Pivot Trading- a new way of Trading

[Subhadip]

First Answer -

These are minor ERL by minor pivots mph and mpl.ERL got activated once price closed above the mph body pivot line.

Second Answer -

Filters not used , pls suggest the value for 3 Tf. Will use in future

Third Answer -

ERL act as a good support for prices in trend , price after breaking Mph closed above mph thus activating ERLs but was not able to sustain and reversed back showing possible weakness for reversal

This was my entry logic for all cases.

Pls give your insight and correct me for my understanding.

What was the trend?

Please read about the ERL detail once again please.

I do not believe in spoon feeding. So I will always ask question and will clear your cob web.

 

[Tavnaz]

Dear Sarvanan,

I could not visualize it as sideways ,We are making HH ,HL ...Please explain a bit

My this reply is not in conjugation with the thread,but only regarding the sideways part.
Beware this is not in anyway related to ERL,but some basic TA knowledge that every trader acquires even before learning advanced concepts.
Higher Time frame showed the way,It is pretty basic knowledge,last drop point or bar high low give resistance,they are tough suckers.
It is very important for readers of the thread to not be like a high school guy reading physics when you don't even know how to do basic addition.
In response to higher low and higher highs,dear amandeep,prices can do a random dance in a range doesn't mean ,it is going to go somewhere.
There is No HH and HL or LL or LH in a range.

A good trader once said a great thing about ranges and high/lows etc
It is not broken until its broken.
No point in beating your head regarding high lows in a range ,it is purely random.
See Image.

Some more basic Stuff,and bigger picture.

;-)

 

[XRAY27]

My this reply is not in conjugation with the thread,but only regarding the sideways part.
Beware this is not in anyway related to ERL,but some basic TA knowledge that every trader acquires even before learning advanced concepts.
Higher Time frame showed the way,It is pretty basic knowledge,last drop point or bar high low give resistance,they are tough suckers.
It is very important for readers of the thread to not be like a high school guy reading physics when you don't even know how to do basic addition.
In response to higher low and higher highs,dear amandeep,prices can do a random dance in a range doesn't mean ,it is going to go somewhere.
There is No HH and HL or LL or LH in a range.

A good trader once said a great thing about ranges and high/lows etc
It is not broken until its broken.
No point in beating your head regarding high lows in a range ,it is purely random.
See Image.

Some more basic Stuff,and bigger picture.

;-)

Excellent post Tavnaz !!!! There is much more larger picture and we can save our self to the maximum extent from grinding markets..

Demand and supply is one of the best concept for countering this range market.I have shared a ton on this..

There is thread in technical analysis section on demand and supply ,started by niftytrade try to add that to this concept..

ST da !!! suggested Vwap of pratap sir for Range markets

One word of caution. Dont use VPs,mps in a horrizontal sideways period.Else it will give many whipsaws and false trades.Use sideways market tools like VWAP,Support/resistance bands,TDST etc in sideways.

Smart_trade

Bottom line

Whole learning of trading knowledge is to differentiate between Range and trend markets and change our tactics according to that.. THAT IS CALLED EDGE

 

[vijayanscbe]

Subhadip Sir,

I have a query ,posted below is NF 3Tf chart of Oct 1,2015.

My system entries are to trade ERL failures and Enter on Break of H/L of candle closing below ERL line ,My entries on Friday lead to multiple entries with 3 continuous losses .

Please advise how can we avoid /trade such situations.

I am giving my opinion.

I had divide the pivot trading system into two parts primary and secondary.

Primary part
1) Identifying the minor pivots.
2) Identifying the minor trends.
3) Identifying the visual pivots.
4) Identifying the visual trends.
5) Identifying the visual sideways.
6) Identifying the Trading opportunities with above points and do practical tradings.
If I well versed with primary part. Then the secondary part.

Secondary part
7) Identifying the ERLs.
8) Identifying the Rejections.
9) Identifying the Failures.
10) Trading in sideways (lesson is pending).
11) Identifying the Trading opportunities with above points and do practical tradings.

If I am not well versed with Primary part , then I am not going to be successful with Secondary part.

 

[Subhadip]

I am giving my opinion.

I had divide the pivot trading system into two parts primary and secondary.

Primary part
1) Identifying the minor pivots.
2) Identifying the minor trends.
3) Identifying the visual pivots.
4) Identifying the visual trends.
5) Identifying the visual sideways.
6) Identifying the Trading opportunities with above points and do practical tradings.
If I well versed with primary part. Then the secondary part.

Secondary part
7) Identifying the ERLs.
8) Identifying the Rejections.
9) Identifying the Failures.
10) Trading in sideways (lesson is pending).
11) Identifying the Trading opportunities with above points and do practical tradings.

If I am not well versed with Primary part , then I am not going to be successful with Secondary part.

:clap::clapping::clapping:

 

[niftytaurus]

Hi
Thanks Vijay for this insight..I totally agree with this order of learning.
In addition of it, I would like to add that in this system, if we notice , three kinds of trade possible
1) trades in direction of visual trend
2) contra trade on failures/rejections
3) buy suppost & sell resistance ( when market sideways)
this is the order of their difficulty & probabilty also..
when any new trader like me who is new to this system should follow this order to be profitable..
so we should first proficient in basic trade which is direction of visual trend..first we should be profitable by taking only this trade..means money should be made only by those trades..as they are just basic trades, we can see 2-3 scrips together..when money start flowing, it will increase our confidence on ourselves & discipline to trade with objective rules..
now trade no 2, contra trade-- those trade are not objective they need some subjectivity & our own discreation..we can not take failures/ rejection, when market in highly trending mood...or higher tf is trending...& even that condition is not fullfilled, then also, sometimes deep pull back / complex pull back like 2-3 leg pullback can be also happened, which fullfill failure criteria of close below erl but fail trades..
I can tell that with confidence as I have spent some time with those BOF setup, when I learnt thru Lace beggs. .In trending market, BOF happens & then failure fails..so we cant trade every failure/rejection..it need discreation which to trade or not to trade..it comes only with lot of screentime...thats why shubhadeep bro &other experienced traders can take those trades...we can also take those trades but after a sufficient time spending on screentime watching charts..
as if we want to trade failures/ rejections, we should have been practised reading price action bar by bar ..as "HAR CANDEL KUCH KAHTI HAI"& we should learn to listen it.. S ex: it we want to trade a visual erl failure..we should see how price is behaving bar b bar after BO..if we see, uptrend is weakning that opposite orderflow can come sufficiently & enough traders are trapped on that side, than only chance of a reversal..
& I think failure in uptrend are more successful than down trend..as fear is more powerful than greed, so market fall with more momentum than they rise..
3) sideways trade--newbie strictly should not trade..as if we now we can buy support & sel resitance..but it would be difficult to know exact edges of those ranges..

thats only my personal view & observation..everybody have a right to be differ
thanks

 

[nifty trade]

My this reply is not in conjugation with the thread,but only regarding the sideways part.
Beware this is not in anyway related to ERL,but some basic TA knowledge that every trader acquires even before learning advanced concepts.
Higher Time frame showed the way,It is pretty basic knowledge,last drop point or bar high low give resistance,they are tough suckers.
It is very important for readers of the thread to not be like a high school guy reading physics when you don't even know how to do basic addition.
In response to higher low and higher highs,dear amandeep,prices can do a random dance in a range doesn't mean ,it is going to go somewhere.
There is No HH and HL or LL or LH in a range.

A good trader once said a great thing about ranges and high/lows etc
It is not broken until its broken.
No point in beating your head regarding high lows in a range ,it is purely random.
See Image.

Some more basic Stuff,and bigger picture.

;-)

@Tavnaz ji

please contribute in this thread too:clap::clap:
http://www.traderji.com/technical-analysis/99967-demand-supply-zone-trading-9.html

 

[vasan56]

Subhadip da,
Please check this chart entry add and exit are ok.

vishnu_1990v

Vishnu,
Please quote name of the scrip,date and tf of the chart to refer and learn better.Thanks.

 

[vishnu_1990v]

Vasan56,
Rel infra dated sep 23rd and 24th and it is 5min tf.
vishnu_1990v

 

[vasan56]

Subhadip Sir,

I have a query ,posted below is NF 3Tf chart of Oct 1,2015.

My system entries are to trade ERL failures and Enter on Break of H/L of candle closing below ERL line ,My entries on Friday lead to multiple entries with 3 continuous losses .

Please advise how can we avoid /trade such situations.

The VPH and VPL is not breached.Hence it is certainly in side ways.There is no point in trading with ERL.My 2 cents.