LoneWolf's Intraday and Swing Trade Diary with Volume Price Analysis
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BANKNIFTY Intraday Analysis
BANKNIFTY went above the day before session's high in closing hour and started an uptrend. All the three pivot high after breakout (A, B, C) are suggesting weakness to bullish sentiment as price continued to climb higher. From price action study the momentum is also seen to be decreasing. From higher TF chart also its evident that smart money is not participating in the rise, rather they are selling and absorbing the demands. So probably a reversal is on the card.
BANKNIFTY went above the day before session's high in closing hour and started an uptrend. All the three pivot high after breakout (A, B, C) are suggesting weakness to bullish sentiment as price continued to climb higher. From price action study the momentum is also seen to be decreasing. From higher TF chart also its evident that smart money is not participating in the rise, rather they are selling and absorbing the demands. So probably a reversal is on the card.
A = As indicated from previous day's price action and volume analysis, the uptrend was lacking momentum, and with respect to that today price opened with a gap down. But bulls strongly defended the open. Opening bar was a strong bullish bar closing at its top on above average volume. And effort to rise.
B = The next two bars from A started showing price-volume anomaly, and there is a hanging man near B on above average volume. Demand dries up, and a decline started
C = Price kept declining on below average volume (Lack of selling interest) and at C, a bullish hammer formed on strong volume near previous demand zone. A failure to break below opening support established the trading range for the day.
C to D = Price rallied on below average volume. No fresh buying from smart money, and slowly price became closed to PDH (supply zone). An early weakness was seen at D.
But the effort did not produce desired result, a violation of 3rd law, and after some hours of consolidation price went up again at E to test the supply.
I attempted a SHORT here by mistake. I jumped ahead at the first sight of weakness rather than waiting for its validation. This trade did not reverse quickly, and went through a hour long consolidation. By that time I had realized my mistake, But I held on to the trade out of greed with a tightened SL. (Thinking since price was not showing any bullish strength, lets hold it, as it might fall next).
SHORT at 25633, Initial SL = 25666, Exit at = 25652, Loss = 19 Points
In backtesting also I found myself committing the same mistake twice in a similar situation. That is jumping ahead to SHORT while price was approaching the supply zone. After correcting myself twice there I did the same mistake in live today.. Need a better control on self. Pretty upset with myself for the same.
E = Two topping volume was seen prior to E, Then an effort to rise and failed. This is also followed by a test of demand bar. Aggressive SHORT can be attempted here. I did not take SHORT here since the subsequent bearish bar lacked strength from volume. The decline was on below average volume indicating lack of selling interest. Probably all the demands are not yet absorbed.
F = Another hammer on strong volume, following a weak raly heading in to the supply zone. This is followed by a bearish inside bar and at average volume. Rejection of day high. Entered SHORT below F's LOW, but here again bearish sentiment started getting weak and I scratched the trade in next bullish WRB.
SHORT at 25678, Initial SL = 25715, Scratch at 25688. Loss of 10 Points
A narrowing range followed near previous day high and supply zone.
G = Price breaks below the consolidation, An effort to fall, but the next bar was a small bullish bar closing at its top on above average volume, Price volume anomaly was seen, Eventually demand came up near H. These demands need to be absorbed before a mark down starts.
H to I = A correction rally, If the rally lack strength, then this will be my SHORT trading zone. Before I, there is an effort to rise, followed by another bullish bar closing at its top on above average volume. Rally is showing strength, Then suddenly a bearish bar closing at its low on above average volume followed the previous bullish bar. This indicates dominating supply on previous bar. This is then followed by a test of demand, which was successful. SHORT trade got triggered.
I avoided the SHORT as it was quite close to the closing hour. But that was a mistake which I regret now. I used to stop taking trades after 3PM while trading equity. That practice made me skip this trade. But here in future I need to trade till 3:30 PM.
Lone Wolf !!!
Trading system can be bifurcated into Good system and effective system, good system is more of theoretical and effective system is practical !!!...add practical part to your trading style !!!
you may find many setups to trade in books ,but many successful traders only trade 1 or 2 !!! find that practical part in the method you trade ,rather then attempting every thing at first go !!!
Trading system can be bifurcated into Good system and effective system, good system is more of theoretical and effective system is practical !!!...add practical part to your trading style !!!
you may find many setups to trade in books ,but many successful traders only trade 1 or 2 !!! find that practical part in the method you trade ,rather then attempting every thing at first go !!!
Yes it makes good sense, Will try to incorporate this in my trading.. Thanks 
BANKNFITY Intraday analysis
BANKNIFTY went above the day before session's high and bulls attempted thrice to mark price higher but each time they met with strong supply pressure. Eventually selling force increased substantially and intraday trade direction changed to down. Now we have a downtrend on 3M chart. This is followed by a weak correction and last bit of demand was absorbed. Previous day's low was a demand zone and bulls might try to defend it further. For now intraday trade direction is SHORT and any bounce need to be watched for dominance of bears over bulls.
BANKNFITY Intraday analysis
BANKNIFTY went above the day before session's high and bulls attempted thrice to mark price higher but each time they met with strong supply pressure. Eventually selling force increased substantially and intraday trade direction changed to down. Now we have a downtrend on 3M chart. This is followed by a weak correction and last bit of demand was absorbed. Previous day's low was a demand zone and bulls might try to defend it further. For now intraday trade direction is SHORT and any bounce need to be watched for dominance of bears over bulls.
@LoneWolf the analysis you are doing of your charts as per vsa/wyckoff how do you know its the correct analysis?
there is a strong possibility that you may be assuming that you are doing correcy vsa analysis but in reality it may not be like that.
the approach of vsa is quite different than other methodology
there is a strong possibility that you may be assuming that you are doing correcy vsa analysis but in reality it may not be like that.
the approach of vsa is quite different than other methodology
Well, I cant claim that I have learned complete VSA study and what I am doing is correct as per VSA analysis. It has been only 10 days since I learned something new i.e. validating price action by using volume analysis. The book was VPA by Anna coulling. And what I am applying on my chart/trading is the practical application of methodology and example described in that book. Also I read just one page on R.Wyckoff's principle from stockchart website, where it was very nicely described about his three fundamental laws.
i dont want to discourage you. to me you seems to be the person who is putting lots of efforts, energy and time in learning the art of chart reading ie vsa.
no doubt vsa is based on wyckoff. but tom williams the inventor of vsa has taken only one principal of wyckoff and built vsa on it i.e law of supply and demand. the other two laws are taken in general sense in vsa.
the foundation of wyckoff is based on these 3 laws. but wyckoff course is vast. i had also done the same mistake of mixing wyckoff and vsa when i was learning vsa years back.
if you want to be wyckoff method expert then take the wyckoff course of stock market institute founded by wyckoff himself. it will take anywhere from 8-12 months to complete the course and make it hands on in trading intraday.
if you want to trade using vsa only and be a vsa trader thn i suggest you to start with tom williams book "the undeclared secrets of stock market",original copy. and then focus on gavin holmes books. but if you internalize tom Williams book there is nothing else to learn in vsa.
as per me (i may be wrong) you are making basic mistakes in chart reading using vsa. I cannot tell you what mistakes you are making as i am not into teaching and i dont want to share my vsa stuff (hope you dont take it otherwise).
the methodology of vsa is very tough to learn as compare to other methods of trading as per me. and initially we dont know how to learn it. people have tried for years learning and applying vsa in wrong way. i dont want to quote anybody's name but there are couple of id's in traderji also who have left it after trying it hard. but their learning was wrong and having lots of holes in understanding of vsa.
its seems that you are mixing vsa with some other system of yours, which again is another dangerous thing as per my exp as i have tried so many different combos with vsa and none worked for me (it may work for you).
it is tough to master vsa but once you have mastered it even if you are not using it your chart reading skills will be at new level.
kindly take the above in right spirit. Normally I dont get into such things but seeing you putting efforts in vsa i thought of writing here.
regds
no doubt vsa is based on wyckoff. but tom williams the inventor of vsa has taken only one principal of wyckoff and built vsa on it i.e law of supply and demand. the other two laws are taken in general sense in vsa.
the foundation of wyckoff is based on these 3 laws. but wyckoff course is vast. i had also done the same mistake of mixing wyckoff and vsa when i was learning vsa years back.
if you want to be wyckoff method expert then take the wyckoff course of stock market institute founded by wyckoff himself. it will take anywhere from 8-12 months to complete the course and make it hands on in trading intraday.
if you want to trade using vsa only and be a vsa trader thn i suggest you to start with tom williams book "the undeclared secrets of stock market",original copy. and then focus on gavin holmes books. but if you internalize tom Williams book there is nothing else to learn in vsa.
as per me (i may be wrong) you are making basic mistakes in chart reading using vsa. I cannot tell you what mistakes you are making as i am not into teaching and i dont want to share my vsa stuff (hope you dont take it otherwise).
the methodology of vsa is very tough to learn as compare to other methods of trading as per me. and initially we dont know how to learn it. people have tried for years learning and applying vsa in wrong way. i dont want to quote anybody's name but there are couple of id's in traderji also who have left it after trying it hard. but their learning was wrong and having lots of holes in understanding of vsa.
its seems that you are mixing vsa with some other system of yours, which again is another dangerous thing as per my exp as i have tried so many different combos with vsa and none worked for me (it may work for you).
it is tough to master vsa but once you have mastered it even if you are not using it your chart reading skills will be at new level.
kindly take the above in right spirit. Normally I dont get into such things but seeing you putting efforts in vsa i thought of writing here.
regds
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