Rip07- Notes

rip07

Well-Known Member
#1
Hello friends!!!

Reason of starting this thread coz so much GYAN is here n there, and it is difficult for me to go back to those threads and look for specific post which I am looking for. So, I am starting this thread for my own sake to help myself in order to save time and improve my trading.

If somebody would like to add some useful GYAN, most welcome!!!

Thanks
rip07
 

rip07

Well-Known Member
#2
Demand and Supply: From @Xray
(http://www.traderji.com/technical-analysis/99967-demand-supply-zone-trading-3.html)

Rules are

1. we should cover max. points of the retest/rejection

2. it should be most recent levels/area

3. Candle bodies should not cut when we mark the zone at max ,i'e we try our focus on max at rejection points if in this process we may pass
through one or two candles.

Imp: This concept is not complete with out what is called Zone shift. When price moves from previous supply area on upside then the supply area will turn into demand and vise versa ,this is called zone shift. Always remember most recent action is important.

How to draw SD Levels:

http://www.forexfactory.com/attachme...0&d=1402652572

http://instaforexpips.com/naked-trading-with-supply-demand-strategy/

The supply demand paradigm, in terms of price movements consists of four basic types – as follows, with a brief description:

Drop-Base-Rally: Low demand and high supply drops prices to a base of equilibrium. After which demand rises and supply falls causing a reversal rally.
Rally-Base-Drop: High demand and low supply pushes prices up to a base of equilibrium. After which demand falls and supply rises causing a reversal sell off.
Rally-Base-Rally: High demand and low supply pushes prices up to a base of equilibrium. After which demand increases and supply evaporates causing a continuation rally.
Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.

to be continue...
 

rip07

Well-Known Member
#4
How to recognise Sideways and Trending markets?

Trending and sideways phases are cyclic in any market and after a trending phase expect a sideways phase and after a sideways phase expect a trending phase.....if there is anything certain in the markets ...it is this.

Traders make money in trending phase and give it back in the sideways phase....sometimes they loose more in sideways phase. Every trader has to understand how he is going to negotiate the sideways phase so that he makes some money in it or at least preserve what he has made in a trend and again ride the trend when the market starts trending again...

How do we know that we are in sideways markets ? The charts will indicate that. I have taken an example of Nifty Futures 5 min chart.....we had a nice downtrend till point A , then we had an up move upto point B.....the first indication of sideways market came when at point C market was unable to take out point B...then D,E,F,G all sideways moves till we get a breakdown of the range.....

Traders handle sideways phase in different ways depending on what he is comfortable with ...various ways of handling sideways phase are as under :

1) If you are a range trader, trade the extremes of sideways range....buy near the bottom of the range and sell near the top....

2) Decrease your volumes in sideways phase and increase back to normal volumes when trend starts.

3) Trade on sideways market indicators, oscillators, Bollinger bands extremes etc

4) Totally stay away in sideways phase and trade only trending phases....


So in this range either trade the extremes or just stay out and dont loose your capital and energy trading sideways markets......get on to trends when they start again.....

Smart_trade


Thanks
Ri07
 

rip07

Well-Known Member
#6
Good thread about AMA by vijay--Thanks Vijay

Objective of the system : Early entry in the trend, ride the trend, exit at any sign of trend exhaustion.

Rules of the system

1. 15 min ama bands will be used to determine the bias/direction.
2. Price trading above AMA = look for long entry.
3. Price trading below AMA = look for short entry.

4. Price trading inside 15 min ama bands will be considered as sideways .
5. Trading within bands is bit risky as the direction may change without giving proper signals.

Entry setup:-
Long - we will enter at end of decline and start of rally
Look for inverse palm of hand pattern, i.e look at any previous 5 candles. 1st two candles should be red and lower lows and lower highs is compulsory
3rd i.e middle candle must have lowest low out of all 5 candles. any color
4th and 5th candle must be green in color and higher lows and higher high is compulsory.
Enter on 6th bar, if 5th bar high is crossed.

Short - we will enter at end of rally and start of decline
Look for palm of hand pattern, i.e look at any previous 5 candles. 1st two candles should be green and higher lows and higher highs is compulsory
3rd i.e middle candle must have highest high out of all 5 candles.
4th and 5th candle must be red in color and lower highs and lower low is compulsory.
Enter on 6th bar, if 5th bar low is crossed.

Point to note : This 5 candle setup is future looking, ie after completion of 5th bar only the setup is complete.

Also point to be noted is that the 3rd bar will be minor pivot according to ema pivots.

http://www.traderji.com/trading-diary/101344-trading-ama-price-action-forward-testing.html

Thanks
rip07
 

rip07

Well-Known Member
#7
Again interesting from vijay thread--Thanks

http://www.traderji.com/trading-diary/100893-my-trades-based-new-way-pivot-trading-vwap.html

Rules of my trading strategy is as follows:
Vwap strategy

VAH - +1SD level at close yday Horz RED Dotted Line
POC – VWAP level at close yday Horz Black Dotted line
VAL - -1SD level at close yday Horz Green Dotted Line
one Std Dev covers 68.2% of the trades around VWAP and two std dev covers 95.5%.

so if mkt sustains above or below +1SD and -1SD it means then one side is stronger and is able to extend the range = trend,
but around VWAP to +1SD to -1SD both buys and sellers will be fighting= sideways.

+2SD and -2SD being close to 95% of range becomes overbought and oversold zones for some pullback buy unless +1SD / -1SD is violated one side is still strong.

1. Price in range between VAL and VAH
Neutral bias....buy VAL sell VAH.... or +1SD and -1SD of day until bias builds

2. Above VAH
+ve bias above -1SD day level.
Buy pbs upto -1SD day levels and 3min/15min bands.
BD of -1SD day could mean a pb to VAH and then depends what it does there.

3. Below VAL
-ve bias below +1SD day level.
Sell pbs upto +1SD day levels and 3min/15min bands.
BO of +1SD day could mean a pb to VAL and then depends what it does there.

Note: Rules of the above strategy is quite exhaustive and I have included only few points. Will update my strategy as and when my experience increases.

Thanks
rip07
 

rip07

Well-Known Member
#8
Imp: from ST sir--Thanks
When the market is sideways on daily timeframe and if this sideways range is large enough or tradeable in smaller timeframes we dont have a trend bias. Near the low of the range, market reverses direction and goes up in uptrend in smaller timeframe and near the top of the range it reverses to down and then smaller timeframe downtrend takes over.

At the beginning of the day, our bias is always the trend in motion till now....as the day progresses, market opens its cards more and we get more visibility. Market is in a particular up or down trend till proved otherwise...and the trends can change during the day too. A daytrader should be alert to such changes occuring during the day. In sideways markets, VWAP bands will be of help...in trends pivots and higher tops/higher bottoms or lower tops/lower bottoms will help our trading decisions. There are many tell-a-tale signals which an alert trader can pick up from the market's behaviour before market reverses its trend.Market always gives us many signals before it makes its move.We either dont catch those signals or dont listen to them.

Smart_trade

Thanks
rip07
 

rip07

Well-Known Member
#9
Useful post: about Pivot
Da, please correct my understanding.



In image 4 break of 2 is not a minor UT.
Here we go...

I am assuming all pivots to be minor pivots which may get upgraded
to visual pivots based on the market action.


Figure 1 :: This is simple. We closed below the ERL marked in green and also broke the highest mpl so minor downtrend has started.( Any one of these conditions will confirm minor DT.

Figure 2: At (a) we closed below the green ERL which means minor downtrend has started so the high of the move becomes VPH

Once we close above the ERL at (b) that means minor uptrend has started making point (a) as a VPL and when we break this point (A) we are now in a Visual downtrend

Figure 3:: After A when we either close below green ERL or go below the minor pivot and come to B,that means minor downtrend has started thus making point A as VPH

Price closing above the red line has no significance.But if it closes above the green ERL then B becomes VPL.

But as we have broken C on the upside,we have started minor uptrend. Now our attention points are A (VPH) and B (VPL) .If A is taken out, then we have resumed/started visual uptrend, but if B is cracked,after making lower high,then we start visual downtrend with lower VPH and VPL.

Figure 4: B has closed below ERL so A and B are VPH and VPL.Between A and B we have sideways move.

When Z breaks A we have higher VPH but VPL is firmly at B .When we go below B we take a short trade because we are now in a possible or likely visual downtrend and in our method we trade possible visual downtrend on break of VPL as visual downtrend confirmation will be too late.

Break of 2 is a minor uptrend making point 1 as VPL.

Trust the above helps ( and there are no typo errors :D)

Smart_trade
Thanks
rip07
 

rip07

Well-Known Member
#10
First thread I encountered at the time of joining:: thanks Subhadip
Rules of Intraday Flow method: (IDF)

I have learned it from Saint sir, Kapil Sir, Pratap Sir & ST Sir,

IDF trades the minor trend in the direction of visual trend in 5 min chart.

5 min chart used for all index & scripts.

To understand the visual Pivot at 5 min TF, I look at PHs and PLs in 15 min chart. Every pivot in 15 min chart is a visual pivot in 5 min TF. From experience you can do it in 5 min chart itself.


Go long/short at Visual Pivots. Exit at minor pivot break. If 60 min clsoing at known support/ resistance also exit.

Adds on Minor pivots.

Opening trade:
If open in yesterday's range:- in Direction of Flow 30 enter on break of Yesterday's pivot. Against Direction of Flow 30 wait for a 5 min pivot above it or go long/ short above/ below the bar that gives a 15 min close above or below it.

Sideways: Nothing to do. Close outside bodies of sideways and then go long/ short above high/ below low of that bar.

Flags: nothing to do. Trade the Break out & Break down.

Profit booking: Support & Resistance.


Now yesterday Visual UP Condition:
1. Gap up above VPH; go long over mPH over 1st Bar.
2.Open/ Gaps down into range but above Visual ERL: Go long over mPH (When minor trend alligned MPH).
3. Opens/ Gaps down into range but below visual ERL: Go long above VPH; go short below VPL
4: Gaps down below VPL: short on a pivot below 1st Bar.


Now yesterday Visual Down:
1.Gaps down below VPL: Short below minor pivot below 1st Bar.
2.Opens/ gap up into range but below visual ERL: short after minor trend alligned to it.
3.Opens / Gaps up into range but above visual ERL:Go long above VPH: Go short below VPL
4. Gaps up above VPH: Long on a pivot; Short below pivot if 1st Bar moves into range

Visual Sideways Days:
1. open in range- go long avove VPH; go short below VPL
2. Gaps above VPH: long over minor pivot;
3. Gaps below VPL: Short below minor pivot.
When to go long:
1. Price in Visual Uptrend- comprising of Higher VPH & Higher VPL
2.Price pivoting above visual ERL of the downtrend.
3. In Visual Sideways, we will wait for an mPH to be formed above ERL

When to go Short:
1.Price in Visual Sideways;
2. Price pivoting below Minor ERL or Visual ERL
3.In Visual Sideways: we will wait for an mPL to be formed below ERL.

When nothing to be done:
When price enters Visual Sideways .
Thanks
rip07
 

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