Timepass's notes

[market oracle]

Quite resourceful. Timepass, on avg., how is ur trading structured? More options or futures?

 

[raul12]

Timepass,

Thank you so much for this superb and systematically organised collection of the Gems of TJ. :clapping: :thumb:

This is a "Must Subscribe" thread....Your notes are for everyone's benefit.

Thanks

-bhavya

 

[timepass]

How to identify Trending Days..

Thrust ...sideways....thrust

Markets very rarely go straight up or down....but the trend manifests itself in sequence of Thurst,Sideways,Thurst . The sideways hase after the thrust is necessary as the weak holders book profits,scalpers book profits, strong holders buy more,and then comes a breakout from sideways movement.

In todays Nifty Futures there are 4 such sideways zones marked...market brokeout each zone with a strong thrusting bar to continue its uptrend. Thrusting bars are like a rocket launcher which launches the rocket into the new orbit and in strong trend , it will not come back into the orbit ( sideways zone ) once it leaves it.....once we understand that , the rest is easy...We can use this behaviour of the market to time our entries, trail stops, adds....


Smart_trade

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

 

[timepass]

Rules of Intraday Flow method: (IDF)

I have learned it from Saint sir, Kapil Sir, Pratap Sir & ST Sir,

IDF trades the minor trend in the direction of visual trend in 5 min chart.

5 min chart used for all index & scripts.

To understand the visual Pivot at 5 min TF, I look at PHs and PLs in 15 min chart. Every pivot in 15 min chart is a visual pivot in 5 min TF. From experience you can do it in 5 min chart itself.


Go long/short at Visual Pivots. Exit at minor pivot break. If 60 min clsoing at known support/ resistance also exit.

Adds on Minor pivots.

Opening trade:
If open in yesterday's range:- in Direction of Flow 30 enter on break of Yesterday's pivot. Against Direction of Flow 30 wait for a 5 min pivot above it or go long/ short above/ below the bar that gives a 15 min close above or below it.

Sideways: Nothing to do. Close outside bodies of sideways and then go long/ short above high/ below low of that bar.

Flags: nothing to do. Trade the Break out & Break down.

Profit booking: Support & Resistance.


Now yesterday Visual UP Condition:
1. Gap up above VPH; go long over mPH over 1st Bar.
2.Open/ Gaps down into range but above Visual ERL: Go long over mPH (When minor trend alligned MPH).
3. Opens/ Gaps down into range but below visual ERL: Go long above VPH; go short below VPL
4: Gaps down below VPL: short on a pivot below 1st Bar.


Now yesterday Visual Down:
1.Gaps down below VPL: Short below minor pivot below 1st Bar.
2.Opens/ gap up into range but below visual ERL: short after minor trend alligned to it.
3.Opens / Gaps up into range but above visual ERL:Go long above VPH: Go short below VPL
4. Gaps up above VPH: Long on a pivot; Short below pivot if 1st Bar moves into range

Visual Sideways Days:
1. open in range- go long avove VPH; go short below VPL
2. Gaps above VPH: long over minor pivot;
3. Gaps below VPL: Short below minor pivot.

When to go long:
1. Price in Visual Uptrend- comprising of Higher VPH & Higher VPL
2.Price pivoting above visual ERL of the downtrend.
3. In Visual Sideways, we will wait for an mPH to be formed above ERL

When to go Short:
1.Price in Visual Sideways;
2. Price pivoting below Minor ERL or Visual ERL
3.In Visual Sideways: we will wait for an mPL to be formed below ERL.

When nothing to be done:
When price enters Visual Sideways .

Subhadip's thread on pivot trading.

 

[timepass]

Not sure of this post....if irrelevant mods /thread owner can delete it.

some important candlestick patterns.

 

[timepass]

.....
I mean like we can start from basics Like a blue candle always opposes the price to fall(means the next candle) below it and a Red candle always opposes the price to rise above it a very basic observation can we build this germ further ?

Regarding Technical Analysis , it is use of fairly simple tools to make investing/trading decisions.After experimenting with a lot of stuff around , I have really found that simple things work very well.

Like a 20 EMA , which I always advocate on daily or even 5 min time frame.
Support/resistances, trend-lines,Fibonacci retracements,etc are the other great tools which can be combined easily with these to form a great system in trading.

I really believe that swing trading or positional trading is simpler compared to Day trading.If you are talking about day trading, it is the toughest and grinding even for the best of the best traders.

Regarding the very basics, I have found that the regular traders visiting this thread are very well versed in Technical Analysis,many of them are very advance levels much higher than me too.
I learn from them.
So it would not be fair to them to start with the very basics.

I recommend a lot of free courses available on the net and trading videos on Youtube.

To get you started some useful free links,

http://www.daytradingcoach.com/daytrading-technicalanalysis-course.htm
http://www.atradersnotepad.com/home
http://daytradetowin.com/educational-trading-videos.php

Also some great thread here in Traderji for learning TA

http://www.traderji.com/technical-analysis/6072-teach-man-fish-182.html#post38532 =Saint Sir's evergreen thread
http://www.traderji.com/technical-analysis/69380-charts-day-216.html#post674412=Anil Sirs thread which I regularly follow
http://www.traderji.com/technical-analysis/95375-index-analysis-nifty-bank-nifty-47.html#post999892=Anil Sirs thread which I regularly follow
http://www.traderji.com/technical-analysis/99967-demand-supply-zone-trading-17.html#post1106015=Great thread for support/resistance
http://www.traderji.com/derivatives/99863-pivot-trading-new-way-trading-151.html#post1103562=Subhadip Sir's amazing thread on pivot trading.
http://www.traderji.com/forex/100825-price-action-trading-art-science-5.html#post1126111=Howard Sir thread on candle basics.
http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-127.html#post517479=ST Sir's thread on swing trading
http://www.traderji.com/day-trading/89395-master-one-trick-only-156.html#post852557=Avny sir's thread on Intraday Price Action trading.
.......and many many more

Any chart reading issues , you can always post the chart here.
Just that Forum rules prohibit advice regarding buy/sell,targets and stop losses

......................

 

[timepass]

Source:Investoo.com

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[timepass]

Food for thought.

 

[timepass]

Just few points for intraday players from my little trading experience as intraday trader

1. R:R will not be there in intraday at most...we have to move as per the setup...say pivot entry then move with pivot if it is range trade just book at 80 % of the previous range..

2. Your trading setup should not hit more the 6 trades of consecutive losses,without being moved to TSL

3. Ambiguity is trading system leads in over trading example entry based on pivot and exit based on candle sticks...net result jumping between trades like monkey

4. More trades you do per day..more likely that your broker will be much more rich, then your account as a whole

5. Don't apply every trading psychology point to intraday, there are more or less for positional one..only few apply for intraday..

6. Backtest a setup for at least 2 years then form a conclusion on MM and Draw down.

7. Intraday moves more or less with traping understand that in full

Lessons ... lessons.. when will I learn from the others and, more importantly, apply the lessons !!

 

[timepass]

Source:http://www.livemint.com/Money/SIcLcDhnellykWvMHCOhBJ/Mint50-Right-fund-is-better-than-best-fund.html

For future reference.