My daytrading

Re: The event which opened my eye towards breakout's

Seems market has only drunkards at the present.So friendship with drunkards is not advisable.

Best thing is to stand aside in the street and watch the fight between two drunkards.

Looks something similar to a guy
trying to climb a slippery pole,
One moment at the top the
next moment at the bottom..

Hi Raghavacc. Please let me know is there any difference between the two stochistic 3,8,4 and and 8, 3, 4.

Link to the pdf

Download

thank you....

Hello Munde,

There is a difference.

3,8,4


8,3,4

ICICI Bank yday was a perfect setup for our method.Y’day I did blend everything starting from adds to ST Bro’s gaps, price gaps,patterns,stoch .In one word ICICI Bank chart y’day gave everything that we want.It was an Ideal day.
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Looking at chart:

A.Break of high of day.Here I open 50% of normal size ( Hypothetically say 100 shares )as we are not sure of the type of trend or whether the move is going to continue in the same direction.As I wrote few posts back ,early morning trends usually are strong and move steep and not very often go for retest.Now OB>5bars as well.
Total open position in longs = 100 shares

B.PRICE GAP(Not ST Da’s gap).This gap happens when buyers are too enthusiastic and trend is in full force.I do add other 50% ( Hypothetically say 100 shares ) of once this price gap is sustained i.e: On close of green candle above that gap.OB>5Bars
Total open position in longs = 100 + 100 = 200 shares

C.Consolidation. Please note that I keep 50% ( Hypothetically say 100 shares as reserve as normal size is 200 shares ) over and above normal position for handling adds on super trending days. This 50% reserve is only for super trend days and cannot be used during normal days.

D.Add 25% reserve ( 50 shares ) as there is huge gap and then breakout upside ( This time ST Da’s gap).
Total open position in longs = 100 + 100 +50 = 250 shares

E.Consolidation.Red candles are tiny and has longer lower tails means more upmove is on the cards.OB>5bars one more time.30 Min chart at this point has an IB.

F.Add remaining 25% (50 shares ) of the reserve on breakout of IB as well as last swing high.
Total open position in longs = 100 + 100 +50+50 = 300 shares

G.Left with empty hand .No adds.
Total open position in longs = 100 + 100 +50+50 = 300 shares

Now comes your skill as a trader in to play.Thats why I prefer price action over system.Lets see the magic of price action.

H.Price makes a swing high.
Total open position in longs = 100 + 100 +50+50 = 300 shares

I.Price goes and reaches previous swing high but says I can’t cross it.Its also a version of tiny breakout failure!!!.In bar chart the same candle is a bearish engulf.
I offload 75% of my positions.(200 shares ) on symptom of trend exhaution.Next 2 candles do not show any symptoms of enthusiasm from buyers means trend is exhausting. Still we have not entered downtrend.Its a phase where you close longs and wait for further orders from the boss.

Total open position in longs = 100 + 100 +50+50 = 300 shares-200 = 100 shares

J.Here is where the neck of the double top is.Thats where my SAR is. On break of the Neck of this double top I do cover remaining 100 longs and open 50% of positions of normal size as short orders ( 100 shares ) which means I will be placing 200 shares as sell order at point J.

Total open position in longs = 100 + 100 +50+50 = 300 shares-200 = 100 shares - 100 shares = 0
Total open position in shorts = 100 shares

K.Price makes lower high and I do add another 50% of normal size to join friendship of 100 shares which are already in short( 100 shares )

Total open position in shorts = 100 +100 =200 shares.

L.Time up .Cover 200 shares short positions by end of the day.

Total open position in shorts = 100 +100 =200 shares- 200 = 0

Note = Number of shares I have taken is hypothetical. It will depend on your size of capital, aggressiveness,confidence and more than that how much control you have on your mind.

A news paper in my native language carries a column every Thursday.It is a beautifull one and the editor of that newspaper writes on variety of subjects.

Today he wrote on a subject called “Friendship” and how people use it.This editor has lot of friends when he was an editor for a reknowned newspaper.The day he left that newspaper (Read the day he quit the position) the people who are called so close friends became traitors and started writing all dirty things about him.So he narrated one beautifull story.

There was a king called Mhmd.Reza Pallavi. He had a dog in his darbar.This dog was not an ordinary dog .It was so brilliant and tactfull that it knew who is close to the king and whom he don’t like. It used to wag its tail and brush its body at the people whom the king liked and barked at the one whom king hated within his darbar.

King loved his minister a lot .Hence naturally dog also loved him. One day minister came to the palace as usual. The dog as usual brushed its body at minister with unlimited wagging of the tail!!.Minister has a grand welcome by the dog.

Now the king had a secret meeting with Minister and when minster came out of the meeting the news was out.

The minister was sacked by the king.

As soon as the dog came to know this while minister was walking away from palace, it started barking at him heavily………………………………Luckily it didn’t bite him…

Even a dog hates you when you lose your position/wealth/money

I reflected back on my life.I had 2 “good friends”. They were so close that we used to have regular evening dinner,then discussion,chat till midnight.We used to travel very long.Even I took one of them abroad and he stayed with me there in my sister’s house.

Once I left the job and started on my own, they sensed that I am out.When I lost my fortune they sensed This friendship is "not worth".After that no whereabouts.One of them took all the help from me when he needed.

Another friend – I taught him basics of trading with patience without any expectations.Even he tripled his small capital.After that it seems I was found “Worthless”.Calls stopped.He calls once in a while when he "Needs" me.
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A Sanyasi was walking besides a river. He saw a scorpion being washed away in the flow of river. He stood and put his hands at the scorpion and saved it's life . While putting the scorpion back on the ground it bited his hands. Still he continued his love towards it and helped it to go away from the river.

A bypasser asked” Hey it was biting you. Still you are keen to save its life.I would have killed it.Why are you so concerned about its life”?

Sanyasi told. “Biting is its dharma i.e:A deed which you follow as per your birth.It followed It's Dharma.As human being Helping is my dharma.When such a small living follows its dharma, how can I divert from my dharma?”
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As a student Sudhama was very poor.Lord Krishna and Sudhama studied together. Then Sudhama got married and he had couple of children.Now he has more trouble.He needed to feed his family.

He went to the king of his state. King insulted him and knocked him to the street saying you are a waste.King made a mockery of him.

Then One day his wife reminded him of Krishna. “He is your best friend.Why can’t you go to him”?.

Sudhama say’s .I am poor.Krishna is very rich.What can I carry for him?

Then he thinks what all he can afford. puffed rice is what krishna loved.He decides to carry that.

Then he carries puffed rice in a tied torn cloth.Such was his poverty.

Sudhama goes to Krishna.Krishna leaves not even a piece of puffed rice. He say’s :”how can I forget you my friend?for me whatever you offer is so valuable than anything else in life because “it has come from true friendship”,you are my true friend.

Sudhama gets what all he wanted from Krishna.

When lord is your friend why to care for creatures?

Nice raghav ....its happened to me too how you described it ...wow great...:clap: