Laid back type of trading

rip07

Well-Known Member
#12
If you notice in above charts, only in last 3-4 months we got 2000 pts in 2 trades. Again this pattern is not gonna repeat always like this, but we can observe and apply it in different markets as well.

This will let us do trading in laid back manner with ample time to enter and exit. Now if we still want more (average trader to very successful trader), we need to go little deeper in trade management and risk management.

How and when to add more in our current position and how to move Stop-loss. Later we gonna see this part, vacation time for me. Enjoy! :)

Thanks
rip07
 

DSM

Well-Known Member
#13
Rip,

My observations on the trendline you have drawn. How would someone draw a perfect trendline - other than in hindsight? In live and real-time, there would be many instances when the trendline would have been breached. I have drawn three breaks of the trendline on the same chart... there are more... As in perfect charts drawn post facto, these kind of interpretations mislead traders and take them on a rosy path oblivious to reality. Similar case with most indicators, RSI, MACD, Moving Averages etc. etc... Just my view.



It is a daily chart of Bank Nifty, if draw a simple trend line from one point in lower side of left part to other point in upper side of right part, we find that it is uptrend and bank nifty hardly breached this line during this time period. Those touching points on trend line can be use for entry with tight stop-loss.



Thanks
rip07
 

rip07

Well-Known Member
#14
Dear DSM, very nice observation and very true that it is very obvious and easy to analyse in hindsight. In real time, it is very difficult to take decision, but we need to look at hindsight and take calculated risk (risk-reward).

As you have drawn these red lines, all are possible scenarios. If price breach the trend-line, we enter into sideways market as we can see in 4 hours chart. And in sideways market we can see patterns as well. We should avoid such kind of market (sideways) as we are talking about relax trading, we are looking for trend only, as I tried in 4 hours chart.

But I like your observations. Thanks!!

Thanks
rip07


Rip,

My observations on the trendline you have drawn. How would someone draw a perfect trendline - other than in hindsight? In live and real-time, there would be many instances when the trendline would have been breached. I have drawn three breaks of the trendline on the same chart... there are more... As in perfect charts drawn post facto, these kind of interpretations mislead traders and take them on a rosy path oblivious to reality. Similar case with most indicators, RSI, MACD, Moving Averages etc. etc... Just my view.

 

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