Thoughts on Day/Swing Trading

[hawaisanjay]

ST da..
1 market gap up...moves straight up
2 market gap up..moves sideways
3 market gap up..moves down
vice versa for gap down
how to identify this?

 

[timepass]

ST, requesting your comments in "Bollingerbands" threads about the ATP/VWAP and LTP difference. Post Nos. 2071 to 2073.

Checked that post....that post and few nearby posts need some reading...so will do it after the market time.

ST

A reminder. Waiting for your inputs.

 

[merchantp]

Thrust ...sideways....thrust

Markets very rarely go straight up or down....but the trend manifests itself in sequence of Thurst,Sideways,Thurst . The sideways hase after the thrust is necessary as the weak holders book profits,scalpers book profits, strong holders buy more,and then comes a breakout from sideways movement.

In todays Nifty Futures there are 4 such sideways zones marked...market brokeout each zone with a strong thrusting bar to continue its uptrend. Thrusting bars are like a rocket launcher which launches the rocket into the new orbit and in strong trend , it will not come back into the orbit ( sideways zone ) once it leaves it.....once we understand that , the rest is easy... We can use this behaviour of the market to time our entries, trail stops, adds....


Smart_trade

Hi ST Sir.

In example 3, i would had entered during doji which would had looked like a real break out and then later on turned to be doji

Do we need to wait for candle to be completed ? Sorry, if Iam asking a silly question here,

 

[pay2gain]

Well, in my opinion, day trading is safer when compared to scalp trading. Scalp trading will end in minutes, therefore the risk level will be higher. Its better to get some experience in the stock market before entering into scalping

 

[Smart_trade]

Hi ST Sir.

In example 3, i would had entered during doji which would had looked like a real break out and then later on turned to be doji

Do we need to wait for candle to be completed ? Sorry, if Iam asking a silly question here,

No issues....but when the candle closes as a doji and inside the range, quickly get out of long positions below the low of this doji.....

Another way is to wait till the candle closes above the range and closes as a strong bullish candle and then buy....but the trade off is your entry is delayed and stoploss goes a bit far....

Smart_trade

 

[DanPickUp]

How to trade the range 4925 to 4937 with out risk: It was 68 points in two hours with one position?

 

[Smart_trade]

How to trade the range 4925 to 4937 with out risk: It was 68 points in two hours with one position?

Hi Dan,

If you are referring to zone 3 shown in the chart, sell near the top of the range, cover and go long at the bottom....with a stop of slightly above/below the range.....but in actual practice difficcult to catch every turn precisely and in case of breakdown/breakout of the range, a loosing position has to be reversed without any further thinking as there will be a large move in the direction of the breakout....

One way of trading it is trade as short term/ scalp trade with 1/2 the normal quantity ...so that we are kept " employed" during the sideways.....and we can trade the normal full quantity on breakout/breakdown.

But if one is a bit lazy type like me....wait for the proper breakout from the range....trading in the 10-12 points range "could be injurious to our trading account". Trading ranges tire us out....breakouts / breakdowns are fun to trade....

Smart_trade

 

[DanPickUp]

Hi Dan,

If you are referring to zone 3 shown in the chart, sell near the top of the range, cover and go long at the bottom....with a stop of slightly above/below the range.....but in actual practice difficcult to catch every turn precisely and in case of breakdown/breakout of the range, a loosing position has to be reversed without any further thinking as there will be a large move in the direction of the breakout....

One way of trading it is trade as short term/ scalp trade with 1/2 the normal quantity ...so that we are kept " employed" during the sideways.....and we can trade the normal full quantity on breakout/breakdown.

But if one is a bit lazy type like me....wait for the proper breakout from the range....trading in the 10-12 points range "could be injurious to our trading account". Trading ranges tire us out....breakouts / breakdowns are fun to trade....

Smart_trade

Dear ST

Thanks for your quick comment.

Dan from the option side

 

[DanPickUp]

Deleted ------------------------------------------------------------------DanPickUp

 

[trade2profit]

avad,

Shorting at the place shown by you does not look safe....

ST

Hi ST Sir,

Can you please also provide a reason on above opinion as would help to clear doubt and understand better.

Few posts below, i saw a discussion where it was fine to go short below low of a aggressive pivot in a down move ( SL as top of aggressive pivot ) and it looks a similar scenario here where we have multiple privots ( inside bars ) after a big down bar in the second short marked by Avad.

Thanks,
T2P