Daytrading

lohiya · #21 10th August 2006, 09:25 AM

Its sad that a thread on day trading has witnessed lack of intersest among members.

As for the very fundamental(of day trading technicals) question put by prakash, i'd like to say that the indicators have to be tweaked for diffr. types of scripts. I am yet to find general rules 4 the application of indicators. for 10 min intraday data, i rely on candlestick patterns, suuprt/resistance levels, and of course the trendlines.

Senior exp members pls post notes on using the most trusted indicators for intraday trading.

regards,
lohiya.

sukruthavijay · #22 27th September 2006, 08:12 PM

Thanks for useful information and I look forword for many more from you

Nasir · #23 27th September 2006, 10:36 PM

My 2 cents on daytrading.
The reaction time in daytrading is very very short; you need to react fast. If you are using too many indicators and comparing and confirming them, you can not react fast enough. Therefore use just one indicator and understand it thoroughly.
Now, I will outline a trading system ( not mine ) that I have used successfully.
You must trade with the trend. Use 50 period Simple Mov. Avg. to determine trend. If it is sloping upward trade from the long side and vice versa. If it is flat, stay out.
I use 10 and 20 period Expoential Mov. Avg. for entry. Wait for price to move between these avg., then enter the trade. You can use candlestick to refine your entry. Doji, hammer, piercing pattern for long entries; doji, shooting star and dark cloud cover for short entry. After you have used this technique for about 3 entries, you may want to wait for a larger pullback to the 50 SMA itself and enter the trade there. Quite often the trend is so strong that it will not pull back to 10-20 zone. That's where I use woodie's CCI pattern called " Zero line reject"; it will put you in the trade if you are not getting the pull back to 10-20 zone.
Check out woodiescciclub.com for explanation of ZLR.
To gain an early entry, you may have to look at classic chart pattern. I have found the rectangle to be the most reliable. You can use breakout from rectangle to get an early edge.
Confine yourself to 2 or 3 markets. It is ideal for index futures. You can use it on some highly liquid stocks with fair volatility.
I hope I have been of some help. If you want to use this system, paper trade it for a while and see if it meets your need; if it does not; well through it out, it didn't cost you anything anyway.
Happy trading,
Nasir

Nasir · #24 27th September 2006, 10:55 PM

Hi everyone,
I apologize for one glaring omission. ALWAYS use stop loss (an actual one, not mental). It will usually be just outside the 20 EMA.
Nasir

hmp · #25 27th September 2006, 11:49 PM

hi nasir thanks for ur trading system. so many indicators to follow in single daytrading it seems difficult!
regards
hmp

anilbalaji11 · #26 2nd May 2007, 11:59 AM

Thanks, shrees for your valuable information

sudhakarsap · #27 2nd May 2007, 02:54 PM

Hi Shri

Nice article ., and useful info , thanks

Best regards
Sudhakara

sharantaka · #28 11th May 2007, 01:31 PM

Quote:

Originally Posted by Nasir

My 2 cents on daytrading.
The reaction time in daytrading is very very short; you need to react fast. If you are using too many indicators and comparing and confirming them, you can not react fast enough. Therefore use just one indicator and understand it thoroughly.
Now, I will outline a trading system ( not mine ) that I have used successfully.
You must trade with the trend. Use 50 period Simple Mov. Avg. to determine trend. If it is sloping upward trade from the long side and vice versa. If it is flat, stay out.
I use 10 and 20 period Expoential Mov. Avg. for entry. Wait for price to move between these avg., then enter the trade. You can use candlestick to refine your entry. Doji, hammer, piercing pattern for long entries; doji, shooting star and dark cloud cover for short entry. After you have used this technique for about 3 entries, you may want to wait for a larger pullback to the 50 SMA itself and enter the trade there. Quite often the trend is so strong that it will not pull back to 10-20 zone. That's where I use woodie's CCI pattern called " Zero line reject"; it will put you in the trade if you are not getting the pull back to 10-20 zone.
Check out woodiescciclub.com for explanation of ZLR.
To gain an early entry, you may have to look at classic chart pattern. I have found the rectangle to be the most reliable. You can use breakout from rectangle to get an early edge.
Confine yourself to 2 or 3 markets. It is ideal for index futures. You can use it on some highly liquid stocks with fair volatility.
I hope I have been of some help. If you want to use this system, paper trade it for a while and see if it meets your need; if it does not; well through it out, it didn't cost you anything anyway.
Happy trading,
Nasir

Hello Nasir,
Thanks for a very informative post on day trading and a free trading system thrown in. Can you post one sample chart, even an old one is good enough, wherein you have actually used your trading system, with your trade entry, stop loss and trade exit marked on the chart.
Thanks in advance
sharantaka

timtomlee · #29 15th May 2007, 11:06 PM

Use combination of Pivot table and slow stochastics for better results.

Regards.

surendiran · #30 15th July 2007, 05:40 PM

hi shrees thank you for ur tips iam also from chennai will like to talk to u if possible

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