Price Action Scalping- trading diary
- Thread starter primitivetrader
- Start date
- Tags bankniftyfuture discreationary price action scalping
whatever is the trade setup always try to take entry on low to very low volume bars and/or on narrow range bars (if not looking for bo type entry). this way positions are taken in low volatility and chances of price moving in desired direction is high. reason for the same is that big money is active on high/ultra high volume bars and wide range bars or both. low volume or narrow range or both are signs of testing before move in the price. one may miss couple of trades but trade off is excellent of trade moving in desired direction without first hitting the sl.
As a learner the best way is to take any chart (start on daily) and go backwards checking each day's volume. Stop when you see a day with very low volume wrt the days nearby. Now check what happened to the price after that day. Note down the date, price, and volume.
If the theory holds good in atleast 70% cases you can think about further steps.
If the theory holds good in atleast 70% cases you can think about further steps.
Price action reading:
reading price action bar by bar does not make or contribute to profit, this is the thing i have learnt after considerable experience in day trading ( i consider myself very good at such kind of analysis). it only gives an intellectual kick/high to a trader who is doing such kind of pa reading. major disadvantages of bar by bar price action reading in day trading:
1) lots of stress
2) fatigue
3) myopic view of the chart.
4) one start looking at trades not even with minimum profit points. but that realization come after the trade is done and you are having just 20-25 points gross profit in bnf.
day trader cannot read majority of price action during the day. this is the second bitter truth, i have accepted long time back after much experiments. most of the time as per me price action is random during the day. why it is ? i dont know and not interested in knowing. but what i do know is it reduces my efforts to justify any and every move or swing or individual price bar action on the chart.
the above 2 paras paint a very bleak picture of day trading or to be precise of price action reading. well it is not supposed to be easy rather very difficult, because most of the time we dont know, what we dont want to know and try to know everything. the primary objective of a day trader must be making profits. and profit comes when you are in control of yourself. if we stop reading price bar by bar and accept that majority of the pa is not readable by us than our task is cut to half. and we can focus of larger things in day trading.
larger thing with relation to pa is knowing price from bird eye view. how overall price structure is on the chart without any levels or indicators or oscillators. this is the most basic thing of pa reading and if one spends considerable amount of time and effort here he/she will be rewarded handsomely by mkt. it will tell how the previous day has progressed for eg yday bnf was in control of day time frame trader ( this is MP term, as i have not found a better way to write it) as it failed to break the previous day's range and fail to cross first hour range. its all about anticipating and predicting the price action. day trader need to find is there any short of range extension happening or price is moving between 2 extremes.
when we look at the whole chart from the bird eyes view we will find many thing natural S/R level, we are in a better position to anticipate what next day going to be on the basis of today's price. if next day pa is not behaving as per out anticipation what other thing it can do. one will learn to do analysis of chart with "IF".
to be continued....
reading price action bar by bar does not make or contribute to profit, this is the thing i have learnt after considerable experience in day trading ( i consider myself very good at such kind of analysis). it only gives an intellectual kick/high to a trader who is doing such kind of pa reading. major disadvantages of bar by bar price action reading in day trading:
1) lots of stress
2) fatigue
3) myopic view of the chart.
4) one start looking at trades not even with minimum profit points. but that realization come after the trade is done and you are having just 20-25 points gross profit in bnf.
day trader cannot read majority of price action during the day. this is the second bitter truth, i have accepted long time back after much experiments. most of the time as per me price action is random during the day. why it is ? i dont know and not interested in knowing. but what i do know is it reduces my efforts to justify any and every move or swing or individual price bar action on the chart.
the above 2 paras paint a very bleak picture of day trading or to be precise of price action reading. well it is not supposed to be easy rather very difficult, because most of the time we dont know, what we dont want to know and try to know everything. the primary objective of a day trader must be making profits. and profit comes when you are in control of yourself. if we stop reading price bar by bar and accept that majority of the pa is not readable by us than our task is cut to half. and we can focus of larger things in day trading.
larger thing with relation to pa is knowing price from bird eye view. how overall price structure is on the chart without any levels or indicators or oscillators. this is the most basic thing of pa reading and if one spends considerable amount of time and effort here he/she will be rewarded handsomely by mkt. it will tell how the previous day has progressed for eg yday bnf was in control of day time frame trader ( this is MP term, as i have not found a better way to write it) as it failed to break the previous day's range and fail to cross first hour range. its all about anticipating and predicting the price action. day trader need to find is there any short of range extension happening or price is moving between 2 extremes.
when we look at the whole chart from the bird eyes view we will find many thing natural S/R level, we are in a better position to anticipate what next day going to be on the basis of today's price. if next day pa is not behaving as per out anticipation what other thing it can do. one will learn to do analysis of chart with "IF".
to be continued....
price action reading continue...
we all have "chool" or "keeda" or desire to be intellectually right. well in routine life its gives one an ego booster to be intellectually right in society. those brownie points to be right in an argument or debate are wonderful things to have in life. but when it comes to reading price action such things become our own enemy as we try to get kick by doing bar by bar analysis and trying to decipher majority of price action (which is random for me as i have mentioned in the previous post).
we have to find a midway, so that we will not loose our objective of making money in day trading and also get intellectual kick/satisfaction. instead of doing bar by bar analysis on each bar and trying to read and analysis every price, find the key levels or areas where we need to do such analysis and take a trade there keeping in mind the overall price structure on the chart.
day trading is all about anticipation and prediction about price. one who says, "i dont know what is going to happen on next bar or in next x amount of time, and i only know what has happened as off now", is not telling the truth or is not aware of the truth. any trade taken by such trader is also with anticipation of making money. if long he/she is anticipating that price will go up. if there is no anticipation/prediction/expectation then there is no profitable trading or there is no trading at all.
price action reading helps in anticipation. a day trader should know when price is ranging and when its trending at what price level there will extension in price range. is the current day a range extension or contraction, if it is range extension to what level price may go if it range or bracketed price what are the extremes. how it will impact the next day price action.
one should have some short of bias before the opening and with opening he/she must be flexible enough to keep adjusting his/her bias. one should be well aware about level where the bias get confirmed by price or where some adjustment is needed or where one has to completely reject the bias and start making new biases. this whole working does not guarantee profits always but keeps the trader far up in the game of day trading.
approaching the day randomly will generate random results at the eod ( with certainty of blowing account), approaching the day with plan, will generate planned results most of the time. and price action helps in planning the stuff mentioned above.
we all have "chool" or "keeda" or desire to be intellectually right. well in routine life its gives one an ego booster to be intellectually right in society. those brownie points to be right in an argument or debate are wonderful things to have in life. but when it comes to reading price action such things become our own enemy as we try to get kick by doing bar by bar analysis and trying to decipher majority of price action (which is random for me as i have mentioned in the previous post).
we have to find a midway, so that we will not loose our objective of making money in day trading and also get intellectual kick/satisfaction. instead of doing bar by bar analysis on each bar and trying to read and analysis every price, find the key levels or areas where we need to do such analysis and take a trade there keeping in mind the overall price structure on the chart.
day trading is all about anticipation and prediction about price. one who says, "i dont know what is going to happen on next bar or in next x amount of time, and i only know what has happened as off now", is not telling the truth or is not aware of the truth. any trade taken by such trader is also with anticipation of making money. if long he/she is anticipating that price will go up. if there is no anticipation/prediction/expectation then there is no profitable trading or there is no trading at all.
price action reading helps in anticipation. a day trader should know when price is ranging and when its trending at what price level there will extension in price range. is the current day a range extension or contraction, if it is range extension to what level price may go if it range or bracketed price what are the extremes. how it will impact the next day price action.
one should have some short of bias before the opening and with opening he/she must be flexible enough to keep adjusting his/her bias. one should be well aware about level where the bias get confirmed by price or where some adjustment is needed or where one has to completely reject the bias and start making new biases. this whole working does not guarantee profits always but keeps the trader far up in the game of day trading.
approaching the day randomly will generate random results at the eod ( with certainty of blowing account), approaching the day with plan, will generate planned results most of the time. and price action helps in planning the stuff mentioned above.
9-5-19
bnf
price opened below yday range and at lower value area. responsive buying immediately came at val. first hour range is approx 100 points, which is quite tight . there is a possibility of range extension today. expecting 320 points range for the day.
sentiments are continue bearish strong short covering needed to change the price structure 29199-29305 may be range extension tgt if it happens current game is look for long. there was long with double bottom at lod. bias is may see short covering if not price may trade between value areas
key level to watch out if first hour range high/low
bnf
price opened below yday range and at lower value area. responsive buying immediately came at val. first hour range is approx 100 points, which is quite tight . there is a possibility of range extension today. expecting 320 points range for the day.
sentiments are continue bearish strong short covering needed to change the price structure 29199-29305 may be range extension tgt if it happens current game is look for long. there was long with double bottom at lod. bias is may see short covering if not price may trade between value areas
key level to watch out if first hour range high/low
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