My daytrading

[dhimanin]

dear raghav,
good analysis i learned from your charts.
keep it up.
thanks for sharing such a good info.

ss dhiman

 

[Smart_trade]

We see some signs of friction in this thread.I would request the following to all so that we keep harmony and order in this thread :

1) All direct questions which are asked in proper language may be replied properly....let us be more patient in our questions and answers both.An aggressive question may be ignored totally if we think it fit to do so.

2) All members are requested to ask genuine questions....if someone does not agree with the things mentioned in this thread he has a liberty to ignore the thread. I dont think that by reading the posts in this thread the new traders are going to harm themselves. Let the answers also be simple and straight.

We are all students of the market and we are all here to share our knowledge,experience and gain knowledge in the process. We ,I hope, are not here for one up manship and proving who is smarter than other. Market is smarter than all of us put togather and we channelise all our energies to gain an edge in the market.

I request everybody to cooperate. Thank you all ,friends...

Smart_trade

 

[Raghavacc]

hi Raghav,
i have one query regarding stoch settings in amibroker where i see the settings of %d and %k separately mention plz tell me the settings for stoch.For %d there are two parameters and for %k there are three parameters.

thanks in advance

ss dhiman

Hi Dhiman,

I do not use Amibroker.I request some members using Ami to guide.

Regards
Raghav

 

[rajputz]

this is the code for stochastic with settings of 14,5,5

check if its of any use

_SECTION_BEGIN("Stochastic %K");
k=StochK( periods = 14, ksmooth=5 );
d=StochD( periods = 14, Ksmooth=5, Dsmooth=5 );
Plot(k, "stock 14,5", colorDarkGreen, styleLine);
Plot(d,"stoch 14,,5",colorDarkRed, styleLine);
_SECTION_END();

 

[MarketRider]

One of the member has sent a PM to me and his opinions are like this:

1. This system cannot be understood by newbies.

2. This system uses very little information to take trading decisions.

My answers to this questions are:

1.Any one when enters market has to have atleast basics in his bag. Its like when we learn driving car we should have atleast basic judgement skills and then where to apply brakes , when t accelerate etc. Once we get hold of it we can take our car to congested places.

Now when it comes to system , a newbie can just start trading this system just by using BB piercing. Trade upper piercing in OB and lower pierce when in OS. Can keep the stoploss at the top or bottom of that pierced bar. Thats it. as simple as that.I have posted enough charts in BB thread which itself talks how profitable it can be.

As he trades this simple setup for weeks, months and years the understanding of patterns, price action and pivots,res,supp develops by experience and screen time. In market there is no shortcut.

2. What is meant by little information?what is meant by full information? I asked the same person if the information I use is little then tell me what all information should I make use of.So far no answers. When one comes with say "X" is wrong better he suggests a "Y" alternate.I mean when I say something is wrong I should be in a position to say what is right. My answer to this question is -in the chart itself all the information is built in and factored.There are traders who make tonnes of money just by using chart and volume alone.

Also I do not have any compulsion to prove or make any one to trade this system. I do not feel comfortable in repeating this sentence again and again.

Regards
Raghav

You don't have to waste your time and energy to this, just continue with your chart work and answer only genuine queries...ok..:thumb:

 

[Raghavacc]

AW,

Few observations from my real trades.

90 - 95% of the times stoch and BB complement each other .I.e: Upper and lower piercing happens in OB and OS respectively.

Regarding your opinion on antitrend and clarity is concerned. Incidentally those piercing takes place at the start of correction waves and then at the resume or continuation of impulse waves. I have posted lot of charts in BB thread and even on trending days I caught huge moves successfully in scrips like Tisco just using this method alone.

I do agree that Trend following and scalping are 2 different mindsets.Here we respect both .No disputes.

Further since the Stop remains very near ( top or bottom of upper or lower band respectively ) whipsaws are not of a big issue.

I am attaching ICICI Bank 4 Min chart for last 3 days. It gave enough opportunity for profit.Also to note the fact that on all ocassions BB gives signal either in OB or OS zone.So we have no conflict .Trend follower can follow trend and a scalper can break that trend in to parts (up and down) and grind most of it.

However no system is perfect.if something works even 60% of the times we are happy.

The reliability on the system remain high due to its usage in both trending and range bound markets.

Regards
Raghav

This is what Exactly this system wants to achieve. We are in a trending market now. That does not mean we disappoint a scalper. We want rewards for both .Educomp chart we are looking at 20th May .Just one signal early in the morning for a trend follower. Then all the way and entire month is made. He can spend rest of the month for any other committments!!!:thumb:560-500.

Then a scalper has may be 2-3 signals in the antitrend direction which also fetches few rupees. We need to remember a scalper never remains in the trade for say more than 30 Minutes.(max).So at the end of the day both go smiling. Can it become simpler than this?

Also note where the signal got generated .In oversold zone. So Stoch and BB go in synch.Chart keeps on generating signals like this number of times in a day in a week. Just catch 2-3 signals in a week .Thats enough.Even powerful swing trading can be done through this set up. If you surf through BB thread I posted one chart when ICICI was @1000 and it gave a sell signal ( F&O).I used same system. BB upper pierce.then negative divergence.Today its trading @ 834.

I do study lot on psychology. In every one of the book I read it concludes that human brain is so tuned from early ages that it cannot do simple things over a period of time consistently.Ironically even we don't allow others to do simplistic things....!!!we need magic formulas everywhere.....well......... what to say...

Sorry ST - Thats the way I talk... too much straight forward....

Regards
Raghav

 

[Raghavacc]

Lets keep it simple.

Oversold: Say we have many vegetable shops in our colony.They keep on selling and at some moment say all the stocks start getting emptied.But people have to eat and survive .So people start buying and due to heavy demand the shopkeeper keeps on increasing the price. So the price goes up.

Demand>supply = price goes up

Thats why we always BUY in oversold zone because price is going to go up.

( Exception Stoch stays in OS>5BARS )

Overbought: Lets say people have bought the vegetable for next one week and the demand now has declined as there are no buyers.Then the shopkeeper start reducing the prices as there is no demand. So price drops.

Thats why we always SELL in OB zone as the price declines and we can buy later stage for lesser price.

( Exception Stoch stays in OB>5BARS).

supply > demand = price goes down

Its just a hypothetical example to understand the concept. Lets not apply our logical mind here !!!.

Regards
Raghav

 

[laxsri]

Excellent Raghav. Truly I would try to simulate and post my experiences.

 

[laxsri]

Hi Raghav,

For Pt #2 - OS is not > 5, but still should that be considered as a BUY signal? Please advise. There is a suggestion of entering @ 5035, any suggestive reasons.

 

[laxsri]

Hi,

This is the Nifty 5 min chart. Please observe the blue line in the image attached. Here is where RSI > 70 for more than 5 candles (satisfying the first condition), for the second condition, there is no candlestick pattern showing negativity signs but the Nifty has crashed. Please suggest the behaviour behind it.

Also, for Tata Steel and SBI, the candlestick trends were positive in the daily charts of the type "Meeting Lines Pattern" and "Bullish hold pattern", still both of them closed in negative. Any suggestive reasons.