My Nifty/Mini-Nifty Positional trade logs

[prabhsingh]

SoftTrader/Anillal

Do we have threads or reading material here on TJ which talks extensively on Price Action theory?

 

[timepass]

SoftTrader/Anillal

Do we have threads or reading material here on TJ which talks extensively on Price Action theory?

I'm not sure how much this will help, but you can read up this thread by TraderDude.

http://www.traderji.com/technical-analysis/66781-price-action-trading-method.html

 

[summasumma]

When market is trending all indicators are useless. The lagging just can not cope with fast moving price action and keeps adjusting in retrospect hence one always has nicely plotted stochs and MACD etc at EOD . Forgive me if what I say annoys you sir but it always amuses me to see most of the traders using trading methods some of which are no longer compatible with the present ways of the market. They used to have some worth long back when Algo HFT and brokers like Zerodha and RKSV were still in future. Of course one may argue and find a lot of positive things to say about indicators but if one is good at trading with visual price action of bars or candles then essentially that trader will have a huge edge over the trader relying on indicators. Here are couple of lines from an article about indicators I copied a long while back from the blog of an accomplished trader -

I differ in your opinion about indicators in trending market. I believe all the indicators looks best when they are plotted in the trending market...say ema crossover, stochastics etc...you can see they capture almost 80-90% of the trend movement.

I agree that these indicators can't cope-up with the fast moving price. But if visual price action has good advantage in trading then definitely these indicators will also have the same as they are just another way of visual representation of the price movement only and interpreted in different way.

Regarding the lag in catching the trend/movement, it depends on what parameters you pass to any indicator. For example incase of EMA, lower the values early the catch of trend. But it will result in lot of whipsaws and losing trades in sideways market. When you try to avoid these whipsaws and increase the EMA values, you might avoid whipsaws but will catch the trend late and also you might exit in wrong place when the trend-reversal has already shown some effect. Considering these facts, i just thought of combining these 2 scenarios by having fast-moving stochs(811,2111..) and slow-moving stochs(3291,2191...) to find the right combination.
I am not saying that this is the perfect combination and you will always gets right signals...but atleast im attempting to see if it gives a system with lesser loss.

...If MA crossover trading is the biggest money sucker of the century then stochastics are next in line. Personally I think this indicator works backwards. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold. You will be with the trend more likely. So if %k and %d are both crossing 80, buy! Same on sell side, sell at 20

Perfect, i indeed use the stochs indicator backwards as pointed-out here if you are following the thread. We never SHORT when stochs enters OB region eventhough literal meaning says "over bought" ... and vise-versa for Long.
Infact, nifty moves strong only when the stochs values mentioned in this thread are crossing 80. So happy to see the words of an accomplished trader to be inline with this method.

Eventually, indicators/price-action is just a small part of the trading game. I think psychology and money-mgmt plays major role for any traders irrespective of he is following price-action or indicators...

Thanks,
...summasumma

 

[summasumma]

All stochs went DOWN. But everything is above 80(OB) region...(except 811 which is below 80 now).

The area highlighted in the chart in orange color indicates the gap between 2111 and 811. 811 is below OB zone and 2111 is in OB zone. Unless there is no big gapdown tomorrow(which will pull 211 also out of OB zone) there is a chance of 811 entering back to OB zone with some UP move. Lets see if it happens.

Rollover:
Exited the sep NF @ 5680...bought@5708.... Loss: 28 points
Entered oct NF long @ 5700...cmp: 5684

 

[prabhsingh]

SummaSumma,

Have you ever tried to test the stochastics from intra-day perpective.Does it proivide any decision making results if combined with Moving Averages.Just looking for your comments from Intra-Day perspective.

 

[summasumma]

SummaSumma,

Have you ever tried to test the stochastics from intra-day perpective.Does it proivide any decision making results if combined with Moving Averages.Just looking for your comments from Intra-Day perspective.

Hi Prabhsingh,

Yes, i tried testing with stochastics for intraday. But couldn't get good combination/results.
I ll be still trying to combine with other indicators for intraday trading. If i get something interesting, will definitely share it here.

Thanks,
...summasumma

 

[Anillal]

I differ in your opinion about indicators in trending market. I believe all the indicators looks best when they are plotted in the trending market...say ema crossover, stochastics etc...you can see they capture almost 80-90% of the trend movement.

I agree that these indicators can't cope-up with the fast moving price. But if visual price action has good advantage in trading then definitely these indicators will also have the same as they are just another way of visual representation of the price movement only and interpreted in different way.

Regarding the lag in catching the trend/movement, it depends on what parameters you pass to any indicator. For example incase of EMA, lower the values early the catch of trend. But it will result in lot of whipsaws and losing trades in sideways market. When you try to avoid these whipsaws and increase the EMA values, you might avoid whipsaws but will catch the trend late and also you might exit in wrong place when the trend-reversal has already shown some effect. Considering these facts, i just thought of combining these 2 scenarios by having fast-moving stochs(811,2111..) and slow-moving stochs(3291,2191...) to find the right combination.
I am not saying that this is the perfect combination and you will always gets right signals...but atleast im attempting to see if it gives a system with lesser loss.

Perfect, i indeed use the stochs indicator backwards as pointed-out here if you are following the thread. We never SHORT when stochs enters OB region eventhough literal meaning says "over bought" ... and vise-versa for Long.
Infact, nifty moves strong only when the stochs values mentioned in this thread are crossing 80. So happy to see the words of an accomplished trader to be inline with this method.

Eventually, indicators/price-action is just a small part of the trading game. I think psychology and money-mgmt plays major role for any traders irrespective of he is following price-action or indicators...

Thanks,
...summasumma

Hello sir
As long as you feel comfortable trading using indicators, great. I trade watching the interplay of demand and supply in a given time frame so all these computed laggards are just distractions. As they say, each to his own.
Yes I agree totally that all the TA etc play a very minor role in a traders success. It is the mental makeup that holds the key. And believe me to have the right attitudes is easier said than done. One can not have it by reading and quoting Elder or Douglas or Livermore etc. or following others or surfing net etc. It takes a lot of heartache and lots of failure and lots of working on oneself. Once it is there then all things fall into place. MM, right entry and exits etc. Incidently talking of the process of getting there reminds me of what I once heard in a lecture by a very wise spiritualist. He said something like - Tragedy is people seek god in order to find peace. In reality the converse is true. God himself comes to the one who has peace of mind.

 

[Anillal]

SoftTrader/Anillal

Do we have threads or reading material here on TJ which talks extensively on Price Action theory?

I don't think so. But you can google for many sites dealing with PA on the net and videos on youtube.

 

[summasumma]

The area highlighted in the chart in orange color indicates the gap between 2111 and 811. 811 is below OB zone and 2111 is in OB zone. Unless there is no big gapdown tomorrow(which will pull 211 also out of OB zone) there is a chance of 811 entering back to OB zone with some UP move. Lets see if it happens.

The pullback of 811 back to OB zone we were talking about yesterday highlighted again in orange box...
Lets see if it holds till EOD.

 

[summasumma]

Parents went down and child went UP marginally...all in OB zone.
2111,811 went UP and 811 got pullback to OB zone again.

Holding Long ... [email protected]: 5730