LoneWolf's Intraday and Swing Trade Diary with Volume Price Analysis
- Thread starter LoneWolf
- Start date
Trade Review
As it was seen in yesterday's price action and volume analysis, the re accumulation resulted in a gap up opening above 25.25K level. Opening bar was a bullish bar closing at its top and with a wide range on ultra high volume. Strong bullish sentiment. The immediate result of this effort would be to price continue trade in the direction of breakout. So LONG aggressively above 1st bar high.
At B, after a 2nd bullish wide range bar in the direction of breakout, a small low close shooting star appears on high volume. At this point I tighten SL to 2nd 3m bar low. If the shooting star indicates selling pressure and change in hand then the result should be price marked down on subsequent bars, which is not seen here. This indicates some weak bulls closing out long position perhaps. It follows by a 3 bar congestion. I add above the congestion.
Then price rallied with rise on above average volume to C where there is a doji on above average volume after a high close bullish bar. The range of doji is small, but volume is above average. Price-volume anomaly is seen, clearly price is finding its tough to rise further and no fresh demands are pumping in to the market. Either profit booking will be seen, or price might consolidate at this level. And there is some below average volume bearish bar indicating consolidation.
At D, again price volume anomaly is seen and the subsequent decline shows rise in volume, indicating some profit booking and change in hand. Tighten the SL to the bullish WRB above D.
At E, we see a bearish bar closing at its low with volume above average. Effort to fall. But subsequent bars started rising, violating Wyckoff's 3rd law. This is a sign of strnegth. And I trail SL to E's low.
At F, there is a buying climax, followed by an effort to fall, and then again a successful test of demand bar. So I trail the SL below the effort to fall bar and exit was made there.
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The day was pretty simple and easy to trade and also it was a trend day. Means a huge profit day
But unfortunately I could not capitalize on the trend. My 1st LONG order did not get fill for the slippage. I thought of entering where I had marked add on my chart. But after the miss of original entry level, I was bombarded with feeling of rejection, fear of reversal (on a entry at higher level), and also dismissal of the situation where I was in. As a result all these psychological factors, did not allow me to enter there. and I missed the entire trend in the process. I thought of closing out terminal and leave, but then decided to continue with paper trading as if nothing happened. Cause today I met few of my old enemies who are dragging me from being a profitable trader on a long run. and I must address them.. This time I need to win, and I must win over them.
As it was seen in yesterday's price action and volume analysis, the re accumulation resulted in a gap up opening above 25.25K level. Opening bar was a bullish bar closing at its top and with a wide range on ultra high volume. Strong bullish sentiment. The immediate result of this effort would be to price continue trade in the direction of breakout. So LONG aggressively above 1st bar high.
At B, after a 2nd bullish wide range bar in the direction of breakout, a small low close shooting star appears on high volume. At this point I tighten SL to 2nd 3m bar low. If the shooting star indicates selling pressure and change in hand then the result should be price marked down on subsequent bars, which is not seen here. This indicates some weak bulls closing out long position perhaps. It follows by a 3 bar congestion. I add above the congestion.
Then price rallied with rise on above average volume to C where there is a doji on above average volume after a high close bullish bar. The range of doji is small, but volume is above average. Price-volume anomaly is seen, clearly price is finding its tough to rise further and no fresh demands are pumping in to the market. Either profit booking will be seen, or price might consolidate at this level. And there is some below average volume bearish bar indicating consolidation.
At D, again price volume anomaly is seen and the subsequent decline shows rise in volume, indicating some profit booking and change in hand. Tighten the SL to the bullish WRB above D.
At E, we see a bearish bar closing at its low with volume above average. Effort to fall. But subsequent bars started rising, violating Wyckoff's 3rd law. This is a sign of strnegth. And I trail SL to E's low.
At F, there is a buying climax, followed by an effort to fall, and then again a successful test of demand bar. So I trail the SL below the effort to fall bar and exit was made there.
=============================================================
The day was pretty simple and easy to trade and also it was a trend day. Means a huge profit day
But unfortunately I could not capitalize on the trend. My 1st LONG order did not get fill for the slippage. I thought of entering where I had marked add on my chart. But after the miss of original entry level, I was bombarded with feeling of rejection, fear of reversal (on a entry at higher level), and also dismissal of the situation where I was in. As a result all these psychological factors, did not allow me to enter there. and I missed the entire trend in the process. I thought of closing out terminal and leave, but then decided to continue with paper trading as if nothing happened. Cause today I met few of my old enemies who are dragging me from being a profitable trader on a long run. and I must address them.. This time I need to win, and I must win over them.
The day was pretty simple and easy to trade and also it was a trend day. Means a huge profit day
But unfortunately I could not capitalize on the trend. My 1st LONG order did not get fill for the slippage. I thought of entering where I had marked add on my chart. But after the miss of original entry level, I was bombarded with feeling of rejection, fear of reversal (on a entry at higher level), and also dismissal of the situation where I was in. As a result all these psychological factors, did not allow me to enter there. and I missed the entire trend in the process. I thought of closing out terminal and leave, but then decided to continue with paper trading as if nothing happened. Cause today I met few of my old enemies who are dragging me from being a profitable trader on a long run. and I must address them.. This time I need to win, and I must win over them.
But unfortunately I could not capitalize on the trend. My 1st LONG order did not get fill for the slippage. I thought of entering where I had marked add on my chart. But after the miss of original entry level, I was bombarded with feeling of rejection, fear of reversal (on a entry at higher level), and also dismissal of the situation where I was in. As a result all these psychological factors, did not allow me to enter there. and I missed the entire trend in the process. I thought of closing out terminal and leave, but then decided to continue with paper trading as if nothing happened. Cause today I met few of my old enemies who are dragging me from being a profitable trader on a long run. and I must address them.. This time I need to win, and I must win over them.
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OKay, as per the above concept, today my re-entry could have been planned at B(Add level), and near the pivot low between C and D. I am considering one more thing as well, that is to enter anyway with 5/10 points higher on such days, because since the bulls are so strong ( as it is analysed from volume validation ), risking 5/10 points extra to get in to a trend would be okay I guess, as the reversal and SL hit would be less probable. If at all it hits SL, then most of the time, it will invalidate the bullish strength and trend would be over, worst I will loose 10 points extra, but on good side I will enter in to a good trend trade. What's your view on the same ??
I see few important lessons from that chart. One is measuring the strength of a trend through this gap price action concepts. And secondly ( i almost got excited when I saw that as I was reading the chart from left to right bar by bar ). Alomst near the top a 3rd add s taken. When strength is seen as extremely bullish on chart, he does not even want to let go off a single bit of profit, and riding the trend till its last point. Thats awesome..
With such quality on our side, our profit factor will increase much more on such trend days as comapred to small win/scratch trades from range bound days.
I see few important lessons from that chart. One is measuring the strength of a trend through this gap price action concepts. And secondly ( i almost got excited when I saw that as I was reading the chart from left to right bar by bar ). Alomst near the top a 3rd add s taken. When strength is seen as extremely bullish on chart, he does not even want to let go off a single bit of profit, and riding the trend till its last point. Thats awesome..
With such quality on our side, our profit factor will increase much more on such trend days as comapred to small win/scratch trades from range bound days.
Got it, Saving the post here..
Thanks.
Thanks.
P-1 or 2 Bars Entry
Today I will share an entry technique which is my favourite entry technique for getting into a trend move, Many times we either miss an entry in a trend move or we get out in between and we want to enter again with small, predefined and controlled risk.
The chart is attached. Here market was in uptrend, it opened with a gap up and after a bit of correction, the uptrend resumed and we want a low rish entry in this uptrend.
Here we locate a small pivot low. And our entry in long trade is above high of the bar which is one bar earlier to pivot low bar provided it is higher than the pivot low bar high, else we go 2 bars earlier.
I have marked 5 places where market gave us a low risk entry shown by blue lines. The stoploss is at the low of the pivot low bar....and you are hooked into a trend...enjoy the ride.
This is an entry method....it is NOT a stand alone trading system....please use it as an entry method only.
The method is based on the fact that an uptrend is made up of higher pivot highs and higher pivot lows and if we keep stops at a pivot low, it will not be hit in a strong uptrend, and if it is hit, it means that the uptrend is weak and we better get out instread of hanging around in a market which is not trending strongly. It is based on sound trading principle and hence this entry technique has more than 75-80 % success rate and is my favourite.....This entry is a great entry for adds even if we are already in trend. It gives low risk add points.
Mirror image to get into a downtrend.....
Smart_trade
Today I will share an entry technique which is my favourite entry technique for getting into a trend move, Many times we either miss an entry in a trend move or we get out in between and we want to enter again with small, predefined and controlled risk.
The chart is attached. Here market was in uptrend, it opened with a gap up and after a bit of correction, the uptrend resumed and we want a low rish entry in this uptrend.
Here we locate a small pivot low. And our entry in long trade is above high of the bar which is one bar earlier to pivot low bar provided it is higher than the pivot low bar high, else we go 2 bars earlier.
I have marked 5 places where market gave us a low risk entry shown by blue lines. The stoploss is at the low of the pivot low bar....and you are hooked into a trend...enjoy the ride.
This is an entry method....it is NOT a stand alone trading system....please use it as an entry method only.
The method is based on the fact that an uptrend is made up of higher pivot highs and higher pivot lows and if we keep stops at a pivot low, it will not be hit in a strong uptrend, and if it is hit, it means that the uptrend is weak and we better get out instread of hanging around in a market which is not trending strongly. It is based on sound trading principle and hence this entry technique has more than 75-80 % success rate and is my favourite.....This entry is a great entry for adds even if we are already in trend. It gives low risk add points.
Mirror image to get into a downtrend.....
Smart_trade
One question on that chart which you had attached in P-1 entry technique. That chart was from 19th Sep 2013, I checked it and NIFTY has opened with a huge gap up after a 6 day's of consolidating trading range. So we expect the bullish ness to continue and our trade direction was LONG. Why did not we use the P-1 method on the 3rd bar from open, which is also a pivot low, and the next bar took out the high of P-1 bar ?
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