Trading near swing high/low broken candle

[trade4joisar]

In this thread, i would like to mention all trades which can be taken when price came high/low of candle which break previous swing high/low.

By this way there is very less/NO chance that you get whipsaw, but yes it can be swing trading / intraday trades as per individual choice.

This can be done based on following timeframes
* 30 mins
* 1 hr
* Daily
* Weekly

 

[trade4joisar]

On 9th Jan, 2014 i have taken long in L&T at 972 in spot based on weekly swing high broken (2 prev swing highs) on 25th Nov, 2013.

Let see how it goes.

 

[trade4joisar]

Infy
-----

Weekly
----------
On 16th Dec, 2013 Open/low made of 3380/3353

On 7th Oct, 2013 Open/Low made of 3015/3006

Let see where it goes today.

 

[trade4joisar]

On 9th Jan, 2014 i have taken long in L&T at 972 in spot based on weekly swing high broken (2 prev swing highs) on 25th Nov, 2013.

Let see how it goes.

It made low around 962, but then made high of around 984 (exited around 981).

 

[trade4joisar]

Infy
-----

Weekly
----------
On 16th Dec, 2013 Open/low made of 3380/3353

On 7th Oct, 2013 Open/Low made of 3015/3006

Let see where it goes today.

So 16th Dec, 2013 candle after which it made low around 3417 (in same week) was indication on that infy will go up.

 

[trade4joisar]

Axis Bank
---------

In week of 2nd Dec, 2013, Open/Low was 1059.8/1158.
Friday close/low was 1164/1058.9

Let see how it goes next week when result is on 16th Jan, 2014.

 

[timepass]

T4J, have you found this observation working better on Weekly TF ? Or do you think that you should combine it with the daily ??

 

[trade4joisar]

T4J, have you found this observation working better on Weekly TF ? Or do you think that you should combine it with the daily ??

It works on all TFs including 5 mins, only difference is that on higher TFs like weekly close will be above/below of big candle which breaks swing high/low so we need should have small SL so that we do have whipsaws and again ride when it comes to high/low.

In daily/lower TFs, advantage is that we can also trade intraday and get out with profit (may be partial qty).

E.g. L&T gave whipsaw last week.

But yes, this is pure "Wait for Oppurtunity" trade.

 

[trade4joisar]

Axis Bank
---------

In week of 2nd Dec, 2013, Open/Low was 1059.8/1158.
Friday close/low was 1164/1058.9

Let see how it goes next week when result is on 16th Jan, 2014.

So e.g. of how it moves when comes near to low of candle (bigger than normal) which broke swing high candle.

Today's high was 1200 and close 1184.

So sometime can be used as STBT/BTST.

 

[trade4joisar]

It made low around 962, but then made high of around 984 (exited around 981).

I shorted L&T based on closed below 970 (weekly candle) in last week today around 979.

Let see what happens when price close below candle like this.