Thoughts on Day/Swing Trading

[DanPickUp]

Hi Dev Morkerji

Sure I remember you. Have seen some post of you, but not on patterns.

The link from Bullkowsky is a link. How each one is using this link is his choice.

There is a lot of information about many different patterns and that is why I like and posted the link.

How do I use patterns?

If I even recognize one, I watch it and keep an eye on it. As there are so many, I am only interested in flags, triangles, double and triple bottoms and tops.

I think what you mean is: Do not make your trading decisions only build on them and I absolutely agree with you in that point.

I am not here to question your experience. Hope this point is clear to you. What ever you experienced, it is yours and hopefully you got over it and are again moving in the green.

If it comes to pattern trading, my favorite person is Linda Bradford. She openly declares here as a triangle freak.

Now you can imagine my favorite pattern.

I wish you a nice evening and take care

DanPickUp

 

[Smart_trade]

No issues Dev ....trading is a mind game and we all trade our beliefs and what we believe as true and suits our mental set up that is what we trade....

If you dont like patterns...fair enough....I am sure being a senior member of our forum you have your methods which work for you......you will have your success in those methods in which you believe.....

Good luck with your trades....Best wishes,

Smart_trade

 

[Smart_trade]

One more day...today again the gap between VWAP and NF after 2:00 was indicating that bulls are trapped and soon they will run here and there for cover.....and we must position ourselves in short trade in Nifty futures to take full advantage of that panic...which happened in the end....this difference gave us confidence to hold our short positions till the end and get full advantage from the juicy trade.

Smart_trade

 

[last-air-bender]

One more day...today again the gap between VWAP and NF after 2:00 was indicating that bulls are trapped and soon they will run here and there for cover.....and we must position ourselves in short trade in Nifty futures to take full advantage of that panic...which happened in the end....this difference gave us confidence to hold our short positions till the end and get full advantage from the juicy trade.

Smart_trade

Please explain this in more detail. Also please tell me whats the significance and usage of VWAP

 

[Smart_trade]

Please explain this in more detail. Also please tell me whats the significance and usage of VWAP

Kindly see post no 485 onwards of this thread. Link given below :

http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-49.html

Smart_trade

 

[trump]

SQUEEZE THE LAST DROP OF THE JUICE ........GO FOR THE KILL

This is one trading technique which I use very regularly and I wanted to share the same with all. At 2:40 -45 I was long in Nifty Futures and the market was looking strong. I had to take a decision whether to book some profits there or wait till the end.

We play on simple technique that find out which is a side which is trapped and how much are they under water. At 2:45 the weighted average of Nifty future was showing 5035-40 whereas NF was quoting at 5085....a clear gap of 40-45 points. This means that the market is heavy at the bottom or lots of trades have happened below 5035 ......and the longs are comfortable but shorts are now feeling the heat. They will come for covering their short positions......also at 3:10 the brokerages will square off all loosing positions which are not covered by margins. So here instead of booking profits add on every dip ......the bears are dieing to cover their short positions.

After 3:10-3:15 there is panic in bear camp.......the die-hard bears come to cover after 3:20 and it is adding fuel to the fire. We just have to watch market going up like a rocket.....last 20 min give us a very quick move up.......and we get best price when the bears say " damn.....cover at any price...." and that is where we liquidate our long position built up anticipating this to happen.........it is a fun to trade this move.......

Smart_trade

I dunno, but when both bulls and bears are looking for the dip, that dip won't come in real sense, since with a dip the bulls would add and bears would cover means buy, so both buying would push up the price , so there wouldn't have been many dips , so how you have added, and if there would have been dips continuously then the trend would have changed from bullish to bearish.
more over the weighted average price doesn't mean that price would have to revert back to that mean .
I may be wrong in my thoughts, or am I missing something.

 

[Smart_trade]

I dunno, but when both bulls and bears are looking for the dip, that dip won't come in real sense, since with a dip the bulls would add and bears would cover means buy, so both buying would push up the price , so there wouldn't have been many dips , so how you have added, and if there would have been dips continuously then the trend would have changed from bullish to bearish.
more over the weighted average price doesn't mean that price would have to revert back to that mean .
I may be wrong in my thoughts, or am I missing something.

Here the market was going up and bears were trapped....in a dip bears want to cover short positions and bulls want to add....therefore you wont get deep corrections.....but 8-10 points correction one gets in nifty futures and the market goes on to make new highs again.....the bears don't cover in this dip because they start feeling that the trend has changed to down and they will get their entry price.....sometime they even add to short positions for averaging....the covering happens when the market starts galloping and bears no longer can bear the losses....

Market will revert to its mean over long time....but in shorter time the greed and fear dominates and it does not revert to its mean....just have a look at yesterday's Nifty futures chart...the market did not revert to the mean and closed 52 points below its VWAP.....we are encashing on this...

Smart_trade

 

[techtrader2]

Today looks like another day where ST's VWAP strategy working well! Good one ST!!

 

[trump]

Here the market was going up and bears were trapped....in a dip bears want to cover short positions and bulls want to add....therefore you wont get deep corrections.....but 8-10 points correction one gets in nifty futures and the market goes on to make new highs again.....the bears don't cover in this dip because they start feeling that the trend has changed to down and they will get their entry price.....sometime they even add to short positions for averaging....the covering happens when the market starts galloping and bears no longer can bear the losses....

Market will revert to its mean over long time....but in shorter time the greed and fear dominates and it does not revert to its mean....just have a look at yesterday's Nifty futures chart...the market did not revert to the mean and closed 52 points below its VWAP.....we are encashing on this...

Smart_trade

You are saying that the market was up and bears were trapped,again you say that when you say that

the bears don't cover in this dip because they start feeling that the trend has changed to down and they will get their entry price.....sometime they even add to short positions for averaging.

, that will not be the case IMO, they would cover at every opportunity.
In a kind of market when the bias is up , the corrections which aren't deep enough are just retracements, else its side ways with no clear trend.By the way , market does not have to revert to its mean even on a long enough time scale, it may be other way round, there is a difference between average and mean for sure.By the way why only VWAP, any random line one sketches on the chart, the price may be away from it.Have you tested the VWAP strategy ?

 

[trump]

Today looks like another day where ST's VWAP strategy working well! Good one ST!!

Is it just another day or one day among many such days?
How many days have you tested , can you please enlighten. Don't get me wrong since I have experienced it many a times that it simply didn't work.