My Journey In Technical Analysis

Discussion in 'Members Discussion Forums' started by XRAY27, Oct 8, 2015.

  1. XRAY27

    XRAY27 Well-Known Member

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    This thread is only for expressing my stages of learning in Technical analysis..
    From indicators to price action ,i will update this in evening ,may be in one or two post/s which may help learners :)

    Happy trading !!!!
     
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  2. XRAY27

    XRAY27 Well-Known Member

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    First study of technical analysis was
    “Technical Analysis of Stock Trends by Robert D. Edwards and John Magee”…

    This is the book that showed me the way for technical analysis and in depth of it made me to understand new dimension of trading-chart patterns

    With chart pattern I used to trade only positional trading…results was good and survived in 2007 and 2008 with notable income…

    There after TA book from Capital markets only to see the charts of Indian companies

    Technical Analysis - Ideal for beginners.. this book were I have seen a glim's of candlesticks

    For practice I used to use graph paper for understanding candles…not with names but for knowing the logical force of candle that is buy pressure and sell pressure
    below is the understanding before..Steve Nilson

    [​IMG]

    For in-depth studied Steve Nilson work…


    Depth based trading :

    During that phase of trading people used to trade on depth or snap quote with ATP as a main base for intra day !!!Which I never understood as my positional trading is fine for me..In 2009 first importance of intra day trading is noticed..with very few charting tools it is not possible at broker terminal so gone to on line..
     
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  3. XRAY27

    XRAY27 Well-Known Member

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    Depth trading or screen based trading involves volume calculation and ATP stability ,both are important, once there is a violation trade generation is possible... volume spike is the vital factor there...off course screen trading is a bit complicated ;)...

    2009 is the year of experiments for intraday trading from afl/s to all some snake oil training :D :D..net result blowing of account at its best...that year was total waste..for me

    Sad part is i have not used the forum and missed some of the great teachers :(:(

    From mid Sep'2009 till the full year of 2010 i spent in studying various books among them, Constance Brown range shift of RSI and using MACD with multi time frame was showing the best results,for survival swing trading was only and no success in intra day..

    Real experience was with YTC,works and Albrooks which showed me the new dimension of trading structure in 2011

    4 years of experience tells me that...(2007 to 2010)

    What I want to do is get people to question the rationale behind the technical analysis tools they’re learning about. Just because they come by default with all charting packages and supposed experts mention them day in and day out on the internet, doesn’t mean they have any value. The fact is that if we’re confronted very often with something that comes from respected sources, we usually stop analyzing it and just take it on good faith.
    Fibonacci,Gann, seems to be a myth for me...Now, right off, I don’t want to imply that if I personally don’t use something, it automatically means it is ineffective.
     
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  4. XRAY27

    XRAY27 Well-Known Member

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    Price action experience :

    My core of Multiple time frame analysis for swing trading was the best and also good for intra day trading ..but changed to 30/5/1 mode of trading...Thanks to YTC...
    Forex sites which helped me to learn the demand and supply concept was the key for intraday system…

    After reading YTC…core idea of trading is same what Robert D. Edwards and John Magee”…told in there classic…we people always relay on some new stuff..without second thought..leaving behind the core trading idea !!!! this is the deadly mistake in trading career…as I said always question the logic of a trade setup… don’t by heart that

    Lets see the risk part under YTC on basis of market structure and swing points or pivots..and i go with market structure

    [​IMG]
     
    Last edited: Oct 9, 2015
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  5. XRAY27

    XRAY27 Well-Known Member

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    I have seen many successful traders (they are not members in this forum)..who use market structure for trading for intraday...with 1:3 and 1:4 R:R..They take margins from Broker also :eek::eek: and manage it with tremendous success..
    But i also trade market structure ..but will go with ideal bookish knowledge of 1 to 2 % risk per trade !!!...Reason i cannot spot best setup ...:(:confused::mad:

    Main advantage of some of my friends is there ability to spot BOF (Break out failure) at earlier stage...this is there lethal weapon ..target is fixed with tremendous success rate .....

    i too have some of the setups with good R:R,but only in positional trading which are not a repetitive almost rare ...:mad::annoyed:

    Bottomline:

    Every successful trader trades with 1 to 2 % risk per trade on capital is a myth..person with best R:R and strike rate can move with margin..

    With out this quality ..one must only use 1 to 2 % per capital never run with margin trading


    Even with success they suffer emotionally many times with margin..when market turns choppy..which i don't have ..thanks to MM guru's
     
    Last edited: Oct 10, 2015
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  6. XRAY27

    XRAY27 Well-Known Member

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    I think My level of understanding was tremendously increased with many TJ members contributions...specially ST da,Saint,Pratap,Tlahuicole,Manish,Manojborle,Anil trivedi,oilman,Raamakant,i may have missed any member/s please excuse me !!!

    Anding there works with in the market structure for low risk entries..helped me a lot

    Thanks a ton to all the members who helped me in gaining/enhancing knowledge of trading !!!
     
    Last edited: Oct 10, 2015
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  7. XRAY27

    XRAY27 Well-Known Member

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    Edge in Trading methodology

    Every trader needs edge to earn in market, which is some methodology for determining with reasonable accuracy the relative probability of the market price hitting your profit target before it hits your stop loss price. An edge is provided by a set of trading strategies, and a set of rules for when to use which trading strategies (briefly, when to follow a trend, when to fade a trend, and when to stay out.)

    With in the forum we can find different systems/methods whether mine,ST da ,Saint..they all have there own pit falls

    Knowing the pits in the method is very vital for our success and for arriving towards RISK management

    The ability to achieve risk control and cash management will make the difference between a successful trader and an unsuccessful trader. If you ever have the opportunity to watch a successful trader, you will see that they worry more about risk and money management than they do about where the market is going or about predicting when the next big move will take place. They aren’t looking to tweak their indicator.

    Lets deal with my system :

    1. Drawing the demand and supply for the HTF is the subjective thing...and some days are so fishy that spotting these areas are difficult :mad:

    2.Dropping to 1 min after watching 5 mins is another part as some move may be missed

    Saint sir Pivots:

    1. Sideways market is difficult to deal with this one

    Nifty nirvana:

    1. Too much's DP's to deal and high volume trading is not possible

    Pratap sir vwap

    1.So many arguments to enter a trade with vwap,+1sd ,- 1sd,+2sd,-2sd,-3sd +3sd..etc..with hourly bands 3-13 etc


    So synergy of all the benefits is the best way to capture "Merits" in each system to get advantage...

    The advantage in my system is, it best in sideways and also trending...just added "pivots" of saint sir to it, along with my definition of entry,and at start i used pratap sir band of 3-13 for profit booking..and add DP of niftynirvana.. not like rounding numbers... it is by demand and supply..zones..
    and in case of zones are fishy, then i go to EOD, quite often that day would have been inside day or NR day...
    off course i cannot ignore P1 entry of ST da.
    My intention is not to criticizing any system, but just want to present traders what i have used from various systems available in the forum.
     
    Last edited: Oct 11, 2015
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  8. XRAY27

    XRAY27 Well-Known Member

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    My stage of TA journey started @ 1 and ended @ 8 ...now what i use is just 8 and 2...(Price action with few tools)..this is the stage i stopped my education in TA :D ..Sad part is some days i go without proper management/hurry entries and these are the areas i should improve

    [​IMG]

    (Image Source: Internet)
     
  9. XRAY27

    XRAY27 Well-Known Member

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    Sideways market :

    Sideway market is a minefield to many traders,they think it should be avoided ,and trade only in trending market..but side ways also offer excellent R:R and trading them is very profitable..

    Grinding Markets

    These are the market we should avoid...with in the forum,i have posted them...

    Anyways repeating them..once again

    Teeth (These are names for my comfortability .. :D :D )

    It starts with IDC (Indecision candle ) and almost all the candle/s are in that vicinity

    [​IMG]
     
    Last edited: Oct 14, 2015
  10. XRAY27

    XRAY27 Well-Known Member

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    No play area

    In continuation of grinding market.. today nifty was with in the tight area offering no play in TTF...which i don't trade

    [​IMG]

    Today nifty fut..(charts are from previous posts

    [​IMG]
     

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