Determining direction of Markets?

[Placebo]

Hi aw10. I think you misunderstood what i said. I do not even think about predicting the low or high.

Let me give you some insight on how i trade. For the sake of this discussion , lets say that price is falling down and then the price stalls. This stalling of prices is the place where i enter my long if all my criteria has been in place. This congestion zone is my entry point which in my view based on my analysis of charts which would be the beginning of accumulation. On the other hand this could be re-distribution.Nevertheless i use a wide initial stop to not be out of a good position easily if this is accumulation.

Now when price moves into the next phase of Mark Up or Break out everyone usually expects to enter on a pullback. While this pullback is beneficial it is also a very rare occurrence in the intraday time frames of 1hr and above. And when a pullback occurs it usually takes out my trailing stop. Now my trailing stop is nothing but a mathematical function which tells me that if price touches "x" then exit. So i need not wait for the close of the bar. My concern then is to re-open a long position if the momentum is still in place. If my trailing is not taken out then i increase my position size because i am in profit.But i may or may not re-open a position after my trailing stop is hit at higher prices.

This approach suits my style of trading and hence i suggest it on public forums but a lot of preparation is required for this and although i am an intraday trader there are days when i do not trade because my criteria were not met and when they are met i try to make the most out of it.

Cheers and Happy Trading

 

[AW10]

lnangia, I fully see your point and your approach of using VSA, volume etc to find the right entry.. just at the start of new trend. Not sure if this is how you started in trading or you have improved your approach over a period of time.

Only point I wanted to highlight was - buy-low, sell- high is one approach. and additional approach that can still give profit is buy-high and sell-higher. For Trend follower, high-higher or low-lower logic works well.

So as a beginner, they need to make mindset that buying high is also ok as long as there are signs telling that mkt will go higher..

Hope reader of this thread are getting some additional viewpoints from our posts.

Happy trading

 

[prasham]

Hope reader of this thread are getting some additional viewpoints from our posts.

Happy trading

Definitely :thumb:

 

[Capricorn]

I understand your point but one thing that I don't understand is that what happens if you reveal all your secrets to me? Do you loose on any thing? To answer seems to be a BIG NO because in this market your loss isn't my profit or vice versa. On the other hand novice traders like me would get a quick start and we shall loose less time and money in trying things that aren't useful at all.

Like AW10 said in his above post PCR isn't a very good indicator. I would blindly follow it as I think he is quite a learned trader. Now since yesterday evening I have read and read and read an article on PCR from investopedia. I have spent some time on it but now as AW10 has enlightened me about PCR, I would let it go without trying it in the market which would save me time as well as money.

Honestly I am not asking you to post your trading secrets. Today trading in Indian Stock Market has become very clumsy for novice traders like me as there are lot many indicators and not many people fully understand potential of these indicators. Hence often novice traders get trapped using wrong indicators or using a good indicator wrongly.

A simple line of advice that "X" indicator is good should be enough for most of us. I would learn about it on my own but a hint from experienced guys could save us from lot of troubles as I mentioned above

Here is a pivot point tutorial to get started. I hope it helps.

http://rapidshare.com/files/361502853/pivotpoint.php.htm.html

 

[Placebo]

Hi aw10. I have developed this approach with time and a lot of hindsight analysis and not to forget the urge to get better day by day. I do agree with you that buying higher and selling even higher is another way to go about it. But this is something where basic and pure Technical Analysis comes into use. And i need to work on that.

You wouldn't believe me if i told you that i have not read even one book on Technical Analysis. The only thing i remember/know about technical analysis is a seminar i had attended which was conducted by Mr. Kiran Jadhav which spoke about mumbo jumbo patterns/indicators and their effectiveness.

But i have kept an open mind and have started reading the work of Steve Nison and Gregory L Morris who have done some great work in the field of CandleStick Patterns and gradually with time i will incorporate it into my trading plan and feel comfortable with buying higher and selling even higher.

Cheers And Happy Trading

 

[prasham]

Can one rely on VIX to get direction of markets?

 

[DanPickUp]

----------------------------------------------------------

 

[prasham]

Here is a pivot point tutorial to get started. I hope it helps.

http://rapidshare.com/files/361502853/pivotpoint.php.htm.html

Thanks for the link. Can someone please check the Pivot calculator on the below page...

http://pivottrading.awardspace.co.uk/pivot/pivot/simplePivot.html

It is accurate? Can one use it for trading in options?

 

[DanPickUp]

--------------------------------------------------------

 

[prasham]

Real option traders do not much care about that stuff. They mostly have no clue where market is heading to. Why ?

DanPickUp