Charts for the Day

Very nice thread you have sir.

Vivek

Hello Anilji

What's your usual holding period for positional and short term swing trades?

Thank you for your wonderful thread.

Swing trades usually run for 3-5 days and positional weeks to months...

For short term positions i am more of quick to part book and trail or part book and exit at some pre determined S/R zone coming in...

For positional positions, i part book and rest trail with SL...no exit till SL triggers...

Apart from that i am working on additions front too..previously i used to get in full many times when stock triggers buy for me...Right now analysing past few years trades to have step wise entries...Like entering smaller positions at trigger and then adding another at 2% above and adding some more if retest opportunity arises...

This helps if stock goes sideways after entry. Especially if you are adding remaining qty after it moves around 2% and move SL near or to BE point it would make it a free trade. Good work.

I see that you mostly post EOD charts. Do you use EOD only for your swing or use smaller TFs?

If i am available to screen i try to take entry in lower timeframe..sometimes it may be 5min charts but mostly its hourly...else i take trade near to EOD...Advantage with intraday entry is, suppose there is a breakout in stock in intraday you get good bargain point but if one wait till EOD then need to spend another 1-2% higher...But i never go into stock at EOD if stock is already up by 4.5-5% the same day...

For entry near 50/200 SMA if am taking plain close above entries i wait till EOD...

Sir, How do u approach breakouts if they have already moved higher significantly (4%-5%) by EOD. Sometimes there is a pullback/re-test giving a chance to re-enter but sometimes it keeps moving away further which increases stop loss margin.

thanks

I will also add one more query, one what time frame do you define SL and trail?
Also part profit booking at what R?

Vivek

Yes this is a problem and thats why i never enter at EOD if stock is already up by 4-5%... Just wait for pullbacks or let it consolidate for few bars to re-enter...

There is a risk of stock getting runaway and one would miss entry..but thats the part of game...One should have well defined plan what to do and what to avoid...Market is so enticing that we try to bend the rules and the same trade hurts more...

Now, why i avoid stocks if run up has been 4-5%...simply as we know we are buying breakout ...it means stock was under consolidation and we are buying consolidation breakout...so one should enter in the vicinity of breakout zone and not far from it...as it gives time (Proper SL) to assess the trade...But if we have enter 5% above breakout zones then SL becomes unaffordable and also placing of stoploss at reasonable and justified levels is not in the picture...

Regarding stoploss placing i already commented here in this thread...My Stoploss for initial 2-3 days is 2ATR or so...and If stock is up by 5-6ATR then part booking is must...I mean if there is a ATR expansion that is much visible...And this ATR expansion is in short time then part book is must...

I try to part book at confluence of these levels ATR, S/R zones if any....monthly high-low nearby....

After initial days of trade, i trail it using moving average only...mostly 50 SMA for intermediate timeframe i prefer...