Thoughts on Day/Swing Trading

[sibumajumdar]

This gap is valid because the green bar is an aggressive pivot. But more than the pivot , what we are looking at is after breaking the pivot low, in a bounce move how high the market goes. If it is unable to go in the pivot low broken area,then it leaves a gap and shows weakness in the market and indicates that the downmove will accelerate.

So after breaking the low of the green bar , we knew that the bounce could go only as high as the green bar aggressive pivot high which was an inside bar......which shows tremendous weakness and (indicated that the market will drop like a hot potato )the market downmove accelerating ....which it did.

Smart_trade

Dear ST Sir,

Thanks a lot because your clarification will guide me to take opportunity in similar development without 2nd thought. One more small query regarding EXIT for the same chart.....is it correct exit while taken out of pivot high of red bar by last green bar ?....Thanks again.....SLMuncle

 

[Raghavacc]

Dear Raghav,

I got a very clear idea about STda's GAPS from your thread where you explained it with bar lines in a very simple way & thanks for the same. But i have a query to get cleared from you....

You have marked gap lines between break dn Pivot Low & top ( not PH ) of green bar which is neither a rally nor a sideways PH but simply a print of AP ( or iam missing something ) . My doubt, is this gap valid. Please help me to get my doubt cleared.....Thanx again....SLMuncle.

Dear Sibu,

I think ST Bro has cleared your queries to your satisfaction.

Let me add little bit to it.

In a trend as a price action trader what I look for is "how strong the opposition is?" to take any trading decission.That can be gauged from the action arising out of pullback.

Above is the today's 5 Min chart of Nifty

5000 is a big Round Number and any one with general sense expect a pullback from this level.Since the down trend is heavy we always look for reversal. It comes at 5100 odd levels.

In the above chart,after 3 red bars fourth one Bar "A"is a clean shaven big red bar.No lower wicks means the selling pressure is heavy or buyers are scared of buying.

Bar "B" is a reaction by bulls .Just look at upper wicks.It indicated Bhaloo's are putting heavy pressure and are not allowing bulls above 5100.Once this candle is called I place my order below the low of candle (5085).S/L is the high of this candle + 3 points filter (5099) means In a high volatile market I am taking a trade with 13 points S/L.Thats futures trade.

Here we emphasize on pullback, its strength and the result.Hence in my opinion it does not matter whether this pullback is of one candle or of 5 candles.Also a pullback need not necessarily consist of a rally or sideways action.

Once the candle "C" breaks low of candle "B" my Futures sell order gets activated. Now lets look how I trade options intraday.Bar "D" and "E" are rabbits .They do not have strength.They are unable to cross the low of bar "B".Once the low of "D" is taken out its a double confirmation that Bhaloo's are rampant and not going to stop .Thats where I buy 5000PE.

If you do these kind of systematic trades,no doubt your capital will grow exponentially, especially in this type of highly volatile and rewarding market.

 

[sibumajumdar]

Dear Sibu,

I think ST Bro has cleared your queries to your satisfaction.

Let me add little bit to it.

In a trend as a price action trader what I look for is "how strong the opposition is?" to take any trading decission.That can be gauged from the action arising out of pullback.

Above is the today's 5 Min chart of Nifty

5000 is a big Round Number and any one with general sense expect a pullback from this level.Since the down trend is heavy we always look for reversal. It comes at 5100 odd levels.

In the above chart,after 3 red bars fourth one Bar "A"is a clean shaven big red bar.No lower wicks means the selling pressure is heavy or buyers are scared of buying.

Bar "B" is a reaction by bulls .Just look at upper wicks.It indicated Bhaloo's are putting heavy pressure and are not allowing bulls above 5100.Once this candle is called I place my order below the low of candle (5085).S/L is the high of this candle + 3 points filter (5099) means In a high volatile market I am taking a trade with 13 points S/L.Thats futures trade.

Here we emphasize on pullback, its strength and the result.Hence in my opinion it does not matter whether this pullback is of one candle or of 5 candles.Also a pullback need not necessarily consist of a rally or sideways action.

Once the candle "C" breaks low of candle "B" my Futures sell order gets activated. Now lets look how I trade options intraday.Bar "D" and "E" are rabbits .They do not have strength.They are unable to cross the low of bar "B".Once the low of "D" is taken out its a double confirmation that Bhaloo's are rampant and not going to stop .Thats where I buy 5000PE.

If you do these kind of systematic trades,no doubt your capital will grow exponentially, especially in this type of highly volatile and rewarding market.

Dear Raghav, Thank u very much for the chart with elaboration but me in a hurry to move hence unable to bother u with my silly queries. I shall do it after going through this post a few times.

I like ur own thread very much & gone through last few posts but what i conceived that i need thorough knowledge of Candle stick formation, FIB, Flag/pedant/H&S etc which i am lacking to take full advantage of your thread which is full of learning materials. Meanwhile if u can, plz help me with link/name of the thread or sites where i can devote my time & energy. Reason i have more than enough time to devote for the same as i am retired & willing to spend daily 4 to 6 hours for it.

Sorry brother for long post..I shall do the rest 2morrow.

Thanking U , STda & all others again & Hoping for all the cooperation. One thing can be assured that i am a willing student of you ALL.

Happy trading.....SLMuncle

 

[Raghavacc]

Dear Raghav, Thank u very much for the chart with elaboration but me in a hurry to move hence unable to bother u with my silly queries. I shall do it after going through this post a few times.

I like ur own thread very much & gone through last few posts but what i conceived that i need thorough knowledge of Candle stick formation, FIB, Flag/pedant/H&S etc which i am lacking to take full advantage of your thread which is full of learning materials. Meanwhile if u can, plz help me with link/name of the thread or sites where i can devote my time & energy. Reason i have more than enough time to devote for the same as i am retired & willing to spend daily 4 to 6 hours for it.

Sorry brother for long post..I shall do the rest 2morrow.

Thanking U , STda & all others again & Hoping for all the cooperation. One thing can be assured that i am a willing student of you ALL.

Happy trading.....SLMuncle

Sibu,

I appreciate your humbleness and eagerness to learn even at this age..:clapping:

Indeed you have to have knowledge of Candlesticks .For that you can study few books of Steve Nison. But never ever I used the term "Flag,pendant
,H&S" in my entire thread. I do not believe in complicating life and trading.Please go through the PDF file found in my last few posts and you will get an idea as to what all we make use of.

As far as price action is concerned, I am sorry to say that so far I have not found even a single worthy thread which details practical price action .
The one I have detailed in that thread is my own recipe borrowing and blending vegetables supplied by all these Masters .

I suggest ,out of 4 hours ,you devote 3 hours on chart observations and 1 hour each a day on This thread, "Mydaytrading" thread alongwith "How to trade with an oscillator".Then You can just pick one or 2 ideas /techniques from those thread sand can still be highly profitable.For example ,the one idea I got from Tiger bro is "Intraday Gaps"...A pentastic concept with extreme success.

 

[sibumajumdar]

Sibu,

I appreciate your humbleness and eagerness to learn even at this age..:clapping:

Indeed you have to have knowledge of Candlesticks .For that you can study few books of Steve Nison. But never ever I used the term "Flag,pendant
,H&S" in my entire thread. I do not believe in complicating life and trading.Please go through the PDF file found in my last few posts and you will get an idea as to what all we make use of.

As far as price action is concerned, I am sorry to say that so far I have not found even a single worthy thread which details practical price action .
The one I have detailed in that thread is my own recipe borrowing and blending vegetables supplied by all these Masters .

I suggest ,out of 4 hours ,you devote 3 hours on chart observations and 1 hour each a day on This thread, "Mydaytrading" thread alongwith "How to trade with an oscillator".Then You can just pick one or 2 ideas /techniques from those thread sand can still be highly profitable.For example ,the one idea I got from Tiger bro is "Intraday Gaps"...A pentastic concept with extreme success.

Dear Raghav,

Thanks a lot for your prompt reply with guidelines. Certainly i shall 1st learn CS formation thoroughly before attempting to read 1st to last of your thread "my day trading ". Out of many trading set ups/systems/methods i find PRICE ACTION method most simple, interesting & easy to trade.....hardly require any bombastic SWs or even support/resistance levels. Just we need a pair of keen EYES to press key at PIVOTs & most important is exit which require just desire to take profit without getting scarred (our STda said so in one of his thread). Lastly i hope my PIB charts will be enough to take benefit of this system. This is my view only. Plz do not take any other way.

Thanks again to U ,STda & all other contributors...SLMuncle

 

[EagleOne]

Sibu
Forgive if you find me intruding in your thoughts. Forget PA. It may sound as simple as Ramdev's tall claims to cure gays by yoga!

It is not. It is a bit mumbo-jumbo that hardly can be taught objectively. Call it knack, that comes when you are 'into' the market. Were it that easy to press key at the pivots, every trader would be in profit day in day out. Why isn't that? think about it.

Anyhow, if you want to make a decent profit, stick with simple things like ST does. Also, Steve Nieson's books will put you to sleep, believe me. You only need to know the names, the significance, the relative postions, of no more than 20 candles (information available all through the net, just google). A few patterns, that .Pride has excellent thread on TJ. And of course S and R. Rest you are at ST's thread, you are in safe hands.

You don't need a D.Lit degree to speak a language, got it?

Take care. See you around. Good night.

 

[.Pride.]

don't mean to intrude, but pls give some thought to the following points:

1. don't try to pick tops and bottoms...stay with the trend...we are trading crowd psychology here....if the market is falling, why are you buying?
2. enter with a small stoploss and let your profits run...keep a trailing SL or keep a profit target atleast x2 your SL
3. do not exit completely....exit 1/3 or 1/2 at some point and move SL to breakeven...then let the market do all the work for you...
4. entry is not important...where you exit matters..if I had 1 wish from a genie in a bottle, I would ask: "where do I exit?"
5. you can never capture the whole move...and don't ever try to...
6. each single trade does not matter...you need to look at the big picture...
7. BACKTEST!!! you need to know your profit factor, expectancy, max drawdown...otherwise you will lose faith in your system after a couple of losses...
8. books, seminars, gurus are all fake...they can't help you...if you really want to learn, look at 1min charts everyday from 9:15 to 3:30 for the next 1yr...I promise you, you will start to see "things"....battles between bulls and bears...you will know what is actually going on...
9. I am a bit drunk right now and don't know why I am posting this...so pls do not reply to this post and don't ask any questions

 

[EagleOne]

You posted this because you read my post, Pride. Admit it! . Difference is. I was not drunk (I don't get anyway) when I wrote the post.

But what you said in the post, I agree.
Pride, whoever you are, I like you. Like ST, Raghav, Linkon, SG and all, you want to help people from being losers. I wish I had the time and commitment like you guys. But, hey, I am Eagle. Always up in the air - you'd never know where I choose to land!

 

[EagleOne]

Pride, just having fun! Hope you won't mind!

don't mean to intrude, but pls give some thought to the following points:

1. don't try to pick tops and bottoms...stay with the trend...we are trading crowd psychology here....if the market is falling, why are you buying?

Read Alex Elder. You'd know why people buy in downtrends. And you'd also know a little bit of psychology.

2. enter with a small stoploss and let your profits run...keep a trailing SL or keep a profit target atleast x2 your SL

Small stoploss? How small? TSL works only in trending market. Right now, we don't know. Hell, we never know anyway!

3. do not exit completely....exit 1/3 or 1/2 at some point and move SL to breakeven...then let the market do all the work for you...

You mean, one should enter with multiple lots from the start? If yes, how one should know it is the right thing?

4. entry is not important...where you exit matters..if I had 1 wish from a genie in a bottle, I would ask: "where do I exit?"

Agree. Exits are as importants as entries. Not more important, BTW!

5. you can never capture the whole move...and don't ever try to...

Anyone trying to do so is a fool. Good point.

6. each single trade does not matter...you need to look at the big picture...

Big Picture? What big picture? Only the TF that you are trading is the big picture!

7. BACKTEST!!! you need to know your profit factor, expectancy, max drawdown...otherwise you will lose faith in your system after a couple of losses...

Do you have time to calculate all this while trading, Pride? God, I envy you!

8. books, seminars, gurus are all fake...they can't help you...if you really want to learn, look at 1min charts everyday from 9:15 to 3:30 for the next 1yr...I promise you, you will start to see "things"....battles between bulls and bears...you will know what is actually going on...

What you just said, you are a guru in a way, too. Are you fake? Oh, 1 year on 1 min chart? The only 'things' seen will be the ghosts!

9. I am a bit drunk right now and don't know why I am posting this...so pls do not reply to this post and don't ask any questions

I understand. Only one question, if you don't mind. Which 'Daroo' brand you had. I would love to have it, too! :lol:

 

[sibumajumdar]

Sibu
Forgive if you find me intruding in your thoughts. Forget PA. It may sound as simple as Ramdev's tall claims to cure gays by yoga!

It is not. It is a bit mumbo-jumbo that hardly can be taught objectively. Call it knack, that comes when you are 'into' the market. Were it that easy to press key at the pivots, every trader would be in profit day in day out. Why isn't that? think about it.

Anyhow, if you want to make a decent profit, stick with simple things like ST does. Also, Steve Nieson's books will put you to sleep, believe me. You only need to know the names, the significance, the relative postions, of no more than 20 candles (information available all through the net, just google). A few patterns, that .Pride has excellent thread on TJ. And of course S and R. Rest you are at ST's thread, you are in safe hands.

You don't need a D.Lit degree to speak a language, got it?

Take care. See you around. Good night.

Dear EagleOne, Taken note of ur points with thanx. Just for U & and all other well wishers & contributors i wish to inform that LINKON 07 is my neighbour from whom i learned many things abt trading setup & style. During trading hrs i am on chat with him & i post each & every entry/exit immediately for his comment & guidance. So he knows my capital, Trading setup i follow & mostly daily consistant profit margin though small.

Thanks to all again...SLMuncle