An Excellent Collection of ST's Posts.
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VWAP bands is not my strategy. It's concept,AFLs all developed by Pratap.So he deserves the thanks,not me. I just use that to make money in my trading.
If you are talking about VWAP gap strategy,then it is my strategy !I was trading it long before.Its base is simple logic and observation and knowing which group of traders is getting squeezed and what their next action will be.
ST
If you are talking about VWAP gap strategy,then it is my strategy !I was trading it long before.Its base is simple logic and observation and knowing which group of traders is getting squeezed and what their next action will be.
ST
Last edited:
Source : http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-3.html#post540250
They say that trend is your friend but that statement needs a qualification that it is your friend as long as it is not about to end.......how does one know that the trend is strong ?
I use following critaria to judge how strong the trend is...and when it is about to give explosive move. The technique I follow is based on Trends knowledge from William McLaren and also from Saint....All credit to them, I just apply that knowledge to the markets....
See those magenta colour lines on the chart ? Those are the lines showing gaps in the earlier top and the reaction bottom after breaking the tops....these gaps show that the trend is strong and about to blow off.. .... After such gaps the trend accelerates.....you can see that on any chart, any time frame......if coupled with other techniques, it gives great confidence to hold the positions, add and wait till the trend is about to end.....
Smart_trade
Adi,
Trending and sideways phases are cyclic in any market and after a trending phase expect a sideways phase and after a sideways phase expect a trending phase.....if there is anything certain in the markets ...it is this.
Traders make money in trending phase and give it back in the sideways phase....sometimes they loose more in sideways phase. Every trader has to understand how he is going to negotiate the sideways phase so that he makes some money in it or at least preserve what he has made in a trend and again ride the trend when the market starts trending again...
Traders handle sideways phase in different ways depending on what he is comfortable with ...various ways of handling sideways phase are as under :
1) If you are a range trader, trade the extremes of sideways range....buy near the bottom of the range and sell near the top....
2) Decrease your volumes in sideways phase and increase back to normal volumes when trend starts.
3) Trade on sideways market indicators, oscillators, Bollinger bands extremes etc
4) Totally stay away in sideways phase and trade only trending phases....
How do we know that we are in sideways markets ? The charts will indicate that. I have taken an example of Nifty Futures 5 min chart.....we had a nice downtrend till point A , then we had an upmove upto point B.....the first indication of sideways market came when at point C market was unable to take out point B...then D,E,F,G all sideways moves till we get a breakdown of the range.....
So in this range either trade the extremes or just stay out and dont loose your capital and energy trading sideways markets......get on to trends when they start again.....
Smart_trade
Referring to the gap between the Pivot high market breaks to the upside and the Pivot low or reaction low after the high is broken. If there is no such gap and market breaks the top,and reacts and gets into the top it broke...that trend is called a creeping trend which is weak and as a general rule indicates that market is near its reversal ( there are certain exceptions though....)
In a strong trend which is about to accelerate you will see such gaps...
Please see the chart I posted...there I have shown 2 such gaps .....
This is different concept from normal opening gap which we normally refer to as gap.
Smart_trade
Markets routinely go into trending and sideways phases and see any chart on any timeframe, you will see periods of trending moves and sideways moves. Trend traders trading breakouts/breakdowns make money in trending phase ...but give back large part of that ( sometimes even more than what is made in trends )in sideways phase. Most of us always wonder whether there is any way to stay out of sideways moves....and trade only trending moves....as a breakout trader when a trader takes a position on breakout/breakdown he wants the market to move in direction of his trade...and move quickly. He will get frustrated if he sees market going nowhere and that is where he is prone to make plenty of trading mistakes.......
I have posted a Nifty futures 5 min chart for last 3 days. Here we see periods of trends and sideways moves....can we know that we are likely to be in sideways phase ? Yes it is possible.......
Let me explain....when you have points A and B defined and market does not break these two levels it is in a sideways phase.....so at C, D, E .....it is sideways so it is a no trade zone for breakout trader...a range trader can sell at the top end of the range and buy at the bottom end of the range.
I have marked No Trade zones and Trade zones.....you will see that if you trade only trade zones, you will catch 75-80 % of the vertical distance which the market has travelled in last 3 days. And the beauty is you have been totally out from sideways phase and thus not getting into those frustrating trades which give back the profits you earned in trending phases.
Anybody can trade a trend.....but if one understands when not to trade, that will make him an expert trader and separate him from the normal "must trade all the times" type of traders.........
Smart_trade
__________________
What I am trying to do is once market defines its A and B levels, quickly recognise that unless these levels are broken either on upside for uptrend or on downside for downward trend, the market is going to be in choppy sideways phase and trying to avoid taking trades in this phase which are small and frustrating as market is going nowhere.....
The real money is made when market leaves its sideways area and moves into a new territory and I am waiting to trade this phase.....
ST
Very correct ,LVG...taking trades in the direction of higher timeframe trend is a sure way of staying out of wrong /choppy trades . The longer timeframe trend was down.....so we take only short side trades.....in sideways moves, market could be consolidating or further distributing. We wait for it to speak as it comes out of sideways range and gets into a trend.There are few techniques which will indicate whether sideways phase is a preparation for reversal or further downtrends continuing, we will talk about those in due course. As per these techniques, it was very clear that the market was to trend further down....but we stay out of sideways phase where chances of whipsaws are much more and get in the trade once market clears the sideways zone.
Great going....
Smart_trade
They say that trend is your friend but that statement needs a qualification that it is your friend as long as it is not about to end.......how does one know that the trend is strong ?
I use following critaria to judge how strong the trend is...and when it is about to give explosive move. The technique I follow is based on Trends knowledge from William McLaren and also from Saint....All credit to them, I just apply that knowledge to the markets....
See those magenta colour lines on the chart ? Those are the lines showing gaps in the earlier top and the reaction bottom after breaking the tops....these gaps show that the trend is strong and about to blow off.. .... After such gaps the trend accelerates.....you can see that on any chart, any time frame......if coupled with other techniques, it gives great confidence to hold the positions, add and wait till the trend is about to end.....
Smart_trade
Adi,
Trending and sideways phases are cyclic in any market and after a trending phase expect a sideways phase and after a sideways phase expect a trending phase.....if there is anything certain in the markets ...it is this.
Traders make money in trending phase and give it back in the sideways phase....sometimes they loose more in sideways phase. Every trader has to understand how he is going to negotiate the sideways phase so that he makes some money in it or at least preserve what he has made in a trend and again ride the trend when the market starts trending again...
Traders handle sideways phase in different ways depending on what he is comfortable with ...various ways of handling sideways phase are as under :
1) If you are a range trader, trade the extremes of sideways range....buy near the bottom of the range and sell near the top....
2) Decrease your volumes in sideways phase and increase back to normal volumes when trend starts.
3) Trade on sideways market indicators, oscillators, Bollinger bands extremes etc
4) Totally stay away in sideways phase and trade only trending phases....
How do we know that we are in sideways markets ? The charts will indicate that. I have taken an example of Nifty Futures 5 min chart.....we had a nice downtrend till point A , then we had an upmove upto point B.....the first indication of sideways market came when at point C market was unable to take out point B...then D,E,F,G all sideways moves till we get a breakdown of the range.....
So in this range either trade the extremes or just stay out and dont loose your capital and energy trading sideways markets......get on to trends when they start again.....
Smart_trade
Referring to the gap between the Pivot high market breaks to the upside and the Pivot low or reaction low after the high is broken. If there is no such gap and market breaks the top,and reacts and gets into the top it broke...that trend is called a creeping trend which is weak and as a general rule indicates that market is near its reversal ( there are certain exceptions though....)
In a strong trend which is about to accelerate you will see such gaps...
Please see the chart I posted...there I have shown 2 such gaps .....
This is different concept from normal opening gap which we normally refer to as gap.
Smart_trade
Markets routinely go into trending and sideways phases and see any chart on any timeframe, you will see periods of trending moves and sideways moves. Trend traders trading breakouts/breakdowns make money in trending phase ...but give back large part of that ( sometimes even more than what is made in trends )in sideways phase. Most of us always wonder whether there is any way to stay out of sideways moves....and trade only trending moves....as a breakout trader when a trader takes a position on breakout/breakdown he wants the market to move in direction of his trade...and move quickly. He will get frustrated if he sees market going nowhere and that is where he is prone to make plenty of trading mistakes.......
I have posted a Nifty futures 5 min chart for last 3 days. Here we see periods of trends and sideways moves....can we know that we are likely to be in sideways phase ? Yes it is possible.......
Let me explain....when you have points A and B defined and market does not break these two levels it is in a sideways phase.....so at C, D, E .....it is sideways so it is a no trade zone for breakout trader...a range trader can sell at the top end of the range and buy at the bottom end of the range.
I have marked No Trade zones and Trade zones.....you will see that if you trade only trade zones, you will catch 75-80 % of the vertical distance which the market has travelled in last 3 days. And the beauty is you have been totally out from sideways phase and thus not getting into those frustrating trades which give back the profits you earned in trending phases.
Anybody can trade a trend.....but if one understands when not to trade, that will make him an expert trader and separate him from the normal "must trade all the times" type of traders.........
Smart_trade
__________________
What I am trying to do is once market defines its A and B levels, quickly recognise that unless these levels are broken either on upside for uptrend or on downside for downward trend, the market is going to be in choppy sideways phase and trying to avoid taking trades in this phase which are small and frustrating as market is going nowhere.....
The real money is made when market leaves its sideways area and moves into a new territory and I am waiting to trade this phase.....
ST
Very correct ,LVG...taking trades in the direction of higher timeframe trend is a sure way of staying out of wrong /choppy trades . The longer timeframe trend was down.....so we take only short side trades.....in sideways moves, market could be consolidating or further distributing. We wait for it to speak as it comes out of sideways range and gets into a trend.There are few techniques which will indicate whether sideways phase is a preparation for reversal or further downtrends continuing, we will talk about those in due course. As per these techniques, it was very clear that the market was to trend further down....but we stay out of sideways phase where chances of whipsaws are much more and get in the trade once market clears the sideways zone.
Great going....
Smart_trade
Source : http://www.traderji.com/day-trading/72827-thoughts-day-swing-trading-part-2-a-4.html#post741007
Posting a 5 min Nifty Futures chart with TDST lines marked on it. When the market was in uptrend, the blue resistance lines were getting taken out, red support lines were successively higher.
When the trend is down, the reverse process takes place, market finds it difficult to break the successively lower blue resistance lines and it breaks successively lower red support lines.
Today also nifty futures found it difficult to cross blue resistance lines....but broke red support line and then came a free fall.
At around 3:00 the VWAP difference indicated that bears are in full control and bulls getting squeezed.....and that continued till the end and the bears really exploited the advantage they had over the trapped bulls.....and in the end there was a stampede of trapped bulls giving good prices for bears to cover their short positions.
Smart_trade
Posting a 5 min Nifty Futures chart with TDST lines marked on it. When the market was in uptrend, the blue resistance lines were getting taken out, red support lines were successively higher.
When the trend is down, the reverse process takes place, market finds it difficult to break the successively lower blue resistance lines and it breaks successively lower red support lines.
Today also nifty futures found it difficult to cross blue resistance lines....but broke red support line and then came a free fall.
At around 3:00 the VWAP difference indicated that bears are in full control and bulls getting squeezed.....and that continued till the end and the bears really exploited the advantage they had over the trapped bulls.....and in the end there was a stampede of trapped bulls giving good prices for bears to cover their short positions.
Smart_trade
Da
If there is a long wick bar (eg pinbar) that has formed on the daily at previous vph /resistance but was followed by bearish bars consecutively(each close is lower) then we would have missed the trade looking for virtual high
else immediately after the pinbar can we go to lower time frames and look out for close of a bar in the pinbar's range for entry
regards
yak
If there is a long wick bar (eg pinbar) that has formed on the daily at previous vph /resistance but was followed by bearish bars consecutively(each close is lower) then we would have missed the trade looking for virtual high
else immediately after the pinbar can we go to lower time frames and look out for close of a bar in the pinbar's range for entry
regards
yak
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