Thoughts on Day/Swing Trading

[ashwani chadha]

One point which I feel is important that one should try to understand himself during this period. Try to know yourself.
Everybody starts looking for different methods, alternatives as a part of learning or as a result of failure in 1 or 2 trades. Important is during this journey, identify what is best suitable for you, in terms of timeframe, in terms of method.
Person who is comfortable in trading chart patterns e.g. will trade pennants.
For the same script, another person who is comfortable with indicator might use MA or ADX to define trend and oscillator to enter the trade.
The point is one has to find his own comfort instead of running around methods. Once you find it, rest is automatically you will build strategy around it.

dear s-1585,thanks for your experienced thought

 

[Raghavacc]

One more......

 

[Smart_trade]

One more......

Yes Raghav....I too was observing that on the chart and traded it profitably....

ST

 

[403.forbidden]

They say that trend is your friend but that statement needs a qualification that it is your friend as long as it is not about to end.......how does one know that the trend is strong ?

I use following critaria to judge how strong the trend is...and when it is about to give explosive move. The technique I follow is based on Trends knowledge from William McLaren and also from Saint....All credit to them, I just apply that knowledge to the markets....

See those magenta colour lines on the chart ? Those are the lines showing gaps in the earlier top and the reaction bottom after breaking the tops....these gaps show that the trend is strong and about to blow off.. .... After such gaps the trend accelerates.....you can see that on any chart, any time frame......if coupled with other techniques, it gives great confidence to hold the positions, add and wait till the trend is about to end.....

Smart_trade
__________________

AWESOME ...Thank you so much.. (no thanks button)

 

[Smart_trade]

Markets routinely go into trending and sideways phases and see any chart on any timeframe, you will see periods of trending moves and sideways moves. Trend traders trading breakouts/breakdowns make money in trending phase ...but give back large part of that ( sometimes even more than what is made in trends )in sideways phase. Most of us always wonder whether there is any way to stay out of sideways moves....and trade only trending moves....as a breakout trader when a trader takes a position on breakout/breakdown he wants the market to move in direction of his trade...and move quickly. He will get frustrated if he sees market going nowhere and that is where he is prone to make plenty of trading mistakes.......

I have posted a Nifty futures 5 min chart for last 3 days. Here we see periods of trends and sideways moves....can we know that we are likely to be in sideways phase ? Yes it is possible.......

Let me explain....when you have points A and B defined and market does not break these two levels it is in a sideways phase.....so at C, D, E .....it is sideways so it is a no trade zone for breakout trader...a range trader can sell at the top end of the range and buy at the bottom end of the range.

I have marked No Trade zones and Trade zones.....you will see that if you trade only trade zones, you will catch 75-80 % of the vertical distance which the market has travelled in last 3 days. And the beauty is you have been totally out from sideways phase and thus not getting into those frustrating trades which give back the profits you earned in trending phases.

Anybody can trade a trend.....but if one understands when not to trade, that will make him an expert trader and separate him from the normal "must trade all the times" type of traders.........

Smart_trade

 

[anuragmunjal]

hi ST

pls correct me if I am wrong....if I try n simplify this chart..is it that u are looking for 2 successive lower highs n lower lows or vice versa to take a trade?

regards

 

[Smart_trade]

hi ST

pls correct me if I am wrong....if I try n simplify this chart..is it that u are looking for 2 successive lower highs n lower lows or vice versa to take a trade?

regards

What I am trying to do is once market defines its A and B levels, quickly recognise that unless these levels are broken either on upside for uptrend or on downside for downward trend, the market is going to be in choppy sideways phase and trying to avoid taking trades in this phase which are small and frustrating as market is going nowhere.....

The real money is made when market leaves its sideways area and moves into a new territory and I am waiting to trade this phase.....

ST

 

[ashwani chadha]

dear smart trade, i am very much thankfull to you for providing chart,in which you have given detail,regarding how gaps are catched at charts and then how furthur positions can be added with their help,over and above previous positions, again and again,till the move is in momentum,a very perfect and use full clarification ,thanks once again

 

[ashwani chadha]

Markets routinely go into trending and sideways phases and see any chart on any timeframe, you will see periods of trending moves and sideways moves. Trend traders trading breakouts/breakdowns make money in trending phase ...but give back large part of that ( sometimes even more than what is made in trends )in sideways phase. Most of us always wonder whether there is any way to stay out of sideways moves....and trade only trending moves....as a breakout trader when a trader takes a position on breakout/breakdown he wants the market to move in direction of his trade...and move quickly. He will get frustrated if he sees market going nowhere and that is where he is prone to make plenty of trading mistakes.......

I have posted a Nifty futures 5 min chart for last 3 days. Here we see periods of trends and sideways moves....can we know that we are likely to be in sideways phase ? Yes it is possible.......

Let me explain....when you have points A and B defined and market does not break these two levels it is in a sideways phase.....so at C, D, E .....it is sideways so it is a no trade zone for breakout trader...a range trader can sell at the top end of the range and buy at the bottom end of the range.

I have marked No Trade zones and Trade zones.....you will see that if you trade only trade zones, you will catch 75-80 % of the vertical distance which the market has travelled in last 3 days. And the beauty is you have been totally out from sideways phase and thus not getting into those frustrating trades which give back the profits you earned in trending phases.

((((Anybody can trade a trend.....but if one understands when not to trade, that will make him an expert trader and separate him from the normal "must trade all the times" type of traders.........))
[/B]
Smart_trade

thanks FOR THE USEFULL THAT IN BREAKETS

 

[lvgandhi]

Markets routinely go into trending and sideways phases and see any chart on any timeframe, you will see periods of trending moves and sideways moves. Trend traders trading breakouts/breakdowns make money in trending phase ...but give back large part of that ( sometimes even more than what is made in trends )in sideways phase. Most of us always wonder whether there is any way to stay out of sideways moves....and trade only trending moves....as a breakout trader when a trader takes a position on breakout/breakdown he wants the market to move in direction of his trade...and move quickly. He will get frustrated if he sees market going nowhere and that is where he is prone to make plenty of trading mistakes.......

I have posted a Nifty futures 5 min chart for last 3 days. Here we see periods of trends and sideways moves....can we know that we are likely to be in sideways phase ? Yes it is possible.......

Let me explain....when you have points A and B defined and market does not break these two levels it is in a sideways phase.....so at C, D, E .....it is sideways so it is a no trade zone for breakout trader...a range trader can sell at the top end of the range and buy at the bottom end of the range.

I have marked No Trade zones and Trade zones.....you will see that if you trade only trade zones, you will catch 75-80 % of the vertical distance which the market has travelled in last 3 days. And the beauty is you have been totally out from sideways phase and thus not getting into those frustrating trades which give back the profits you earned in trending phases.

Anybody can trade a trend.....but if one understands when not to trade, that will make him an expert trader and separate him from the normal "must trade all the times" type of traders.........

Smart_trade

Dear ST,
You have marked three no trade zones. In second where you have marked A B C etc, does not break any pivot. But in one and three it has broken previous PH. But trade is not taken as trend in higher Time frame is down. And no PL is broken afterwards. Hence as market goes it is seen as consolidation area. Am I correct?