General Trading Chat

[Riskyman]

Dow cow back at support

 

[Smart_trade]

SmartTrade Sir

How to read market showed its hand (rally is over - thing) from chart ?? Is it simple candle or through any indicator or something else ?? I shorted below days low at that time which was at 8205, and price went below 8200 just for few mintutes and now I am holding my shorts in loss

And plz guide what is the meaning of "We are not getting V-SHape Reversal" ? I learned market can do anything and to stay open, Then how to make an assumption of what market may do and trade accordingly?

My approach so far...

Pran jaye par Stop loss na jaye.. I kept removing SL as price went higher and exited at 45 finally

Now banging head... :annoyed::annoyed:

Breakdown failure of morning low and market bouncing back....you overstayed in your short position.8209 or max 8218 you should be out of short positions...

Never mind, there will be many trades in future where you will make profits.


Smart_trade

Posting today's nifty Futures 3 min chart with swings marked.

1) We opened with gap down on bad news and in first 3 bars we made a bottom and a small rally started. This rally we have no idea where it will end...it could be at 8245-55 or 65 or higher.

2) It is my experience that when such gap down happens, the market after a rally goes back to the bottom and most likely breaks the bottom and makes a new bottom. But if the gap down is after sustained and steep fall lasting for 2-3 days or more then there is a chance of V shaped reversal. The downmove had just started on Friday so V shaped reversal on the first bottom was not expected but still we have to guard against that.

3) After the rally, the market broke the red line and that was the first indication that the rally is probably over. So the good place to short was below 8231 and we had a well defined 15 points stoploss at black line shown.

4) By this time the market had distributed for number of bars. If it was to give V shaped reversal, the market would have covered lots of distance in first few bars...that did not happen so V shaped reversal at this point was ruled out.

5) Market broke the low it made in first 3 bars and It was expected that the downmove will accelerate. But market came back above the pivot low it broke...this was certainly a bad news for bears. Bears should have taken some profits at round figure of 8200 and then balance short position should get covered at any of the blue dotted lines marked.

While shorting, our attempt should be to catch it as high as possible but after it turned down with clearly defined stops.

Smart_trade

 

[SwagatN]

Posting today's nifty Futures 3 min chart with swings marked.

Smart_trade

Thank you SmartTrade Sir, Nicely explained and nicely understood as well, Your charts give me confidence to trade. One question, does it mean, when the blue line is taken out near 8219 after a Higher VPL is made, frm that the trend changed to up and we should enter long ??

Here the trend changed when a higher VPL is made and previous VPH is taken out, But if a previous VPH is taken after a Lower VPL is formed, can we consider it as an uptrend or should we wait for a higher VPL to form first ?

 

[lemondew]

If someone has options 1 min data file kindly help out here

http://www.traderji.com/data-feeds/98933-options-eod-data.html#post1085007

 

[Smart_trade]

Thank you SmartTrade Sir, Nicely explained and nicely understood as well, Your charts give me confidence to trade. One question, does it mean, when the blue line is taken out near 8219 after a Higher VPL is made, frm that the trend changed to up and we should enter long ??

Here the trend changed when a higher VPL is made and previous VPH is taken out, But if a previous VPH is taken after a Lower VPL is formed, can we consider it as an uptrend or should we wait for a higher VPL to form first ?

Yes ,the short term trend changed at the blue dotted lines.

Previous VPH is takenout after higher VPL gives more confidence that the trend has changed and the higher bottom is in place. If previous VPH is taken out after lower VPL ( Meaning abscence of higher VPL), then the trend is likely changed...but for confirmation of trend change we need higher VPL and higher VPH sequence.

Smart_trade

 

[indianbank]

This is a news based market crash.... this kind is market crash will be a trap...

Normal bear market/crash comes without any sign .... it will be a sudden fall....

News creators waiting for huge Shorts to built up... then Good news will Squeeze all this Shorts with a very big upside move....
If everything goes correct then... u can see nifty up by 4-5% in single day within 2 weeks.

 

[SwagatN]

Yes ,the short term trend changed at the blue dotted lines.

Previous VPH is takenout after higher VPL gives more confidence that the trend has changed and the higher bottom is in place. If previous VPH is taken out after lower VPL ( Meaning abscence of higher VPL), then the trend is likely changed...but for confirmation of trend change we need higher VPL and higher VPH sequence.

Smart_trade

OK Got it.. :clap:

Few days back this VPH/VPL was explained by pratap sir on this thread, And I have practiced them on few charts. but on 5M timframe. Do you trade alwasy 3M for intraday as we see 5M chart, there will be few pivots which can not be seen on 5M but only on 3M. That means VPH-VPL markings will be different for 5M and 3M, and a 5M trader will see the trend change differently than a 3M trader.

And if you permits can I mark the VPL/VPH on NIFTY fut 3M chart and post them after market hour for my learning and practicing purpose ??

 

[lemondew]

Yeah true but in a tunnel or range bound day. Wont it break the VPh and comeback into the tunnel. Again it might break the VPL and again comeback.
How do you ascertain its going to trend.

Tlahuicole can also help since he took this uptrend today and has different systems in place for a tunnel day and trend day

 

[lemondew]

deleted post

 

[SwagatN]

Yeah true but in a tunnel or range bound day. Wont it break the VPh and comeback into the tunnel. Again it might break the VPL and again comeback.
How do you ascertain its going to trend.

Tlahuicole can also help since he took this uptrend today and has different systems in place for a tunnel day and trend day

If it takes VPH and VPL from both side but still goes no where then i guess it would be in an widening range..