My daytrading
- Thread starter Raghavacc
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That's how some traders trade moving averages.Green = 21SMA, yellow = 10SMA.Its 30 Min chart. Once 10SMA crosses 21 SMA downside see what happens. Everytime it pulls back to 10SMA price gravitates down.So the people who follow this method short each time price pulls back to 10sma ( Not necesarily be 10 sma.You can use any average that you are comfortable with) .Vice versa for uptrend.
I have seen people doing it wonderfully in Forex.I am not sure whether there are any people doing it in Indian markets .Higher the TF ,better will be the result.
However If you dare to do it on 5 Min ,be ready for BP check up....
I have seen people doing it wonderfully in Forex.I am not sure whether there are any people doing it in Indian markets .Higher the TF ,better will be the result.
However If you dare to do it on 5 Min ,be ready for BP check up....
We shall try to understand the term called "spread" and how it results in big moves.
Lets not try to deal in high language.We shall keep it simple.According to me a spread is a length of a particular order/collective orders.
Lets take an example. Say Market is making down move and say Nifty is at 5475 .Now say we want to buy 100 lots of Nifty between 5500 -5550. Now what I do is like this.
I place my order like this:
Quantity - 100 lots
Trigger price :5500
Limit price : 5550
A trigger price refers to a price if triggered or reached results in execution of our orders.So that means If Nifty reaches 5500 level our orders start executing.
What about limit price.It is a price beyond which we don't want to buy. Its a Max limit,seal,cap.Why limit? because we don't want to be buying too high as we want market to move up. Rule: buy low sell high. So in this case we don't want to buy over and above 5550.
So the difference between A Limit price i.e:5550 and the trigger price i.e:5500 i.e:50 points is called as spread in this case.
Another question :Why 50 points spread?Answer is :I want to buy 100 lots and I may not have 100 lots of sell orders ( To match my buy orders ) at 5500.Hence I am putting a spread or net.Its like a fisher man spreading across his net across a diameter of the sea.He knows if he puts his net at a single place he won't get enough fishes or he may not get the fish at all.
Now what? The 100 orders may get executed like this.
20 Orders executed @ 5500
12 Orders executed @ 5510
15 Orders executed @ 5515
10 Orders executed @ 5528
5 Orders executed @ 5535
6 Orders executed @ 5540
12 Orders executed @ 5547
20 Orders executed @ 5550
Total = 100 Lots of Nifty bought starting from 5500 to 5550.Thats how spread works. Reverse it for selling orders.
Lets not try to deal in high language.We shall keep it simple.According to me a spread is a length of a particular order/collective orders.
Lets take an example. Say Market is making down move and say Nifty is at 5475 .Now say we want to buy 100 lots of Nifty between 5500 -5550. Now what I do is like this.
I place my order like this:
Quantity - 100 lots
Trigger price :5500
Limit price : 5550
A trigger price refers to a price if triggered or reached results in execution of our orders.So that means If Nifty reaches 5500 level our orders start executing.
What about limit price.It is a price beyond which we don't want to buy. Its a Max limit,seal,cap.Why limit? because we don't want to be buying too high as we want market to move up. Rule: buy low sell high. So in this case we don't want to buy over and above 5550.
So the difference between A Limit price i.e:5550 and the trigger price i.e:5500 i.e:50 points is called as spread in this case.
Another question :Why 50 points spread?Answer is :I want to buy 100 lots and I may not have 100 lots of sell orders ( To match my buy orders ) at 5500.Hence I am putting a spread or net.Its like a fisher man spreading across his net across a diameter of the sea.He knows if he puts his net at a single place he won't get enough fishes or he may not get the fish at all.
Now what? The 100 orders may get executed like this.
20 Orders executed @ 5500
12 Orders executed @ 5510
15 Orders executed @ 5515
10 Orders executed @ 5528
5 Orders executed @ 5535
6 Orders executed @ 5540
12 Orders executed @ 5547
20 Orders executed @ 5550
Total = 100 Lots of Nifty bought starting from 5500 to 5550.Thats how spread works. Reverse it for selling orders.
Last edited:
respected Raghavacc, made some changes in your last post according to my understanding.maybe this is wrong.tell me if its not ok and maybe i can delet this reply.
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We shall try to understand the term called "spread" and how it results in big moves.
Lets not try to deal in high language.We shall keep it simple.According to me a spread is a length of a particular order/collective orders.
Lets take an example. Say Market is making down move and say Nifty is at 5475 .Now say we want to buy 100 lots of Nifty between 5500 -5550. Now what I do is like this.
I place my order like this:
Quantity - 100 lots
Trigger price :5500
Limit price : 5550
A trigger price refers to a price if triggered or reached results in execution of our orders.So that means If Nifty reaches 5500 level our orders start executing.
What about limit price.It is a price beyond which we don't want to buy. Its a Max limit,seal,cap.Why limit? because we don't want to be buying too high as we want market to move up. Rule: buy low sell high. So in this case we don't want to buy over and above 5550.
So the difference between A Limit price i.e:5550 and the trigger price i.e:5500 i.e:50 points is called as spread in this case.
Another question :Why 50 points spread?Answer is :I want to buy 100 lots and I may not have 100 lots of sell orders ( To match my buy orders ) at 5500.Hence I am putting a spread or net.Its like a fisher man spreading across his net across a diameter of the sea.He knows if he puts his net at a single place he won't get enough fishes or he may not get the fish at all.
Now what? The 100 Lots may get executed like this.
20 Lots executed @ 5500
12 Lots executed @ 5510
15 Lots executed @ 5515
10 Lots executed @ 5528
5 Lots executed @ 5535
6 Lots executed @ 5540
12 Lots executed @ 5547
20 Lots executed @ 5550
Total = 100 Lots of Nifty bought starting from 5500 to 5550.Thats how spread works. Reverse it for selling orders.
-------------------------------------------------------------------------------------
We shall try to understand the term called "spread" and how it results in big moves.
Lets not try to deal in high language.We shall keep it simple.According to me a spread is a length of a particular order/collective orders.
Lets take an example. Say Market is making down move and say Nifty is at 5475 .Now say we want to buy 100 lots of Nifty between 5500 -5550. Now what I do is like this.
I place my order like this:
Quantity - 100 lots
Trigger price :5500
Limit price : 5550
A trigger price refers to a price if triggered or reached results in execution of our orders.So that means If Nifty reaches 5500 level our orders start executing.
What about limit price.It is a price beyond which we don't want to buy. Its a Max limit,seal,cap.Why limit? because we don't want to be buying too high as we want market to move up. Rule: buy low sell high. So in this case we don't want to buy over and above 5550.
So the difference between A Limit price i.e:5550 and the trigger price i.e:5500 i.e:50 points is called as spread in this case.
Another question :Why 50 points spread?Answer is :I want to buy 100 lots and I may not have 100 lots of sell orders ( To match my buy orders ) at 5500.Hence I am putting a spread or net.Its like a fisher man spreading across his net across a diameter of the sea.He knows if he puts his net at a single place he won't get enough fishes or he may not get the fish at all.
Now what? The 100 Lots may get executed like this.
20 Lots executed @ 5500
12 Lots executed @ 5510
15 Lots executed @ 5515
10 Lots executed @ 5528
5 Lots executed @ 5535
6 Lots executed @ 5540
12 Lots executed @ 5547
20 Lots executed @ 5550
Total = 100 Lots of Nifty bought starting from 5500 to 5550.Thats how spread works. Reverse it for selling orders.
Dear Gunavadhi,
You are absolutely right. Instead of 5500 I mentioned it as 5000 in few places.Corrected in original post.
I am learning from each one of you every day. This thread is meant not only for sharing what I have ,but also for improving myself,correcting my mistakes.Please do not hesitate to correct me whenever I am wrong. It is your own thread.
You are absolutely right. Instead of 5500 I mentioned it as 5000 in few places.Corrected in original post.
I am learning from each one of you every day. This thread is meant not only for sharing what I have ,but also for improving myself,correcting my mistakes.Please do not hesitate to correct me whenever I am wrong. It is your own thread.
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