Pace of movement

Hi All

I wud like to know how u guys understand the pace of movement of market in intraday.

It is so confusing for me, i wonder anyone have any strategy/proper understanding of what to expect from a scrip/market during any particular day.

Iam asking this question bcos, I always land up in different sets of opinions when it comes to booking profits.

For eg

Look at todays Axisbank's chart (5min TF)



Those levels are imaginary and i wud like to know from each of the GURU's or experts, how u really read the scrip when AT THE TIME OR POINT of BUY
(Take days low as SL)
1. Where to book profits?

2. How much to book at each level?

3. Do u really expect the scrip to move like this today?

4. Do u intend to enter again in between? IF so at what level and why?

5. What is the contribution of Volume here in this case? Bcos intraday volume studies are tough to analyse. I have seen, with very less volume, price increases to great extent OR big volume seldom bothers to move the price...and those great volumes of peaks indicating distribution etc. But these kind slow and steady movement really irks me.

6. When can we really expect a move like this which may touch all the profits levels possible intraday? Like..after certain days of inactivity of srip etc OR on a particular day of the week OR just before result announcement OR any news on Axis bank today/yday?

7. Do majority of successful traders just book all at TGT1 and escape? Is there at all an indication which tells that this scrip will defy gravity today? Esp when we compare with what happened to its sister scrip ICICI bank today, which had flat to negative bias.



8. Any other point u wud like to point out here

Pls let me know ur opinion/ideas/experience/thinking/expectation etc AS at the Point of Buy and not after seeing the entire chart.

Thanks all GURUS

great going bhai jee
I would also like to know and understand these things
thanks for opening the thread

good initiative...!
yahoo.com

those who dare to shed their shyness to seek knowledge do get them u dare dear friend

Good set of questions, my friend, shows that you are serious about learning the craft. I am neither a Guru, nor an expert but as I trade for living , thought of posting few of my observations here.....

Axis bank had taken the breakout the earlier day...it is a good practice to decide which scrips you will trade based on the chart of higher timeframe ( 30 min/daily timeframe) we study the earlier day. Axis opened with a gap and took out high of the opening bar after a bit sideways movement to indicate that it means business....ICICI Bank on the other hand could not take out the high of the first bar,could not even hold the gap and it is best to ignore it till it shows some strength to warrant out attention.

I am posting the same chart of Axis bank with markings to indicate how I would trade it. Always make it a habit to add in your profitable position and not think of booking profits at the earliest target. Book profits on large bars with very high volumes,near previous resistance points or when the trailing stops are cracked. NEVER book all profits in a hurry unless market indicates that it is not going up anymore.




I have shown 2 adds ( in uptrend I take 2 adds , 3 in downtrend ) and the movement of trailing stops ( shown by black lines) to show that you could have stayed in full position till the end and made a bumper day....we need such bumper days to take care of small losses we make here and there....
If you cannot control urge to take profits then take 1/3rd....1/3rd....1/3rd at various points....but dont book too close to your entry and for no apperent reason....

Even if you book early and see that the market is trending well....enter in the position again and ride the rest of the trend.

I fully know that what is said above is difficult...but it is essential to be profitable in the markets....

Sincerely hope the above observations help......

Best wishes,

Smart_trade

Thanks a lot Smarty


This is one thing which i miss. I book at first or max at the 2nd tgt. So whenever i see these big moves, i realise that there are going to be bumper days which we shud'nt be missing. But i fear that these kind of bumper days are far apart and in-frequent, which makes me feel that it is better bet to let it go...what is ur thought on this?

Well said and point taken



Though i have very good systems in place, i feel that understanding these finer points/intricacies like, how well our scrip is going to perform today, wud really help to take my(others like me ) trading career to next level

I feel that other experts will come out and respond whenever they are free but, i hope that there is some trail, with which we can smell that it is going to be a bumper day today.

Will there be any indication from EOD (TF=daily) data?
Really dont know...

HOW TO IDENTIFY A STRONG TRENDING DAY

I had posted silmilar post earlier, just reproducing the same here....

Nobody can identify a strong trending day before the day starts...but as the day's market action progresses, it can be identified with fair accuracy. Some of the tell-a-tale signs of strong up trending day are as under : Mirror image for down trending day.

1) Strong up day starts near the bottom of the day's range and closes near the top of the range both within bottom/top 20%. This means that the market does not retrace much after opening and quickly gets down to its business.

2) Strong up days are made of 1-2 Wide Range Bars ( WRBs)with large volumes.

3) In up trending day the rallies will be have more volumes than declining bars.

4) In uptrending day, there are no frequent reversals.

5) Market overall is strong and broadbased meaning there is strong move in many stocks/indices.

6) In uptrend day market does not retrace much....retracements are small and market gains the retraced ground fast.It is my thumb rule that if the market in-between retraces more than 25 points in Nifty Futures from its intraday top,chances of strong up day are remote.

7) In strong up day market gallops after 2:00 -2:30....and rises very fast from 2:45 to 3:10....and may retrace some ground gained afterwards.

We daytraders must have some large trend days on our side ,where holding till end and adding on every dip is all we need to do , to keep us on winning side.

Best wishes,

Smart_trade

Whether providence or coincidence , I do not know but its pretty interesting just after these posts we had a HUGE trending day

Thanks ST for your ever green and useful insights

Yes todays market had all the signs of a large range up day and it turned out to be so....

ST