Thoughts on Day/Swing Trading Part 2

DanPickUp

Well-Known Member
#1
1. What reversal value we should keep for P&F? I changed from 3 to 5 charts looks completely different. So it depend on for which market we are using it for?

2. How to interpret sequence & alphabets as mentioned in below chart?

3. How to interpret lines drawn ?


http://img545.imageshack.us/img545/2206/72674875.jpg

Hi Trade4joisar

First of all: I am not a very in dept P&F specialist. Have had some education on it. The purpose of that education was to be able to use P&F for very practical usages and not in dept as a technical analyst.

1. There is no just one possibility as different markets and different time frames have there own box size and reversal amounts. What I do when using P&F: I play around with it and the picture which makes most sense to me, is the one I use. For small time frames quit useful to see the S&R levels. Bigger time frames show the S&R quit nicely even with bars when changing the periodicity to three days, five days and bigger time frames. By the way: I use Metastock Pro as charting software and they offer a lot in this software.

Traditional P&F settings: http://i45.tinypic.com/357qelh.png

Reversal explained: http://i50.tinypic.com/2ptse4i.png

2. No idea what's behind it. Doe's the page you got this pic from not explain what they want to explain with that?

3. Maybe trend lines. But also here: No explanation on the page given? What I can see: Those lines always cross a rectangle exactly through the middle.

Good trading

DanPickUp
 
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trade4joisar

Well-Known Member
#2
Re: Thoughts on Day/Swing Trading

1. What reversal value we should keep for P&F? I changed from 3 to 5 charts looks completely different. So it depend on for which market we are using it for?

2. How to interpret sequence & alphabets as mentioned in below chart?

3. How to interpret lines drawn ?


http://img545.imageshack.us/img545/2206/72674875.jpg

Hi Trade4joisar

First of all: I am not a very in dept P&F specialist. Have had some education on it. The purpose of that education was to be able to use P&F for very practical usages and not in dept as a technical analyst.

1. There is no just one possibility as different markets and different time frames have there own box size and reversal amounts. What I do when using P&F: I play around with it and the picture which makes most sense to me, is the one I use. For small time frames quit useful to see the S&R levels. Bigger time frames show the S&R quit nicely even with bars when changing the periodicity to three days, five days and bigger time frames. By the way: I use Metastock Pro as charting software and they offer a lot in this software.

Traditional P&F settings: http://i45.tinypic.com/357qelh.png

Reversal explained: http://i50.tinypic.com/2ptse4i.png

2. No idea what's behind it. Doe's the page you got this pic from not explain what they want to explain with that?

3. Maybe trend lines. But also here: No explanation on the page given? What I can see: Those lines always cross a rectangle exactly through the middle.

Good trading

DanPickUp
Thanks Dan.

I am using ChartInk.com for P&F chart. It does not have any information on 2nd & 3rd point.

I will look into link you have given.
 
#4
Re: Thoughts on Day/Swing Trading

I have traded this on Nifty Fut and Bank Nifty fut for number of years. Not traded on stocks but I guess the same logic should apply. Do some backtests before you start trading it. Just eyeballing the charts will give you fair idea about its success on stocks. Bull/bear squeeze should work well in stocks too...

Smart_trade
sir ji as i told you i traded my last 4 years only by MM and discipline no technicals:mad: so sir ji need your gyan i am reading this thread from beginning. hope will get more out of it.
 

murthyavr

Well-Known Member
#7
Re: Thoughts on Day/Swing Trading

For VWAP to work effectively:

1. A reversal has to take place during the day

And

2. Difference between CMP and VWAP has to cross 35 level (in case of NF)

---

Yesterday, the reversal at 02:25 stopped at prior day's close. Had it continued
further down, then VWAP might have come into play.
 
Last edited:
#8
Re: Thoughts on Day/Swing Trading

For VWAP to work effectively:

1. A reversal has to take place during the day

And

2. VWAP has to cross 35 level (in case of NF)

---

Yesterday, the reversal at 02:25 stopped at prior day's close. Had it continued
further down, then VWAP might have come into play.
Yes, TP/Murthy/Shantala......in NF VWAP and price difference has to cross 35 which did not happen yesterday. Had it crossed 35 and held for 2-3 bars then VWAP would have triggered a trade.

So no VWAP trade yesterday...

Smart_trade
 

Shantala

Well-Known Member
#9
Re: Thoughts on Day/Swing Trading

Thanks for explanation, cleared my misunderstanding. When nifty was made high around 93, vwap was around 67, placed sl at 68 and covered at 48. I failed to consider 35 pts gap.
 
#10
Re: Thoughts on Day/Swing Trading

i found a useful abstract for Mapping the trend
Some time, we find all the right signs for a trade but we get stopped out. Why? The answer can lie in the use of higher time frames. Just increase your time frame. If you are trading in 60 min chart then have a look at the EOD (daily) chart.

If a stock is trading in a range in EOD chart then it will become more difficult to maintain a consistent trend in 60 min time frame.

Study long-term charts. Analyze weekly and daily charts. A larger scale map of the market provides more visibility and a better long-term perspective on a market. Once the long-term has been established, then consult the intra-day charts.

A short-term market view alone can often be deceptive. Even if you only trade the very short term, you will do better if you're trading in the same direction as the intermediate and longer term trends.
 

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