Some important posts

sangram1705

Well-Known Member
#2
many members have given good inputs on your questions. I wish to add a few points as under :

1) profit taking is very important part of any trade managemet.it is the part which makes money for us.

2) profit booking is both science and an art.

3) all good traders are good at booking profits.

Now we come to daytrading. Here we have to strike a very delicate balance between letting profits run and grabbing profits aggressively. Few points to consider while booking profits are as under :i will just mention the points , a few posts can be added on each of these points.

1) market volatility and range: If the market ( nf) say is giving 120 points range every day, then booking profits in 20 points is booking too early....but if the range is 50-60 points then 20 points is a good move.

2) trending /sideways day we have at hand : In a trend day we have to hold the positions and add to them and hold till the end....trend days normally end very near top/bottom of the days range.

But in sideways days we have to book profits more aggressively. Else the market will reverse and the profit will disappear.

3) important supports /resistances: Important supports /resistances such as tdst levels,major pivot highs/lows, sequential low risk sell/buy areas,vwap and the vwap bands etc

4) rejection and failures : Rejection and failures at important pivot highs/lows and support/resistance areas will give a clue to book profits.

5) market activity : Observing market activity at important pivots can give a good clue for profit booking....if the market starts making small bars which intertwine with each other then it is a sign to book profits. On the contrary if the levels are broken effortlessly then hold on to your position.

6) steep rise/fall: After a sustained rise and fall, we get a steep rise or fall and big bar, that is a sign of a selling/buying climax. Grab the profits there.

7)some important price patterns like hammers and inverted hammers, hanging man,engulfing bars coming at important levels after sustained rise/fall also gives great clues for profit booking.

8)power of 9: After making 9 buy/sell set up bars the market will take a correction...so trail the profit taking at low/high of each successively higher/lower bars. Market also has a tendency to make short term top/bottom after every 5 bars in one direction...this observation is for any timeframe.

The above are just mentioned to give you a template to think and work on your profit taking. Many people follow booking 1/2 qty if trading nf in 20 or 30 points and trail the remaining half.

Smart_trade
profit booking
 

sangram1705

Well-Known Member
#3
profit booking

q:
st da,

i trade pivot breaks in on 5 tf in direction of htf trend.i m able to get good entry trades and also able to cut my losses short when trade is not working or when breakout fails.

I m unable to take profits at appropriate level ,some times i exit so early catching only 20% of move or sometimes i wait ,losing all my profit.i get into a state of dilemma.

Please advice some logical take profit strategy to be incorporated in my system.

Thanks in advance.
 

sangram1705

Well-Known Member
#4
Question: ATP
ST, what would be your interpretation if the ATP is close to LOD, or HOD ??
answer
ATP close to LOD indicates that most of the volume has taken place near the LOD and on the rise it does not have large volumes. But if the close of the day is approaching and the price is much above the ATP that means that people who have shorted at the lower levels, will start feeling the heat and they will come to cover their short positions. Bulls in this case are comfortable.

Mirror image for ATP close to HOD..with bearish implications.

Just see who is loser group in the market and who is a winner and join the winner group....

Smart_trade
 

sangram1705

Well-Known Member
#5
Q: Time
Nifty futures didnt break swing low after 1130 am, any significance this may have? guys what your experience says ?

Also have a doubt regarding swing low/high break. For eg todays nifty futures 1012 am low(8460.4) broke 954 low of 8461, now i know the significance of 2nd low breaking 8460 as it would attract more orderflow but how significant is break of 8461 or any other level like this which is not a multiple of 5 ?

From price action point of view how you would analyze move from 940 to 1050 am ?

Please share your views.
Reply
Todays small gap up opening was a breakaway gap...the smaller degree uptrend had just started. It is my experience that if the market does not sell off by 11:30 then rest of the day it builds on strength.Same thing happened today.

Today all intermediate pivot lows were held and none was broken.Couple of smaller pivots lows were broken in the form of smaller degree downmove in larger degree upmove.

I dont know whether you are asking from point of view of Al Brookes etc but the price action which I follow, the move from 9:40 to 10:50 am is continuation of uptrend which started yesterday in the afternoon and after breakaway gap open today.

Smart_trade
 

sangram1705

Well-Known Member
#7
v shaped reversals


V shaped reversals are based on selling climax and the fact that the last seller has sold. For catching V shaped reversal we must see the following :

1) The market has a sustained trend move, few large range bars.

2) The last leg of the move should be very sharp indicating possible capitulation or climax.

See the chart, here we locate a pivot low P bar, and go one bar back ( P-1) if the high of this P-1 bar is higher than the high of P bar, it it is not ,then we go to P-2 bar and when the high of the P-1 or P-2 bar is taken out by the market, we buy with a stoploss of pivot low.The chart shows green line indicating buy level.

The same method can be used for profit booking if we are short....book profits on high of P-1 bar. In steep downmove, we trail the profit taking on high of each successively lower bars so profit taking can be done on high of P bar..
http://s24.postimg.org/gdluikkyd/V_shaped_reversal.png
Smart_trade
 

sangram1705

Well-Known Member
#8
HOW TO IDENTIFY A TRENDING DAY

I had posted silmilar post in miniflow thread some months back,tried to locate it but it seems to have got burried...

Nobody can identify a strong trending day before the day starts...but as the day's market action progresses, it can be identified with fair accuracy. Some of the tell-a-tale signs of strong up trending day are as under : Mirror image for down trending day.

1) Strong up day starts near the bottom of the day's range and closes near the top of the range both within bottom/top 20%. This means that the market does not retrace much after opening and quickly gets down to its business.

2) Strong up days are made of 1-2 Wide Range Bars ( WRBs)with large volumes.

3) In up trending day the rallies will be have more volumes than declining bars.

4) In uptrending day, there are no frequent reversals.

5) Market overall is strong and broadbased meaning there is strong move in many stocks/indices.

6) In uptrend day market does not retrace much....retracements are small and market gains the retraced ground fast.It is my thumb rule that if the market in-between retraces more than 25 points in Nifty Futures from its intraday top,chances of strong up day are remote.

7) In strong up day market gallops after 2:00 -2:30....and rises very fast from 2:45 to 3:10....and may retrace some ground gained afterwards.

We daytraders must have some large trend days on our side ,where holding till end and adding on every dip is all we need to do , to keep us on winning side.

Best wishes,

Smart_trade
trnding days
 

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