CoolWorks

Hello Amit,
I have downloaded the coolintra just today and have not started using it. Will start using it from Monday though.But what i understand from the help file is that it classifies the scrips into 4 categories based on full high, partial high, full low and partial low.
Full high- If the stock opens higher than the previous day high then it is a full gap up or full high.
Partial high- If the stock opens higher than the previous day close but not higher than the previous day high then it is a partial gap up or partial high.
Full low - if a stock open lower than the previous day low then it is a full gap down or full low.
Partial low- if a stock opens lower than the previous day close but not lower than previous days low then it is a partial gap down or partial low.

Also coolintra provides support and resistance levels.

What i learnt in stockcharts is that we have to take positions( long or short)based on the Gaps. If a stock gaps up fully then it would be better to go long when the stock crosses the high (made before 11 Am). But if it doesnt cross the high (made before 11 am) and instead if it would go lower than the low (before 11 am) it wouldnt be wise to short it.
In other words "Go only in the direction of the gap"
Also i think it would be better to go for stocks which have opened with a full gap up and coolintra would be a great help in giving the list of stock which have a full gap up.
I would like to thank Cooltetra for this.
Vice versa for short.

Hello cooltetra,
Thanks for the 1% exit method. Its simple and i will use it from my next trade. But what i couldnt understand is that you mentioned about placing another market order at 1% difference. Is it not enough if i place a stop loss order at the time of entering into a script.
The support and resistance levels in coolintra worked great but i could not understand your other comments in the chart. How can one enter at 582 (SL 1) when it is not even 11 am and a high is not still decided. What are the other SL figures. Please explain me.

Once again thanks for the application you created. It will make my work easier.

P.S.- I have a small Video tutorial of Daytradinguniversity which explains gaptrading. I would like to share it with you all, if only anyone could explain how to send it to you. It is of 4 MB and it is not possible to attach here. Any other options!!!!!

Thanks
Satish...

Hi! Satish,

Thanks a ton for your reply. You really explain things really nicely (like Saint).

You can upload the video tutorial at http://**********.de/ After uploading the video, could you please post the link for us to download the same.

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Some queries that I have ...

1) What would be a good filter for volume (in terms of numbers).

2) What I have understood from your earlier post is that one should look at full gap up & full gap down stocks. Even then, there are so many stocks that show up, that the sheet tends to get cluttered. How do you shortlist the full gap up & full gap down stocks.

3) Assuming we are looking at full gap up stocks, let's take a look at the following example:
A stock's high on the previous day is 100. The stock opened today at 110 & at 11.00am, the stock is 102.

a) Do I consider the opening price of 110 as the high of the trading time from 9.55am - 11.00am. If this is true, do you find stocks consistently (after 11.00am) going higher than the opening price.

Is this true for full gap down stocks also???

4) How have you been choosing full gap up & full gap down stocks till now.

5) Please do let me know how you can use the spreadsheet in your simplistic style.

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Some thoughts for Cooltetra ...

1) If we are going to use the spreadsheet for Gap trading, would it not be easier if at 11.00am, we click on a button & a list of full gap up stocks show up that crosses the high by a rupee made during 9.55am & 11.00am. Same goes for full gap down stocks.

Also, according to me, the fewer stocks that show up, the easier it would be to monitor.

2) Can we add a filter where we want to put in symbols for stocks that we choose.

3) When we click on a symbol, we get the charts provided by finance.yahoo.com. Can we get a link to the charts provided by nseindia.com instead of finance.yahoo.com. The reason is because the charts shown by finance.yahoo.com have a time lag of 15 minutes & would not help in intraday trading.

Cooltetra, "Medved Quote Tracker" shows charts realtime from nseindia.com. Would it be possible for you to link the same to nseindia.com.

4) In the "Help Sheet", there is no description next to the -3.5% under Column J / % Change. Could you please let us know what's that for?

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Request to Cooltetra & all members ...

Would be helpful if Cooltetra & other members who are using this strategy could tell us about the filter used for volumes / how do you'll shortlist the stocks to the bare minimum & anything else that you'll would like to share.

And once again, A MILLION THANKS to Cooltetra!

Satish, Cooltetra & other members, please do reply ...


Thanks & regards,
Amit

Hi Satish
Thanks once more for your interest in CoolIntra.

Lets take your queries one by one..
I use PIB and somehow, the stop loss with the original order does not work for me. Also, I am not sure how will you change your order (with the stop loss) once it has been executed. By keeping a different order (the stop loss order)I feel I have a better control over my trade. It is just a personal preference.

The support and resistance formulas are not mine, but have found them to be quite effective. In the chart shown, SL1 is not the entry point. It is the initial stop loss point. Once you enter the trade at 589, after 11, you have to put another order of SL1 at 582. You will not move this order in any way in the reverse order that is the SL1 point will not go to 581 in any case. If you want to be very active, with every one Rs. rise, you can move your stop loss towards your entry point by 1 Rs. So that effectively, you have a difference of 1% between the market price your stop loss point.

SL2 etc are arbitrary point where you have moved your stop loss, when the trade is going in your direction. So, we have SL1 as the initial stop loss order when you enter the tread. This will protect you from loosing a lot. When the price has reached 593, you will move your stop loss to 589, your entry point (denoted by SL2). So, now, at the most you will loose only the brokerage, When the price has moved to 598, move your stop loss to 593, now you will at least come out with a profit (SL3) and so one. If you look at CoolIntra pivot points, you will see that 595 is the pivot, so once the price has risen above it, your stop loss can be very near the pivot (just below it).
Continue in this way and be ready for a reversal any time it reaches R1, R2 or for that matter any of the prices shown in coolIntra (R1, R2,P1,S2,S1), you can cut your tread as soon as you feel, it has hit the resistance and retreating. So, in the example we are using, when you see it has hit 611(R1), and retreating, you can cut your tread. There is no point waiting for it to come to your stop loss. Though some times, the momentum can take it beyond R1 after some retreat.

Also note, analyzing a price after all the action has taken place is very easy, there is no hard and fast rule that if this has occurred in past, this will also happen in future. But yes with discipline, and rules you can come out winner or at least loose a bare minimum. Discipline is the most important part in intraday trading. You have very less time to analyze any thing. It is the most Riskiest way of trading.
CoolIntra, gives you some points, some scrip which you can use for trades.


About me: ( you should know this as you may trade according to my views)
I am yet to make any decent profit in intraday trading. But, yes, compared to my initial days( this is the 5th month of me entering the market), I loose less. And some days I come out with profits too.
You can use coolintra for good trades, but more than anything like CoolIntra, it is you, who makes the difference in the outcome of any trade.

Tread safely, and remember, this is not the last day you are trading.
This is something I tell myself every day.

Best Regards
Coool.

Hello gobatman,
I will upload the tutorial very soon and will be giving you all the link.

About your queries
I cannot give you definite numbers for volume as it differs from stock to stock but what i can say is liquidity is very much essential for day trading. Dull stocks without any significant movement in price donot qualify for day trading. volumes comparision is a relative term and if todays volume is around the same as the days of the preceding week then it would qualify for trade. But what you should you look for is volatility in price.
The three days before day before yesterday were days when the market was relatively dull and there was no great movement( if we would not consider movement in the last half and hour or so). Trading in such market conditions is something i dont prefer. And yes, if the market is going down in the day ,one should be cautious when buying a share even if it crosses the previous high before 11 am. i would prefer shorting instead, if it crosses the previous low before 11 am. Vice versa when the market goes up. In other words,"keep an eye on the overall market too and not only on the individual stock".

Coolintra 1.1 contains a sheet called master sheet. Column H shows all the stocks which have a gap in their open, either full low, full high, partial low or partial high.
HF Full High
LP Partial Low
HP Partial High
LF Full Low

one more line... It is not necessary that there should be a full gap up or full gap down. one can also trade partial gaps up or down, but i think it would be better to go for full gap up or down stocks though i did not look for them previously.This is only my thinking.Previously, i only used to trade high or low crossovers.

The stock is at 102 at 11Am, but before 11 AM the high acheived was 110( which is equal to the open) No concessions here!!!, we trade only when it goes above 110 or preferably 111 after 11 AM. But still if you would like to trade even before a stock crosses its high ,the supports and resistances by coolintra would help, but i prefer to stick to the rules.
Yes, we can find such stocks which go higher than their previous high before 11 am. Till now, my strategy was to watch CNBC before market opens and note down some stocks which are recommended by them and constantly watch them. Too tiring!!. But now coolintra1.1 would do that work, thanks to coolworks. I have a suggestion for this to cooltetra which i would mention later.

Yes.

As i have told i watch CNBC for it. Previously i only looked for stocks which just crossed their previous highs before 11am, and did not look weather it was a full or partial. But now i can finetune my strategy with coolintra. Thanks again to coolworks.

Before i explain the use of spreadsheet, i would like to say that i have not used the spreadsheet till now and would start using it from Monday.
Okay, now coming to usage---- You might have read the help file for the basic functioning. click Refresh in master sheet to get realtime quotes after market opens. I assume you already have done your homework of getting the previous days data. Now when the realtime quotes are fetched, column H tells us about the type of gap. Out of these select some of them which are in HF (full high) category for buying and some from LF(full low category) for shorting.
At 11 am watch the highs or lows of all the scrips you have selected and just wait for them to cross their high or low. and when crossed enter the trade with a stop loss at the support1 which is given in the master sheet. Coming to exit methods, as the scrip price rises, keep increasing your stoploss such that the differnce between current market price and stoploss is only 1%.
Thats all...
You can ask me if you need more clarifications.

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to coolworks.

Hello coolworks,
First of all i would like to thank you for the application. It would make my work easier.
One small request....
According to this strategy, we trade only when a stock crosses it previous high or low acheived before 11am. So it would be tiring to look at all the stocks constantly to watch which of them have crossed the required prices.
It would be better if there is some sort of Alert if any stock crosses the high or low. Or a beep sound, but it should also show the name of the such scrip.
And as the data from yahoo is delayed atleast by some seconds, it could notify us when the scrip rises to a price which is 2 or 3 Rupees less than the high or when it comes down to 2 or 3 rupees more than the low. We would then concentrate more on those stocks and it would be easier for us to concentrate on these potential trades which may cross the required price a little later.

Well said Mr. cooltetra, Defeat is not final until we stop trying.


Thanks
Satish...

Link for daytradinguniversity video tutorial for gaptrading.
http://**********.de/files/24636877/...ets77.wmv.html

Thanks
Satish...

Hi! Satish,

Thanks, thanks & thanks for your reply.

It's people like you who make a difference in today's world.

I am posting a message to Cooltetra. Please do have a look at it. There is also a link to choose Volatile stocks (in case it's useful to you).

Cheers,
Amit

Hi! Cooltetra,

To sum up, to get "The Dream Gap Trading speadsheet / application", would it be possible to incorporate the following:

1) Scrips that show Volatility in % terms. Indiabulls has a list. Go to www.indiabulls.com. Click on "Markets & Research" on top of the page. At the bottom of the page, under "Real time Information", click on NSE / BSE next to "Volatile"

*** Right now, we have to do this manually.

2) A filter where we want to put in symbols for stocks that we choose

3) Ability to get Live Charts instead of Delayed Charts

4) And as the data from yahoo is delayed atleast by some seconds, it could notify us when the scrip rises to a price which is 2 or 3 Rupees less than the high or when it comes down to 2 or 3 rupees more than the low.

It would be better if there is some sort of Alert if any stock crosses the high or low. Or a beep sound, but it should also show the name of the such scrip.

Also, if we could get an alert (sound notification & visual alert) when the stock crosses the S2 / S1 / Pivot / R1 / R2

*** Thanks to Satish (Terahertz) for the above suggestion. I have added my 2 bit in.

Wow, if we can get something like this, then this would be a truly "automated" trading experience.

Cooltetra, a w a i t i n g y o u r r e p l y on the above to know what is possible from the above.

THANKS A TON once again for everything ...

Cheers & God bless!
Amit

*** Satish, incase I have missed out on anything or if you have any suggestions, please do let us know.

Hi Satish
Real nice video. Although was aware of the techniques, but definatly a very good refresher.
It also pointed towards a thing that should be incorporated in CoolIntra. %Gap. I am thinking in the direction to incorporate it. Does not look like difficult but definatly time taking as it will involve reformatting.

And must say, you have analyzed the sheet in real depth even without using it real time. Waiting for your inputs after your Mondy use.

Best Regards
Coool.

Hi! Cooltetra,

Have noticed that you are not replying to my posts.

Is there any particular reason. Did I say something wrong in any of my posts?

Please do let me know.

Thanks & regards,
Amit

Hi Amit
Nothing like that.
Satish has been answering the queries which you have been posting in much better way then I could have done. Thanks a lot to Satish. And answering them again would have been a repetition.
Regarding the features that you are suggesting, lets take them one by one
1. Getting the volatile stocks from IB site, looks interesting, will explore the possibility.
2. Having a stock screener. You would have to be a bit more elaborate. What exactly do you mean by "A filter where we want to put in symbols for stocks that we choose".
3. Live charts, I don't think I can manage that as per my current knowledge.
4. Alert/ Pop-ups for price check, is a very good point. I will explore on this.
May be I will include two more columns to note the high and low till a user selected time. And then once we have break of these two values, a message box (I don’t like this idea as we may have more than one qualifying) or a special color coded column indicating the position should appear. The user will have to press the buttons at regular interval to note the price change.


And one more thing,
Patience is the most important thing required (after discipline) to succeed in Intraday's trading.

Best Regards
Coool.