Thoughts on Day/Swing Trading

[del_66]

Bears running for covers

 

[balasoft80]

Hi ST,
Today I am just posting 30 minute nifty chart to understand the price action. I think we can interpret same price action to 60 minute as well. Could you please post your price understanding during your available time? Thanks much

 

[Smart_trade]

Hi ST,
Today I am just posting 30 minute nifty chart to understand the price action. I think we can interpret same price action to 60 minute as well. Could you please post your price understanding during your available time? Thanks much

Today's price action was simple. First 4 bars are continuation of the downmove which started yesterday. So short in the first half. See the 4th bar , it went below 4700 and closed as a strong bearish bar. Next candle was an inside bar. it failed to make new lows. This should alert us of possible reversal. Then 5th,6th,7th and 8th ...all sideways bars....still no new low. And once 9th bat takes out pivot high, it was clear that market has reversed...so above 1:00 high take a long trade with apropriate stoploss on 5 min bars......ride the upmove and when the move gets too steep, trail the profit taking below each successivey higher bars....so market takes us out below the low of 2:45 bar.....just 2 trades on price action.

Smart_trade

 

[Smart_trade]

TRADING THE HOLY GRAIL

Posted Nifty Fut 5 min chart of today 06-01-2012. The entry is on pivots, and trade direction determined by 21 SMA red line. Plain vanilla entries...no indicators, no oscillators,no higher timeframes ....not to complicate life with all those.

Below the red line we are looking to go short.....above the red line we are looking to go long......stops trailed as per shown in black lines.

For profit taking we have taken help of stochastics positive divergence....also the green arrow between 10:00 and 11:00 is a Sequential Buy point.....additional reason for booking profits there.

In the long trade, the move gets steep and we trail the profit taking levels to the lows of each of successively higher bars.....

Trading is simple...we traders make it too complicated......

Smart_trade

 

[adityasaraf007]

Hi ST Sir....
Just to make the trend (21 SMA) visually more easy to identify.... Here's an afl which would draw it in different colors while moving up and moving down....

_SECTION_BEGIN( "MA" );
P = ParamField( "Price field", -1 );
Periods = Param( "Periods", 21, 2, 300, 1, 10 );
Plot( MA( P, Periods ), _DEFAULT_NAME(),  IIf( Ref( MA( P, Periods ), 0 ) > Ref( MA( P, Periods ), -1 ), ParamColor( "ColorUp", colorWhite ), ParamColor( "ColorDown", colorOrange ) ), ParamStyle( "Style", styleThick ) );
_SECTION_END();

Good night!!!

 

[Smart_trade]

Hi ST Sir....
Just to make the trend (21 SMA) visually more easy to identify.... Here's an afl which would draw it in different colors while moving up and moving down....

_SECTION_BEGIN( "MA" );
P = ParamField( "Price field", -1 );
Periods = Param( "Periods", 21, 2, 300, 1, 10 );
Plot( MA( P, Periods ), _DEFAULT_NAME(),  IIf( Ref( MA( P, Periods ), 0 ) > Ref( MA( P, Periods ), -1 ), ParamColor( "ColorUp", colorWhite ), ParamColor( "ColorDown", colorOrange ) ), ParamStyle( "Style", styleThick ) );
_SECTION_END();

Good night!!!

Thanks Aditya, that AFL should make it visually more easy to see the trend...and trade....helpful indeed....

ST

 

[NTrader42]

TRADING THE HOLY GRAIL

Posted Nifty Fut 5 min chart of today 06-01-2012. The entry is on pivots, and trade direction determined by 21 SMA red line. Plain vanilla entries...no indicators, no oscillators,no higher timeframes ....not to complicate life with all those.

Below the red line we are looking to go short.....above the red line we are looking to go long......stops trailed as per shown in black lines.

For profit taking we have taken help of stochastics positive divergence....also the green arrow between 10:00 and 11:00 is a Sequential Buy point.....additional reason for booking profits there.

In the long trade, the move gets steep and we trail the profit taking levels to the lows of each of successively higher bars.....

Trading is simple...we traders make it too complicated......

Smart_trade

Thanks for this example and method.

I use SSMA 20 Envelope with M5 on Crude Oil, I guess 20/21 should not make a big difference but i try to take the directional clue from HTF (M30)

Would directly trading based on direction indicated by MA 20/21 give a few more whips? At my end I will try to scan the old charts and see how it works on crude oil, but will also like to know your view. Over all which is better, trading M5 in direction of M30 or directly using the MA21 direction on M5.

Thanks

 

[Smart_trade]

Thanks for this example and method.

I use SSMA 20 Envelope with M5 on Crude Oil, I guess 20/21 should not make a big difference but i try to take the directional clue from HTF (M30)

Would directly trading based on direction indicated by MA 20/21 give a few more whips? At my end I will try to scan the old charts and see how it works on crude oil, but will also like to know your view. Over all which is better, trading M5 in direction of M30 or directly using the MA21 direction on M5.

Thanks

Having traded both the methods, I have found that trading pivots in the direction of 21 SMA gives better and early trades. And as we are trading on pivots, and supposing you go long over a pivot high( above the red line) the moment it closes below the red line or takes out the pivot low ( even though it is still above the MA line ) we liquidate the long position. This way our losses are kept low.....and a few large trend moves and few small profit moves and few small losses overall give very good results.

In any MA based method the sideways period is sure to give whipsaws and frustrating trades....the trick is to step aside the moment you sense that the market is making sideways moves . No one will know that we are in sideways correction initially but as the market unfolds, it quickly becomes clear that the move is sideways.....it is best to step aside and wait for the sideways zone to be cleared.

Smart_trade

 

[murthyavr]

Dear ST,

Since the discussion is going on about MA-21, I have a question here:

After the prices cross the MA line, we may find one candle above the line
and the low of the candle also will not be touching the MA line and will be
above it. Similar cases can be found when the prices cross down the line also,
with the high well below the line.

Let's call them Free bars. MA in this discussion is SMA(21).

The first Free bar above MA line or the first Free bar below the MA line - do they
have any significance in your experience - in terms of trading the high/low of
them, as the case be?

 

[techtrader2]

ST this is a great method...would really help if you could put up sample trades in this after market hours on a daily basis so that we all get a hang of it...

also regarding exits if we could maybe quantify the rules better so that we can follow it mechanically...currently in exits we are looking at many things which makes it a bit more confusing...pls help here...