Timepass's notes

[timepass]

An article worth saving ..

The core idea behind every Capitalist regimes is to enslave. There is no better enslavement than a financial one. In that the master does not have to whip the slave, the slave whips himself and gets his rear to work.... else how will he pay his installments... Installments on home, car, vacations, jewellery... list is endless. It is a trade-off, a dear one.

The sharp spike in the property rates have done the home-loaners a great deal good. Now, 99% of city dwellers cannot afford to buy a home without a loan. In fact, rising inflation is a boon to banks and inturn to the RBI and babus. Everybody has a cut, my friend... everybody.

I still prefer the old way of buying stuff, which starts with saving. Let that money grow in FD or ppf. Note, how this is the exact opposite of taking a loan. Here nobody gets a cut.

I wonder if the Islamic states allow bankers to advertise loan products as extensively as it is in India.

 

[timepass]

Saint's terminology for various trading terms, thanks to Manojborle

Abbreviations…...Meaning.
PH……………............Pivot High
PL………………..........Pivot Low

BPH……………..........Body Pivot High
BPL……………...........Body Pivot Low

ERL……………...........Early Reversal Line
VRL……………...........Visual Reversal Line
VisD...………….........Visual Distance

SB………………...........Spring Board Pattern

SOH……………...........Sitting On Hands.
EOM......................End of Move
EOD……………...........End of Day
LTF.......................Longer (Term) Time Frame
f...........................Filter
F or LF.................. Larger filter then normal filter
SL.........................Stop Loss
SAR.......................Stop And Reverse.

PH And PL:
Pivot High And Pivot Low.
PH and PL are our very basic and most important tools in flow trading. If not clear about them then I request you to go through the thread I mentioned in 1st post.

BPH-BPL:
Body Pivot High And Body Pivot Low.
They simply are PH and PL made by the body of candle and not wick.
Usually we look for Body High of a bearish candle for BPH and Body Low of bullish candle for BPL.

VRL-ERL
VRL- Visual Reversal Line.
They are simple reversal points using BPH or BPL instead of PH or PL. That means hear we use body of candle and not the wick for SL or SAR. So in an Up move we use BPL and in Down Move we use BPH.



************************************************** ***************

ERL- Early Reversal Line.
Just like VRL this are also reversal points but here we are using BPH in case of Up Move and BPL in case of Down move for reversal. Now here we don't use every BPH or BPL as reversal point. There is a condition needed to be fulfilled before taking this points as ERLs. And that condition is there should be enough VisD(Visual Distance).

VisD - Visual Distance
Simple as name suggest. A distance from a particular point to another point. Here we need them to identify a valid ERL.Lets take an example of uptrend. Assume we are long.

Price Moves further up. New HHs and HLs. Giving us a rally.

Now price comes down a little. Gives us PH and BPH. Now at this point this BPH is our POTENTIAL ERL. Not even active or not even existing. But potential ERL. To be it an ERL, we need new high which breaks this BPH.

Now we’ve got new high which breaks BPH and makes it an ERL.

BUT…to be an active ERL we need strong close above this BPH. That means we require VisD. A distance from BPH to highest close made. Not necessarily in one bar. May be two or three. But we need a strong move crossing that BPH to make it an active ERL.

Active ERL

SOH……………...........Sitting On Hands.
Many times in Ambush or Miniflow we do not take any position. And waiting for proper place to enter. This we refer as SOH. Means not taken any position. We can be SOH in Ambush or Miniflow only. Not in 30 min flow. Which is always in trade method.
************************************************** *

EOM......................End of Move
Again mostly used in ambush and Miniflow. There are certain patterns which suggest that an ongoing move is nearing to its end. Like large bar with heavy volumes. Or bar closing at it's highest(lowst in case of down move). This signals indicating move is ending...we call them as EOM.
************************************************** *

EOD……………...........End of Day
End of Day means when trading day is nearing to end. That is around 3.25 pm. In Miniflow and ambush we close our position at EOD. That means we exit @ around 3.20-3.25 pm. Or in 30 min flow many times we need to reverse our position at that time. We call them as EOD reversal.
************************************************** *

LTF.......................Longer (Term) Time Frame
Time frame longer then the time frame we are trading. Like in ambush we take our trade in the direction of LTF which is 15/30/60 min. Or in 30 min flow we see LTF that is daily flow to deciede on number of Adds we can take.
************************************************** **

Source: Saint sir

 

[timepass]

For later perusal..

As per pms from some of my traderji friends, posting one of the techniques I use, if there is any constructive criticism will be open for the same. Please take a look if this is of some way of a miniscule use to you

Use two Bollinger bands BB(20,2) and BB(50,2).
Color BB(20,2) as red and BB(50,2) as green.


After doing as mentioned chart will look like the above.
Now I use Bollinger Bands for two things,
1) Gauging market mood.
2) Exit method.

Regular day:


Whenever market opens without gap or with less gap, then it is a regular day. I have shown BNF today’s chart above for 5 min which is my day trading trading time frame. Since looking onto multiple time frames is not comfortable for many, we will consider only 5 min time frame with 21 SMA, ADX(14), volume, BB(20,2) and BB(50,2), these are the indicators we are going to use.

Now, once market starts and first candle has started forming see our 5min chart. For example consider today. We can see that BB(20,2)(RED BB) is within BB(50,2)(GREEN BB) which means market has not started to trend well yet.

Do not take trade till both BBs intersect which tell us two higher tf’s are trending in same direction.

Only on 9:40AM candle both BBs have intersected, so this means we are ready to trade. Now wait for a pivot or in other words swing to form.

Now first swing high is formed(1H), which gets taken out by 2H which is formed on 10:35AM. So, we are long now two ticks over 1H, with SL two ticks below the low of 2H. This is a losing trade and we would lose around 21 points on this trade.

Remember always, since we are using only one TF here, no long when price is below 21SMA and no short when price is above 21SMA when it is a regular day, for gap day there are other rules to follow.

Now, 1st trade small loss, we are waiting for next setup, price has gone below 21SMA line we are now looking only for shorts, look at 1L which is taken out by 2L, before this happens the BBs move away from each other for two candles but have joined together before this break down. So, we can take this short trade again. We have entered two ticks below the low of 1L and SL is two ticks above the high of 2L. Since, this is intraday trend you can notice that BB(RED) is moving within BB(GREEN), don’t worry about this, keep trailing stops.

PLEASE NOTE HERE THAT WHENEVER MARKET IS GOING ON TREND MODE, MOST OF THE CANDLES GET TAGGED TO THE NEAREST BOLLINGER BAND AND WE CAN SIMPLY TRAIL SL WITHOUT TROUBLES.

Please see here, under the yellow quadrant, all prices tag the BB(RED) obliging trend. Suppose a candle is not tagged to BB, please trail SL above the second most recent candle that was touching BB, once BBs are not intersecting trail above every bear candle if your short and below every bull candle if you are long.

2E would have been our TSL that was taken and we would have made around 100 points from this trade.

After this BBs don’t meet each other as trend is not clear. Till now it was easy trading, now we have few rules to trade second half of the day, whenever two BBs are not intersecting each other, make sure to only enter on break out of pivots that are protruding outside atleast single BB. If protruding outside both BB, it’s a high probability trade.

The above condition is satisfied only on 3H break which happens on 2:30PM candle, hence we have entered 2 ticks above 3H with SL two ticks below 2:30PM candle. For every new high made through candle trail profits two candles before(low of second recent candle where second candle high needs to be more than 1st candle high), on our case this would be another 100 point trade.

Today was an easy day hence we had made good points. Now, I am pretty tired, so summarizing thumb rules,

1)Long only when price above 21SMA.
2)Short only when price below 21SMA.
3)If ADX(14) < 16 no trade whatever happens as this mentions market has lost its force in singularity direction.
Since, this method was used by me atleast six months ago, I am not able to remember all the rules I had. If I have missed something I will post it once I remember it.
Can, someone try this for some other day, or give me for some other day to explain if this is not clear.
For someone who was expecting more than this, I am sorry this is what I am using and had used as a part of my system.
For someone who finds this dumb, please ignore the same, I will be happy if atleast one struggling trader gets something out of this.
If someone interested please try this for existing gap day and let me know the hiccup you face, I will try to help you out if it is possible for me to do so.

 

[timepass]

A good one that I missed.. For holiday reading..

Modifying the post to create an Index for easy Navigation, (will add links later)


Longish Term Methods

Trading the Primary Uptrend, by SAINT (post # 2)

Trading the Intermediate Trend, by SAINT (post # 3)

Trading using Trend Lines, by Satyajit (post # 4)


Intraday Methods

Trading using Trend Lines by Satyajit (post # 4)

Trading Intraday with 5 Mins Using 15/30 mins as prespective, by SAINT (post # 5)

Trading Gaps, by Saint (post # 6)

Trading Using Modified Kolkata Indicator (post # 7)

Trading using rate of change of (TBQ) Total Buy Quantity and (TSQ) Total Sell Quantity


Everything in between Term Methods

NIFTY Futures Mechanical Trading by Vinod Nadoda (post # 14)

Trading methods using CCI by rhimadri (post # 15)

Stop & Reverse with 60 Min Pivots by SAINT (post # 16)


Trading Options

Options Trading by Ghosh (post # 37)

Delta Neutral Trading (post # 38)


Important Reads

Threads by CreditViolet (post # 50)

Threads by Karthik (post # 51)

 

[timepass]

Know the 3 Main Groups of Chart Patterns

http://www.babypips.com/school/midd...b&utm_medium=timeline&utm_campaign=fbtimeline

It’s not enough to just know how the tools work, we’ve got to learn how to use them. And with all these new weapons in your arsenal, we’d better get those profits fired up!

Let’s summarize the chart patterns we just learned and categorize them according to the signals they give.

Reversal Chart Patterns

Reversal patterns are those chart formations that signal that the ongoing trend is about to change course.

If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during a downtrend, it suggests that the price will move up later on.

In this lesson, we covered six chart patterns that give reversal signals. Can you name all six of them?

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

If you got all six right, brownie points for you!

To trade these chart patterns, simply place an order beyond the neckline and in the direction of the new trend. Then go for a target that’s almost the same as the height of the formation.

For instance, if you see a double bottom, place a long order at the top of the formation’s neckline and go for a target that’s just as high as the distance from the bottoms to the neckline.

In the interest of proper risk management, don’t forget to place your stops! A reasonable stop loss can be set around the middle of the chart formation.

For example, you can measure the distance of the double bottoms from the neckline, divide that by two, and use that as the size of your stop.

Continuation Chart Patterns

Continuation chart patterns are those chart formations that signal that the ongoing trend will resume.

Usually, these are also known as consolidation patterns because they show how buyers or sellers take a quick break before moving further in the same direction as the prior trend.

We’ve covered several continuation chart patterns, namely the wedges, rectangles, and pennants. Note that wedges can be considered either reversal or continuation patterns depending on the trend on which they form.

To trade these patterns, simply place an order above or below the formation (following the direction of the ongoing trend, of course). Then go for a target that’s at least the size of the chart pattern for wedges and rectangles.

For pennants, you can aim higher and target the height of the pennant’s mast.

For continuation patterns, stops are usually placed above or below the actual chart formation.

For example, when trading a bearish rectangle, place your stop a few pips above the top or resistance of the rectangle.

Bilateral Chart Patterns

Bilateral chart patterns are a bit more tricky because these signal that the price can move either way.

Huh, what kind of a signal is that?!

This is where triangle formations fall in. Remember when we discussed that the price could break either to the topside or downside with triangles?

To play these chart patterns, you should consider both scenarios (upside or downside breakout) and place one order on top of the formation and another at the bottom of the formation.

If one order gets triggered, you can cancel the other one. Either way, you’d be part of the action.

Double the possibilities, double the fun!

The only problem is that you could catch a false break if you set your entry orders too close to the top or bottom of the formation.

So be careful and don’t forget to place your stops too!

A good lesson on chart patterns.

 

[timepass]

Price moves which start in the afternoon are generally strong and durable. If you dont trade in the afternoon, then you will be missing such moves and you will be playing with a handicap.

Smart_trade

Yeah ST you are correct, I have seen that 09:15 to 10:30 and 14:15 to 15:30 give strong moves, so will soon try to trade both these sessions alone. As per your experience can you please guide me when most of the strong afternoon moves initialize is it around 13:30 or 14:30? Just as per your experience asking bro, so that I can reschedule my plans accordingly.

Good moves generally start at 2:00 -2:15 and they accelerate after 2:30 or 2:45...so even if you trade after 2:30 you can catch good portion of that move.
ST

A wow discussion !!

 

[timepass]

Thx ST Bro

I saw one post from Subhadip, where he takes trades on 1min tf based on 5 min tf trend, how can we enter such setups ST any idea?

Is it like wait for Pivot break in 5min chart and enter on retractment in 1 min chart or draw trend lines on 5 min chart and enter on BOF on 1 min chart something like that? If you have idea please advice.

That is pretty easy...let 5 min timeframe signal a trend change, then you take a short trade and keep your stoploss on 1 min Pivot high....or after 5 min trend changes to down, sell on 1 min pivot low break and keep initial stoploss at 1 min pivot high.

5 min timeframe short term trend changed to down when NF cracked below its 1:15 candle low ( of Friday ) ....today it was in downtrend all along.

Smart_trade

Another gem in simplicity based on PA.. even rank beginners can practice it..Looks like a great exercise in keeping tight stoplosses.

 

[Smart_trade]

Another gem in simplicity based on PA.. even rank beginners can practice it..Looks like a great exercise in keeping tight stoplosses.

If one marks the above on a chart, it was possible to catch the downmove with 6 NF points initial stoploss. Such trades give a high Reward to Risk ratio.

Smart_trade

 

[Somatung]

@TP

I like how your thread moves on. Very good posts you store here. Great thread :thumb:

 

[timepass]

P-1 or 2 Bars Entry

Today I will share an entry technique which is my favourite entry technique for getting into a trend move, Many times we either miss an entry in a trend move or we get out in between and we want to enter again with small, predefined and controlled risk.

The chart is attached. Here market was in uptrend, it opened with a gap up and after a bit of correction, the uptrend resumed and we want a low rish entry in this uptrend.

Here we locate a small pivot low. And our entry in long trade is above high of the bar which is one bar earlier to pivot low bar provided it is higher than the pivot low bar high, else we go 2 bars earlier.

I have marked 5 places where market gave us a low risk entry shown by blue lines. The stoploss is at the low of the pivot low bar....and you are hooked into a trend...enjoy the ride.

This is an entry method....it is NOT a stand alone trading system....please use it as an entry method only.

The method is based on the fact that an uptrend is made up of higher pivot highs and higher pivot lows and if we keep stops at a pivot low, it will not be hit in a strong uptrend, and if it is hit, it means that the uptrend is weak and we better get out instread of hanging around in a market which is not trending strongly. It is based on sound trading principle and hence this entry technique has more than 75-80 % success rate and is my favourite.....This entry is a great entry for adds even if we are already in trend. It gives low risk add points.

Mirror image to get into a downtrend.....

Smart_trade

Just saving it..Sometimes the gems get lost in the traffic