Forex trader.However I have passion towards Nifty as well and few other liquid stocks of Indian Markets.
I make use of Fibs in Forex liberally and they generate tonnes of pips with almost no risk. I am posting an example below. '
However I am astonished to see that traders here in Indian Market hardly talk about it, let alone using the same. Hence I started using it on Nifty and it worked wonders even on 5 Min TF. However here its very difficult to convince people and make understand what it really is. The example is my mother thread where I started sharing thoughts on Fibs and Pivots. The response was almost NIL. I left it once I knew its not worth the effort and time.Unfortunately Indian Market still in this century,On this day of 24th July 2011 iremains dominated by Tips,rumours,Inside Information and some tricks by Business channels,brokers and market makers....
Below is our point of discussion.
DAILY CHART OF EUR/USD
After a brief downtrend we have a hammer on 16th June .Once the day ends I draw a retracement level on that hammer .Then I go down in to 15 Min charts and here how it looks.
----------------------------------------------------------------
15Min chart for 16th and 17th June
Same 2 days in 15 Min chart.The blue lines represent top and bottom of the hammer respectevely.I draw the fib retracement level taking this entire bar. Then I wait for the 17th June price action.
Price starts retracing it retraces till 61.8%.Then what does it to?.It makes a double bottom.Then it breaks the neck of double bottom at around 4175.Thats where my entry is. For S/L I have lot of options. It can be either the below of double bottom or just below 61.8 or 50%.Look at the risk and look at the reward.The maximum risk If I keep My S/L below double bottom is still 50 Pips.A daily swing trade with 50 pips risk.!!
IT essentially means I AM TAKING A DAILY SWING TRADE AT 15 MIN RISK LEVELS. .I have seen traders making same trade with entry on 5 Min TF as well.!!
I hope you also meant same. However lot of traders fail to understand this simple concept.
Using higher TF retracement level for entry on lower TF and thereby making low risk high rewards trades.
After reading your thread and witnessing a lot of the excitement, you are proving your methodology in your personal usage of Fibs. There are many ways to use indicators drawing tools, ala Fibs, and price action.
IMO, people don't use Fibs a lot, because there are so many other systems and ways to view the markets. I don't use them, but that is because I developed a formula that figures S&R points in advance of the price action. Having said that, there are other pivot systems that can be used the same way.
I like your way of using the Fibs. I also believe that considering you seem to have developed a very good system with Fibs, then you are also aware that in lieu of using price action like you do, then the next day's price movement becomes measurable.
Keep up the good work!
IMO, people don't use Fibs a lot, because there are so many other systems and ways to view the markets. I don't use them, but that is because I developed a formula that figures S&R points in advance of the price action. Having said that, there are other pivot systems that can be used the same way.
I like your way of using the Fibs. I also believe that considering you seem to have developed a very good system with Fibs, then you are also aware that in lieu of using price action like you do, then the next day's price movement becomes measurable.
Keep up the good work!
Hello Raghav,
Attaching here the nifty chart with entries and exit. Could you please let me know If i have any other calls in it?
Should I have applied any fib retracement levels?
Day low broken at 5567 and caught our order around 5564. Then add when consolidation breaks. Around 5530 trailing SL triggered
Thanks
Regards,
Bala
Attaching here the nifty chart with entries and exit. Could you please let me know If i have any other calls in it?
Should I have applied any fib retracement levels?
Day low broken at 5567 and caught our order around 5564. Then add when consolidation breaks. Around 5530 trailing SL triggered
Thanks
Regards,
Bala
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