Master one trick only

[Somatung]

This is the chart from Niftytaurus:

http://i.imgur.com/4ytSNUY.jpg

Thanks Niftytaurus to post it. Now I was surfing the forum in the last hour and look what I found, posted from a senior trader last year. Thought I have to make a post about this, as the charts are like mirror images. Absolute amazing. Compare the Nifty chart from today and compare the chart posted in those post from an other market. Absolute the same picture. So if it is now Nifty or any other market, at the end they all work the same way.

http://www.traderji.com/members-dis...ing-crash-72-hours-reply-quot.html#post881053

http://i39.tinypic.com/2uzy1eb.png

 

[jetking]

 

[Somatung]

Thanks as always.

One question: Time 12:30 Did you get stopped out there, as you use a new color for that level? The same color you use for the line at 14:05. (When ever time and mode permits) Wish you in advance a nice, expanded weekend.

 

[jetking]

Thanks as always.

One question: Time 12:30 Did you get stopped out there, as you use a new color for that level? The same color you use for the line at 14:05. (When ever time and mode permits) Wish you in advance a nice, expanded weekend.

sorry the chart was incomplete,edited the same

the different colour line was marked as support line

and gone through your post at 1430 about the MOVE

it was simply superb,like yesterday

a happy weekend to you also

 

[linuxguy]

First of all thank you Avnyji for such a simple and effective strategy.
I am in learning this strategy and so trying to understand this set up. So please guide me regarding following example from post #111. I am taking the statements from the post in which this strategy is described and comparing with the chart. Statements are given in bold.

wait for the price to break out either side of first candle.

In the chart the second 3 min candle gave a break out above the high of first 3 min candle and closed above the high of the 1st candle.

Is it necessary for candle to close above the high to call it a breakout?

let us assume the price gave a B/O,above the high of first
candle,then, if price comes near to the S/R line and start reversing(in the
direction of break out),buy above the most recent bull candle.

Here, the third candle opened near the resistance and started going up. So would we say above condition is satisfied, i.e. after B/O price came near the S/R line and start reversing?

buy above the most recent bull candle.

If yes,then we buy above the high of the second candle.

STOPLOSS: is below the low of lowest bar prior to this bull
candle,or the low of this bull candle,if it is lowest,among the
recent candles

The stoploss would be below low of second candle.


Accordingly, entry would approximately be around 10305, and SL would be around 10280. Then with fixed target at 20, risk/reward ratio comes at approx. 25:20 Would we go for such a trade?


Also, if the very first candle that goes beyond the S/R comes back and closes near the S/R line, would we say price broke out and came back to the S/R line?

Thanks in advance.

LG.

 

[chinmay555]

Respected Sir

Please See the image

http://imageshack.com/a/img812/7136/dmfo.jpg

is it right ?



Warm Regards
Chinmay

 

[manishchan]

Accordingly, entry would approximately be around 10305, and SL would be around 10280. Then with fixed target at 20, risk/reward ratio comes at approx. 25:20 Would we go for such a trade?

Also, if the very first candle that goes beyond the S/R comes back and closes near the S/R line, would we say price broke out and came back to the S/R line?

Thanks in advance.
LG.

Linuxguy : You have traded the set up very well. I wanted to tell you that I have tried this set up on BNF and did some backtesting but I found the risk reward very unfavorable. One of the reasons is that the bnf bar ranges are very high.. sometimes, even 1 min bar will have range of 20-30 points that means the usual sl will have to be within that range. Further 25 points risk to make 20 points will be very harmful for the capital. (my personal view)

 

[worthless]

let us assume the price gave a B/O,above the high of first
candle,then, if price comes near to the S/R line and start reversing(in the
direction of break out),buy above the most recent bull candle.

Here, the third candle opened near the resistance and started going up. So would we say above condition is satisfied, i.e. after B/O price came near the S/R line and start reversing?

I think there is no pull back there in 3 minutes. From what I have understood, for it to be considered pull back, bar should have closed near the 3 minute bar high.

 

[linuxguy]

I think there is no pull back there in 3 minutes. From what I have understood, for it to be considered pull back, bar should have closed near the 3 minute bar high.

I am sorry I didnt get it. What I meant was the second candle gave breakout. Third candle opened near the S/R line, and moved up. So literally this satisfies what the rule says. Perhaps if you could post some chart.

 

[jetking]

I am sorry I didnt get it. What I meant was the second candle gave breakout. Third candle opened near the S/R line, and moved up. So literally this satisfies what the rule says. Perhaps if you could post some chart.

dear,

you are absolutely right.if you follow the rules word by word in a mechanical fashion,than yes,the buy triggered at the 3rd candle
but this was not a pullback,it was a fluctuation in price
but price action is not a mechanical trading

if u have gone through the thread,the thread starter has clearly mentioned that rules act as flexible boundary, they are not rigid

moreover this was not a pullback,it was a fluctuation in price

here if you analyse bar by bar than:

1st candle was a high range bull candle
2nd candle was a mid close bull candle,means price was not sustaining at higher level,it shows little weakness,furthur confirmation required

3rd candle again made a new high but closed well below the high,showing the unability of price to sustain at higher level

next candle confirmed the weakness

this is as per my understanding

hope it helps