chronicles of PA day trader

[primitivetrader]

Hi all,

i am a full time PA day trader. primarily trading nf on 3 minute chart. this thread i will be using as journal/ share my thoughts about day trading.

 

[primitivetrader]

four most imp things for me in technical analysis is knowing about:
1) price structure using...
2) candlesticks and understanding ...
3) momentum which helps in locating...
4) support and resistance

i use one bar swing to define price structure. its a simple one bar hh hl or lh ll . one can use 1 bar /2bar or 3 bar swing to define price structure as made popular by gann. its very effective if used all 3 one can have ready understanding or all 3 trends on single time frame.

 

[primitivetrader]

odd enhancers (OE)-
i have taken this term OE from OTA. what are the odds in our favor before placing a trade. I look for couple of things will keep adding them.
1) how price has reached the particular S/R. is it an impulsive move or an over lapping move? this tells the strength of the move to S/R.
2) is there lots of momentum before S/R either on the upside or down tht creates S/R. this tells us preceding strength.
3) candlesticks body and wick analysis, who is in control bulls or bears with price reaching to S/R. broadly there are only two types of candlesticks trend candlesticks and indecision candles.
4) see the probable reward. do we have major resistance in care of long just above the entry or a clean passage. if resistance is there avoid the trade.

 

[primitivetrader]

this is how i set my chart. dots are 2 bar swing and zig zag is 1 bar swing

 

[primitivetrader]

 

[primitivetrader]

 

[primitivetrader]

Congestion- very interesting concept for me. i like it very much. its so easy yet powerful way to find out S/R zone. when 3 bar continuously close within the range (H-L) of previous bar, we have congestion. to put S/R zone simply take the highest close and lowest close of these 3 bars and draw horizontal zone and we have congestion zone. in previous chart i have drawn it

 

[primitivetrader]

 

[primitivetrader]

subscribed to tick data. well not exactly tick data but 1 sec snapshot but better than time based data. 50 tick chart couple of good opportunities. trend can be defined in many ways one of the best is true trend. with it one can most of time hop strong momentum.

 

[primitivetrader]