My daytrading

[sumitdasjoshi]

hello raghav its great post by u i just have a one question few post ago u mentioned a big red calndel with 60% volume i dont understand it will be great help if you elobreat it littel bit thanks.

 

[Raghavacc]

hello raghav its great post by u i just have a one question few post ago u mentioned a big red calndel with 60% volume i dont understand it will be great help if you elobreat it littel bit thanks.

Hello Sumit,

Let me keep it simple.

One of Yesterdays 30 Minute candle was a red one and big in size.It has huge volume.That means we had heavy supply in that area. Now 50-60% of that bar from down will act as resistance which means demand will be dominated by supply at half of that bar from down. In market its also important to know which is demand area and which is supply area and then which one is dominating.

Regards
Raghav

 

[sumitdasjoshi]

thanks raghv i want to learn more about what u just mention will you suggest any post where i can learn more about that it will be great help

 

[AW10]

Sumit, I would refer this 60% in terms of fib level of 62.8%. retracement.
for ease of use, u can very well approximate it to 60% and that's what Raghav has discribed here.

If you visualise, then that big red bar can be called as a major wave in 1min chart... or any low TF chart, which might have been made up of few smallers internal wave.
In 30m chart, this all is covered up in 1 big bar.. so when u consider 60% of big bar, it is like looking into the mind of 1min chart trader who is waiting for 60% retracement. That is as deep as a retracemnt should go to, to keep the prev trend in motion (most of the time). If price can retrace move then 62.8% (or 60% appox), then most likely we are seeing the reversal..it is no more retracement.

Do spend time in understanding the difference between retracement and reversals and u will see the difference in your chart reading skills.

Happy Trading.

 

[Raghavacc]

thanks raghv i want to learn more about what u just mention will you suggest any post where i can learn more about that it will be great help

Sumit,

For that sake you can visit "Technical analysis section" .There you get theoretical knowledge of TA. However if you are a day trader I mind you its one of the toughest business and it needs hundreds of hours of effort, experiment and screen time.

Trading is such an art, business and profession -there is no school, university,college - Its a way where you will get lot of thorns which you have to tackle on your own but once you cross that you get beautifull flowers!!!.

Regards
Raghav

 

[Smart_trade]

Simple Trader.Good question.

In 5 Minutes timeframe you tend to get noise till you get hang of it. Its natural. Don't mind. If you follow these rules framed by ST bro will be in perfect trades most of the times.Lets assume we have opportunity for shorting: Now we have candle number 1 which is a starting candle. Then candle number 2 which would have closed below candle number 1. We enter only at candle number 3 if that takes out the bottom of candle number 2 . By this time invariably Stoch has to come to neutral zone.

The rules for entry are:
1) The oscillator should have gone to overbought zone.
2) Wait for a bar where the oscillator flips...ie comes out of overbought zone and comes in neutral zone....
3) In doing step No 2 the oscillator should not have stayed in overbought zone for 5 bars and more
4) Wait for a downclose ( meaning close less than earlier day's close)
5) Ensure that by that time oscillator does not go very near oversold region
6) Sell when the low of the downclose bar is broken on downside.....


Further thats the exact reason I have been merging BB with this method so that newcomers can perfect the entry initially.

See the chart below. the first arrow indicates a area where BB top band pierced green + RED. now watch for next down close below the bottom of that RED candle which was pierced by BB top band. Its the 6th candle where I have marked a line .See stoch its already in neutral zone .go short as all 6 qualifiers are met.

See my 2nd arrow.Same phenomena. What a beautifull trade that was. Try to perfect these entries .You will realise how powerfull it is. Practice. Practice .practice.You WILL get it.

http://img16.imageshack.us/img16/2654/niftyentry.jpg

Regards
Ragahv

I have to mention with all humbleness that these entry qualifiers were not researched by me...they are developed by a great market researcher Thomas DeMark whose methods I follow and greatly respect. I have just traded these successfully for many years and then collected those and posted in my thread so that others benefit.

I have mentioned this fact in my thread as well and I claim no credit for developing these qualifiers.....This should help put things in correct perspectve....

Best Wishes,

Smart_trade

 

[Raghavacc]

I have to mention with all humbleness that these entry qualifiers were not researched by me...they are developed by a great market researcher Thomas DeMark whose methods I follow and greatly respect. I have just traded these successfully for many years and then collected those and posted in my thread so that others benefit.

I have mentioned this fact in my thread as well and I claim no credit for developing these qualifiers.....This should help put things in correct perspectve....

Best Wishes,

Smart_trade

ST,

Fully aware of that fact.Its highly difficult to understand the language and the jargons of Thomas Demarks Book .I am going through that currently.Any newcomer to market can never understand the technical language that he uses. From that perspective your efforts become commendable.The oscillator thread is very easy to understand even for a novice.
The credit for making it a common mans system goes to you. The teaching in that thread was a classic one..

IMO here in this thread there are none who would start arguing who invented it and all those unworthy things. Hame aam khan hai. Ped gin na nahi!!!.

Regards
Raghav

 

[Raghavacc]

Sumit, I would refer this 60% in terms of fib level of 62.8%. retracement.
for ease of use, u can very well approximate it to 60% and that's what Raghav has discribed here.

If you visualise, then that big red bar can be called as a major wave in 1min chart... or any low TF chart, which might have been made up of few smallers internal wave.
In 30m chart, this all is covered up in 1 big bar.. so when u consider 60% of big bar, it is like looking into the mind of 1min chart trader who is waiting for 60% retracement. That is as deep as a retracemnt should go to, to keep the prev trend in motion (most of the time). If price can retrace move then 62.8% (or 60% appox), then most likely we are seeing the reversal..it is no more retracement.

Do spend time in understanding the difference between retracement and reversals and u will see the difference in your chart reading skills.

Happy Trading.

AW,

I think this forum miss a thread on fib retracement if I am correct.

Regards
Raghav

 

[MarketRider]

One of the best thread in TJ, good work ....:clapping::thumb:

 

[DanPickUp]

Hi

I do not trade any naked future. I want you to know that.

At this time I only trade futures when I have my insurance.

I may chance that in the future.

I still have one question :

Trading with one indicator goes against all my knowledge in trading.

Take care

DanPickUp