Hello everyone,
Note to moderator: If you find this thread inappropriate for this topic then kindly move it to where it belongs or tell me and I'll repost it. Thanks for this wonderful forum - moderators and members _/\_
I am new to trading. Started last month and just recently came across this forum. Please give me feedback on my thought process (where it's right and where it's wrong).
1. I am attracted to scalping aspect of trading. My current understanding is that Price Action is an important thing to learn. I read a couple of books (AI Brooks and another one that I don't remember the name of). It gave me a basic feel of the markets. I'll read Brooks again.
2. Next thing I got very curious about was Market Depth. I looked at the charts but somehow looking just at the prices and the orders gave me a much more visceral feel for the markets.
3. Currently, I am looking towards a strategy to scalp just seeing the price and market depth (level 2 data). I can observe prices moving in very short ranges between two price levels. And when those price levels are broken with high volumes then price moves further on that side rapidly. I saw a potential for scalps (less than 4 Nifty points) in this type of strategy.
4. On breakouts, I saw that they are accompanied with high volumes. Is this always true? Also, if there is sudden high volume then how to determine the probability of a breakout?
Also, a physics based approach (Please correct me if its the wrong way to think about the markets). I was looking at 5 mins Nifty candlestick charts with volume below it. I noticed that with some candles, the volume accompanied builds up slowly. For ex: its 2 mins in the candle and its not a lot as compared to neighbouring candles. In some other candles, the velocity or (Volume/time) is very high - more volume generated in 1 min than a 5 mins candle just nearby it. What are the scenarios along with their probabilities or more aptly what is a good way to analyse all this? Is there a concept related to the velocity of volume?
5. I want to scalp nifty futures for 3 points and have a stop loss of 0.1. My brokerage calculator tells me that I need at least 2 points to breakeven with all the trade related charges etc. My understanding for taking profit of 3 points comes from looking at market depth. At certain times, some price levels are strong as there are a lot of orders on that price. So I plan to put my trade just below the price (when going Short) for ex: if 8770 is a price where there are a lot orders then I'll place my trade at the closest price I can get below 8870, like 8869.90 with stop loss of 8870.10 and profit target of 8867.
6. I saw volume footprint charts and quantity traded on price levels on the forex forums but my platform doesn't have them. How can I get them? My understanding is that key levels could be found out where most volume of trades have happened and that information can subsequently be used for entries and exits.
7. How can I get the level 3 data for NSE? This is absolutely critical for me as the most understanding I've developed about the markets is by looking at level 2 data but its only 5 Ask/Bid. More the merrier.
8. I tried looking at technical indicators like stochastic etc. They just don't make sense to me. Should I put more effort in understanding them? Or should I just continue looking at order flow and volume?
9. Also, scalping 0.3-1 points on Nifty seems very doable. Is there a way to avoid charges so that kind of scalping can be profitable? I figured that if I know this then everyone in the market knows this too and people don't do it cos of the charges involved. Am I missing something here?
10. What's the role of order flow and volume when it comes to higher timeframes in comparison to the shorter timeframes? Does it change?
11. How can I execute my orders quickly? For example I want to buy 2 lots of Nifty futures at a price. Is there a platform in India like MD Trader where I can just click next to a price on market depth and my order gets completed? Also if I can shuffle my lots across prices of market depth using just mouse? Even adding/removing lots at market price with keyboard strokes would be handy.
I have a mind that's naturally inclined towards process rather than outcome. Please suggest on where I should focus more and where I should focus less? I will start trading this week and will keep updating how I did and what I learned. This venture is purely learning based.
Thank you,
Pratyahara
Note to moderator: If you find this thread inappropriate for this topic then kindly move it to where it belongs or tell me and I'll repost it. Thanks for this wonderful forum - moderators and members _/\_
I am new to trading. Started last month and just recently came across this forum. Please give me feedback on my thought process (where it's right and where it's wrong).
1. I am attracted to scalping aspect of trading. My current understanding is that Price Action is an important thing to learn. I read a couple of books (AI Brooks and another one that I don't remember the name of). It gave me a basic feel of the markets. I'll read Brooks again.
2. Next thing I got very curious about was Market Depth. I looked at the charts but somehow looking just at the prices and the orders gave me a much more visceral feel for the markets.
3. Currently, I am looking towards a strategy to scalp just seeing the price and market depth (level 2 data). I can observe prices moving in very short ranges between two price levels. And when those price levels are broken with high volumes then price moves further on that side rapidly. I saw a potential for scalps (less than 4 Nifty points) in this type of strategy.
4. On breakouts, I saw that they are accompanied with high volumes. Is this always true? Also, if there is sudden high volume then how to determine the probability of a breakout?
Also, a physics based approach (Please correct me if its the wrong way to think about the markets). I was looking at 5 mins Nifty candlestick charts with volume below it. I noticed that with some candles, the volume accompanied builds up slowly. For ex: its 2 mins in the candle and its not a lot as compared to neighbouring candles. In some other candles, the velocity or (Volume/time) is very high - more volume generated in 1 min than a 5 mins candle just nearby it. What are the scenarios along with their probabilities or more aptly what is a good way to analyse all this? Is there a concept related to the velocity of volume?
5. I want to scalp nifty futures for 3 points and have a stop loss of 0.1. My brokerage calculator tells me that I need at least 2 points to breakeven with all the trade related charges etc. My understanding for taking profit of 3 points comes from looking at market depth. At certain times, some price levels are strong as there are a lot of orders on that price. So I plan to put my trade just below the price (when going Short) for ex: if 8770 is a price where there are a lot orders then I'll place my trade at the closest price I can get below 8870, like 8869.90 with stop loss of 8870.10 and profit target of 8867.
6. I saw volume footprint charts and quantity traded on price levels on the forex forums but my platform doesn't have them. How can I get them? My understanding is that key levels could be found out where most volume of trades have happened and that information can subsequently be used for entries and exits.
7. How can I get the level 3 data for NSE? This is absolutely critical for me as the most understanding I've developed about the markets is by looking at level 2 data but its only 5 Ask/Bid. More the merrier.
8. I tried looking at technical indicators like stochastic etc. They just don't make sense to me. Should I put more effort in understanding them? Or should I just continue looking at order flow and volume?
9. Also, scalping 0.3-1 points on Nifty seems very doable. Is there a way to avoid charges so that kind of scalping can be profitable? I figured that if I know this then everyone in the market knows this too and people don't do it cos of the charges involved. Am I missing something here?
10. What's the role of order flow and volume when it comes to higher timeframes in comparison to the shorter timeframes? Does it change?
11. How can I execute my orders quickly? For example I want to buy 2 lots of Nifty futures at a price. Is there a platform in India like MD Trader where I can just click next to a price on market depth and my order gets completed? Also if I can shuffle my lots across prices of market depth using just mouse? Even adding/removing lots at market price with keyboard strokes would be handy.
I have a mind that's naturally inclined towards process rather than outcome. Please suggest on where I should focus more and where I should focus less? I will start trading this week and will keep updating how I did and what I learned. This venture is purely learning based.
Thank you,
Pratyahara
