Day Trading Stocks & Futures

I just checked the afternoon posts. There were some charts by vikas, showing the channel, but nothing said about Downtrend.

Anyway, all of us say a lot about markets here. Sometimes correct and sometimes wrong.
I looked at the pattern & my comment is - EOD charts and chart patterns look very meaningful. Post mortem chart analysis is pointless. Be it any time frame, if you look at a closed chart, you can always find meaningful patterns. The more artistic the trader is, the more patterns he can find.

There is a sharp fall in the last hour of todays market. So the mind will read it as - Market is trading in a narrow range in last two days, and once it broke Down that narrow channel, market came down further.

But, had if market went up sharply in the last one hour, the traders mind will read it as - Market is trading in a narrow range in last two days, and took support at the channel range and went up.

And, Had if market dint move either way - the traders mind will read it as, the beauty of market is "Previous days high/low levels are so powerful tools " and market will always respect those levels.

I mean, be it any kind of Trending or Zig Zag movement, we will find a meaningful pattern in it on EOD.

And on EOD chart, our mind generally ignores to identify failed signals and picks up only successful patterns. Let us take the same chart posted by you and tell me if I am wrong in taking these trades:

1) You drew two green lines as channel of last 2 days. Today, The channel was broken at opening range itself. So I will take a short trade with SL of lower green line/bottom channel line. What happened ? My SL was hit.

2) After my SL in first trade, And now, since the price went back in to channel, I have taken long trade with SL of Lower green line. What happened next ? My SL is hit again.

Now EOD it looks as a fantastic signal of short trade. But practically I lost 2 trades on same channel.
And, even if I had taken a third trade by selling it, what is the guarantee that my stop wont be hit before it fell down ?
So these are the problems and I must tell you very frankly that it takes years of time to understand the problems and mistakes we are making. Forget about solutions.
Try this for few months . . .

Trade only on one side . . . lets say you chose to be a bull and trade only Long setups
Once you choose your side and then willingly let go of all the great opportunities to trade the other side . . .
Believe me, once you do that, you will start seeing the short opportunities very clearly :)


Happy :)
 
still feel the upside pending for the expiry. todays trade is small ( after yesterdays backstabbing :D ) long in nifty calls and maruti.

the premiums of the 23rd may expiry options are unbelievable
Hello KK

What would the best BNF strikes for short straddle/straggle (23rd May)



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Raj232

Well-Known Member
Is the worst over for SBI? Brokerages see up to 30% upside post Q4 results
CLSA maintained its buy rating on SBI post March quarter results but raised its target price to Rs 390 from Rs 380 earlier.

Reacting to the results, Nomura maintained its buy rating on SBI and raised its target price to Rs 400 from Rs 375 earlier which translates into an upside of about 30 percent from Friday’s closing price of Rs 308.

Valuations are reasonable for SBI at 0.8x amid improvement in profitability. The performance was solid in Q4 and with improvement in asset quality is a positive sign, said the note.

In absolute terms, the gross NPA was down to Rs 1.72 lakh crore from Rs 1.88 lakh crore, while net NPA was at Rs 65,895 crore against Rs 80,944 crore, QoQ.
SBI might have formed a bottom.. upmove is pending since long :)
 

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