Nifty30
- Thread starter linkon7
- Start date
The best thing about trading higher tf is we dont need to micro manage the trades. stop loss is wide and the targets are even bigger. It also means that we can have 1-2 weeks of negative result and then 1 week of humongous profits that gives us enough fat to last for few weeks more...
I have tried and failed to trade 30 min before on 2 occasion and reverted to my time tested 15 min 3 min combo of pure day trading. But now its a conscious attempt to shift to higher tf again....!
First on the agenda is to make the trading plan. Please understand rules are still fluid in nature. so plenty of addition alternation will be made before we can make consistent money with this....
I have tried and failed to trade 30 min before on 2 occasion and reverted to my time tested 15 min 3 min combo of pure day trading. But now its a conscious attempt to shift to higher tf again....!
First on the agenda is to make the trading plan. Please understand rules are still fluid in nature. so plenty of addition alternation will be made before we can make consistent money with this....
First on the agenda is to identify the cycle...
since price moves in waves making higher high higher low in an up trend and lower low lower high in a down trend. But sometimes this can be very deceptive in nature. In reality, price moves up until the last buyer has filled his quota and price falls as long as last seller has sold his inventory. The excess in price in either direction normally have a very tapered volume associated with it. This gives rise to tails which is a sign of the opposite forces reaction to extremes. That excess in either direction needs to be ignored and cumulative effect of last few bars needs to be seen as a unit. Most common method for removing the noise has been moving averages.
In order to de-trend price, we will use 5ma to remove the noise of price action.
Recent example shows that our recent spike in price to 5970 was not accompanied by higher high on the MA. We then made a higher low on price while MA begged to differ again. Next high on MA was much lower than previous pivotal high on MA and bar close below the MA was a good invite to go short marked in red circle.
since price moves in waves making higher high higher low in an up trend and lower low lower high in a down trend. But sometimes this can be very deceptive in nature. In reality, price moves up until the last buyer has filled his quota and price falls as long as last seller has sold his inventory. The excess in price in either direction normally have a very tapered volume associated with it. This gives rise to tails which is a sign of the opposite forces reaction to extremes. That excess in either direction needs to be ignored and cumulative effect of last few bars needs to be seen as a unit. Most common method for removing the noise has been moving averages.
In order to de-trend price, we will use 5ma to remove the noise of price action.
Recent example shows that our recent spike in price to 5970 was not accompanied by higher high on the MA. We then made a higher low on price while MA begged to differ again. Next high on MA was much lower than previous pivotal high on MA and bar close below the MA was a good invite to go short marked in red circle.
hi Linkon
just food fr thought frm my side....
why restrict urself to a 'time frame' ie.. why say that I would trade only 30min or hourly chart... mkt is continuous...we devide it into tfs and charts...
there r only two things happening in the mkt at any given point in time..either it is trending or it is rangebound...if ur system is such that it profits in a trending mkts...just wait fr the time when u see the scale tipped towards a 'trending' mkt.., and take ur entry, forget about the tfs...all u need is a daily chart...
another point...(if ur system is such that it does profit in a trending mkt.) why think of targets at all...let it come back and take u out..
regards
just food fr thought frm my side....
why restrict urself to a 'time frame' ie.. why say that I would trade only 30min or hourly chart... mkt is continuous...we devide it into tfs and charts...
there r only two things happening in the mkt at any given point in time..either it is trending or it is rangebound...if ur system is such that it profits in a trending mkts...just wait fr the time when u see the scale tipped towards a 'trending' mkt.., and take ur entry, forget about the tfs...all u need is a daily chart...
another point...(if ur system is such that it does profit in a trending mkt.) why think of targets at all...let it come back and take u out..
regards
Anurag. Very valid point and I agree with you 100% on this.
It is we who have tried to put timelimit of x minutes as per clock to see the chart. In reality is mkt is continuous and doesn't care for the clock when action is on. To read real flow of mkt, my charts have to as low in tf as possible. In my daytrade, I use 1min chart. In my view, 150bar average on 1min chart will give lot more realistic picture of market than 5bar average on 30min chart.
Happy Trading
It is we who have tried to put timelimit of x minutes as per clock to see the chart. In reality is mkt is continuous and doesn't care for the clock when action is on. To read real flow of mkt, my charts have to as low in tf as possible. In my daytrade, I use 1min chart. In my view, 150bar average on 1min chart will give lot more realistic picture of market than 5bar average on 30min chart.
Happy Trading
Linkon, all the best on your new improvement project for your trading.
Just an observation on your 30m chart.. the last bar of the day is bit strange.. very small sized. This will impact calculation of indicators specially if lookback period is short (for 5bar lookback, each bar carries the weight of 20%, wheares for 200bar average weight of each bar is 0.5%).
All the best and happy trading.
Just an observation on your 30m chart.. the last bar of the day is bit strange.. very small sized. This will impact calculation of indicators specially if lookback period is short (for 5bar lookback, each bar carries the weight of 20%, wheares for 200bar average weight of each bar is 0.5%).
All the best and happy trading.
