General Trading Chat

[Krishan86]

ST Sir,
Can you please recommend some good books on:
1. "Volume Analysis"
2. "Price Action" based Trading
3. "Stochastic Indicator"

 

[TradeJoker]

HAPPY GURU NANAK JI JAYANTI[/B[/img]

Same thoughts

https://en.m.wikipedia.org/wiki/Chattampi_Swamikal
https://en.m.wikipedia.org/wiki/Sree_Narayana_Guru

 

[Smart_trade]

ST Sir,
Can you please recommend some good books on:
1. "Volume Analysis"
2. "Price Action" based Trading
3. "Stochastic Indicator"

This information is scattered in so many books,articles,interviews. I donot trade price action as given in Al Brookes or YTC. I read both but I was not successful in understanding and trading with those methods, must be my shortcoming.

My price action is understanding each bar and asking whether it gives some information on supply/demand and how to use this information in trading.That to me is very important than some rules like "do this when this happens" as the market will do different things everytime.

Smart_trade

 

[wisp]

Same thoughts

https://en.m.wikipedia.org/wiki/Chattampi_Swamikal
https://en.m.wikipedia.org/wiki/Sree_Narayana_Guru

Thanks to these men, Kerala transformed from what Vivekananda called a Lunatic Asylum into today's Progressive Land.

 

[Smart_trade]

In my thread "Ideas on day/swing trading" I have discussed many trading ideas.One of the ideas discussed there is my favourite...I have learnt it from Saint and the credit goes to him.We called it Virtual High/low.

I have done some thinking on this pattern and I find that it is a high success rate pattern with a solid price logic.This pattern is a form of Test pattern.

NF is in downtrend, it takes a rally and makes rally top at A. Then the decline starts and the market goes down.The market gathers strength at the decline bottom and stages another rally and goes to B....now observe carefully.Bar marked B is a bullish candle and it closes in the wick or tail area of bar A....this means that the bulls tried their best to take the market up and break top A but they lost their power and could not push it up any further. This is virtual high and when low of bar B is cracked, it means the market is reversing its direction....so we sell short.

The same pattern happened at the bottom. Look at C and D and there reversal was indicated. This gives a very high RR trade and one can catch the reversal at almost high/low point.

In my next post I will post this pattern worked in NF yesterday...

These are reversal patterns so make sure that there is some price move before a reversal is likely and dont try to fit this pattern to every alternate bar...also see to it that A,B are at some distance and not consecutive bars.

Smart_trade

 

[Smart_trade]

Look at A,A' and B and see how at a resistance zone a reversal is indicated.B is closing in the wick/tail of A and A' and triggering virtual high reversal once low of B is cracked.

Smart_trade

 

[patrader]

ST sir why didnt we short A' low ?

 

[Smart_trade]

ST sir why didnt we short A' low ?

Because at A' this pattern did not happen. A' bar did not close in the wick/tail of A.The bar had to close in the wick and at the same time should not break top of A.....if it breaks the top,then it is a case of Rejection and Failure.

It happened at B as B closed in the wick/tail of A and A'

ST

 

[patrader]

Because at A' this pattern did not happen. A' bar did not close in the wick/tail of A.The bar had to close in the wick and at the same time should not break top of A.....if it breaks the top,then it is a case of Rejection and Failure.

It happened at B as B closed in the wick/tail of A and A'

ST

Thank you ST sir.
Would you please explain your thought process/logic behind whant difference a bar closing inside thd wick makes from a bar closing below the wick?

 

[Smart_trade]

Thank you ST sir.
Would you please explain your thought process/logic behind whant difference a bar closing inside thd wick makes from a bar closing below the wick?

The bar closing inside the wick is very important. It shows that the bulls failed to break the top but by closing inside the wick, bulls are giving a false impression of strength as it closed above A bars close (upclose for faking strength )...so in next bar or max in subsequent 2 bars the top has to crack or if the bottom of the bar is cracked that means that the bluff of strength by the bulls is recognised and the bears will now pounce on them for a kill...

We get atleast 10-15 such trades in a month and that is enough for making a good living from trading.

Smart_trade