Thoughts on Day/Swing Trading

ST, when a scrip has been trading for a long time near its ATP, there comes a time when it tips over to one side. Is there any way one can predict that ?

Timepass,

When market trades near its VWAP for a long time means the market is in sideways phase. If the pice and VWAP have come down from the top and now going sideways, the chances are we are going to see the breakdown soon so position yourself for that breakdown......mirror image for breakouts....meaning market and VWAP both have come up from the bottom and now going sideways, expect a upwards breakout. But I use this tool for the end game only as there are many more effective techniques to judge the direction of the market. And by the time we come to end of the day most of the time we are positioned in direction of the final crash/pull .

Smart_trade

..... we sell 1/3 at 2R or 24 points profits, 1/3 at 3 R or 36 points profits and 1/3 at 4R or 48 points profits. We can bring our stops to our entry point when the market moves 1 R or 12 points in our favour.......the last lot can be put on the trailing stops instead or 4R .....

Now we come to the maths.....assuming very conservative 40 trades in a month, and 50 % success rate....and average 2.5 R profits....we loose on 20 trades so we loose 20 % gross and we make 2.5 R on 20 trades so we make 50 % ...that still leaves us 30 % per month......even discounting this and we make 50 % of this ie 15 % per month still a very good return with risk never exceeding 1-1.25 of our capital.

ST_da

As you said we can determine if the movement of the stock is good based on 21sma in 30 min tf. BUt which timeframe should we use for trading with 21 sma? 5 mins 0r 10 min.
thanks

Dear ST Da,

I also heard that monthly VWAP can be used for predicting the direction of the expiry.

How can monthly VWAP be used in this?

i will be highly thankful to senior members , if any of them can update last day,s nifty entry & exit & ST sir 's comments on this,, it will help to understand newbies how to take trades as per this method & one can improve his mistake too in this way.....