Food for Thought

Vijay

This method is called " Touch Trading" which is a method of entering a position simply when price reach a level, expecting the price to reverse at the level without piercing through the level
Success of this method will depend on our ability to assess the strength of the level and strength of the current move.This requires a lot of experience and screen time

Hypothetically yes, presuming unlimited and unmatched market moving power. But of course, practically speaking, big entities didn't get big by not striving to ensure that their positions are entered in the most efficient manner
Are they really?!! Well.....if you say so
That's a vast separate topic for discussion . Lets just keep it short by defining them as levels which are considered significant because the market and the market participants make them so
Nice One!
Basically meant to say that at the risk of sounding repetitive, I still couldn't resist trotting out my 'worn out from overuse' response
Ah, Finally! Though from someone of your caliber, I expected this rejoinder to have been voiced earlier!!!

I deliberately mentioned this trade with the specific aim of pointing out the, extremely sensible and pertinent, market truism posted by BNFTrader a couple of posts prior! The market is not only an arena wherein various participants are vying for dominance but is effectively an arena of clash for dominance by different timeframes! Hence in the charts posted by you - what appears to be a major retracement and cause for consternation in that timeframe, could merely be a minor sideways price action blip on somebody else's radar on a different (higher) timeframe. That somebody assessed the upward trend to be still intact and acted accordingly (same confirmatory reasoning applied to my illustrated trade example, hence mentioned)
No, I am not calling the idea itself a fad. I am categorizing the tendency of any trader to put money at risk on a concept without having assessed it on its own merit, as akin to subscribing to a fad

As an aside - the comment regarding certifying somebody was wholly unnecessary (not to mention, being in dubious taste as well) as we are not discussing personalities but ideas/ concepts and I fully expect you to recant it

I suppose in such discussions, misunderstandings do tend to be an occupational hazard . Hence before any more occur, let me just summarize

You posted charts of situations/ market action wherein retail traders (supposedly) have been hung out to dry. You asked who did this? Why? And how a retail trader can avoid being chewed up in such situations?

On the point of who? and why? it appears that all are in common consensus

On the point of how to avoid being chewed up, you proposed a tactic which anticipates the addressed levels in these zones to hold up and accordingly enter the order without waiting for them to either hold up or to breakdown

I proposed that instead of tactics, the strategy of avoiding these zones of confusion is a better bet, until the market action resolves itself. Because at these significant levels a breach either side will lead to a maelstorm of triggered resting market orders which an average retail trader is ill equipped to handle by being handicapped in terms of firepower as well as superior tools (the most common of these being tick by tick data, direct market execution access etc) as opposed to the larger entities, for whom such situations are a favourite & fertile hunting grounds

Then you qualified your contention by citing experience and a linked video recommendation of the same by (presumably) famous traders. Well.... fair enough! Like I said 'if it works for you, then go for it' (there... I did it again
For other people, it is merely being advised that in keeping with dictates of prudence, it is better to test any idea before subscribing to it whole heartedly, no matter by whom it may have been recommended

Further,

My stated stance on the subject in simple terms is, that it may be difficult to salvage a doubtful strategy, no matter however much the tactics be tweaked! The way I look at it, a trader with superior skill ought to utilize it skilfully to avoid situations which require extensive use of that superior skill just to defend against being stoploss fodder. Instead the same skill is better utilized to screen for, and go for, the easiest and the most sure thing trades

I suppose such a viewpoint may not be quite glamorous or exciting, but then trading is not quite about glamour or (an overdose of excitement

P.S - This is not proposed as an argument pertaining to who is right or whose method is better. This is simply an alternate viewpoint which (hopefully) offers a viable option to tackle the illustrated situation. Am sure many more (even better) viewpoints/ innovative techniques may probably emerge down the line when additional members decide to chip in with their suggestions

Regards,

I think your conclusion is from a quick glance. I had read the whole thread , yes its a time consuming to read the whole. so I am trying to give their ideas in brief.



In above chart, In scenario-1 , Price breaks the resistance and small pullback happens . Here I feel comfortable to take long on BO of that minor resistance. Since the Risk/Reward looks good. And also its rational for Traders either big or small.

In scenario-2, Price breaks the resitance , I will wait for some minor resitance. If that not happens
its rational to be in sidelines and not to chase the flying price. This common for both big/small traders.

In this ways untested supp/res holds unfilled orders for both big/small traders.

But when comes to trade entry, IE if the price revisits the untested supp/res. We have to wait for some reversal or some minor pivots, then only we should enter the trade. I think you missed that point in that thread. (Yes, have dig lot to find that point ).

I am not saying this is 100% correct, but it has some merit while analysing liquidity pools.

since this thread is Food for Thought

Its now my turn to confuse:lol:

who is big money ?

1) FII

2) DII

3) HNI

4) ?

5) ?

I had listed some big money , that known to every traders. If anyone knows more than this please post .

Again this thread is losing the interests.

So I am giving my answer who is big money ? straightly.

Why the promoters of a stock is not considered as big money, like FII, DII, or HNI ?

They are the important big money, they have wed-lock with their stock to keep hold their stake with their company. where as DII, FII or HNI dont have wed-lock with stocks. But Promoters also trade their stock to see short term profit. If you see the share holding pattern in NSE website, It may change month over month. Which confirms promoters also trading.

Yes there was no need to drag the person put forward the idea into this
Defined Market structure and Strategy need to be changed only if they do not have an edge. Change in tactics can also improve efficiency of the method
It is working for me. That is why I suggested this. Who is preventing others from testing it. You can very well reject the Idea without testng and after testing
I have no doubts about the effectiveness of S/R in markets. I do believe Trading at established S/R gives a true edge. I know many people in the forum believes this. I just suggested a small tweak.
Ambiguity and uncertainty is the basic nature of markets. Dont want to waste time searching Holy Grail.
Every trading method requires a defined market structure. Strategy to trade the moves within this structure and tactics to execute trades.I believe price moves within a framework of S/R and have devised my strategy and tactics to suit this frame work. Those who trade a different framework may not find this useful.

Hi vijayanscbe

Simply put, BIG Money is anything/ anyone with the ability to move the market

It could even be the net result of many small entities acting in the same direction (whether by design or coincidence) in a particular timeframe for a particular duration. Singly, none of those entities may have the ability, but as a collective force the outcome is similar

Regards,

Hi Niranjanam

Read my previous post (#52) till you absolutely 'Get It'! The content as well as the intent!!!

Participation was on the premise of stated genuine desire to discuss viable alternate means to tackle posted situations

However if intent of reawakening this dead thread was to wax eloquent upon the perceived notion of a method being the most wondrous happenstance since sliced bread , then you're welcome to it

In any case, the recent market action may have given you adequate 'food for thought' to chew on by acquainting you with another market truism. That of 'The market conditions beget the methods employed and not the other way around'! 'Hot' markets pay scant regard to 'cherished' SR frameworks

Hope you weren't foolhardy enough to employ this wondrous method by placing trades in anticipation (and without confirmation) that support levels would hold!

Anyways, all the best with the trading and learning!

Sayonara

similar scenario??

Was it? I did not find any alternatives in your posts. May be I was not able to "absolutely 'Get It'! The content as well as the intent!!!" . sorry for that
No such beliefs. I was just showing a different and unconventional way to look at it
Given below is the price action of last three days. If you think " 'Hot' markets pay scant regard to 'cherished' SR frameworks", I cant help. Others can see how the game was played within option strikes.

Made some money doing such foolish acts. May be beginners luck.

Anyway I have neither time nor the energy to continue this discussion.No more postings from my side. Thanks for nip in the bud. Mods may close this thread.