Indicator-Free, Stress-Free Trading
- Thread starter .Pride.
- Start date
ok..i'm back
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
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So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
__________________
your SL is my TP
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
__________________
your SL is my TP
Last edited by a moderator:
Really looking forward to trying this. Your strategy thread was what brought me to Traderji. Thank you.
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