Diary of a 315 Trader
- Thread starter trade4putuval
- Start date
- Tags fibo levels ichimoku smc swing trade
Fibo Levels
There are two ways of measuring Fibonacci series.
So for RCOM, I had mentioned above 117, we see a break out till the next consolidation, else the current Fibo levels will be respected.
For next consolidation, we have to use other strategies to arrive at an approximate value.
For Kotak Mahindra, earlier we had earlier taken a figure of 800, which got broken on 31st May making a high of 807 after which it came down.
So I drew a new Fibo level for the same marking 807 as the crest.
Note: I consider other strategies before entering a trade based on Fibo levels just to be sure that I am entering a right trade, and not getting trapped in a false move.
Hi Putuval,
I am impressed with your trade wins in Rcom,congrats and lot many thanx for sharing the ideas.
one small Q. how long the fib lvls that you have labled on rcom and kotak bank,will remain valid ? thanx in advance.
Also my salute to Trade hunter you all are great!!!
vivek
I am impressed with your trade wins in Rcom,congrats and lot many thanx for sharing the ideas.
one small Q. how long the fib lvls that you have labled on rcom and kotak bank,will remain valid ? thanx in advance.
Also my salute to Trade hunter you all are great!!!
vivek
- Take a particular wave, from trough to crest or vice-versa and draw the Fibo levels. This fibo levels will remain the same so long as that wave is intact, without breakdown (lower side) or breakout (upper side). Once break out or break down, we trade in that direction till there is next consolidation, and we again take the trough and crest of that wave to form the new Fibo levels.
- Second, we have high and low of the 3 trading days on the first week of the new expiry and then plot the Fibonacci levels based on those values. I am still trying to understand that. It was developed or honorably pushed forth by sevenstar. Refer this post and all the posts before that to understand how the fibonacci per month is developed. You do not need a chart for this. (http://www.traderji.com/derivatives/72821-nifty-50-future-trends-part-2-a-87.html#post794604)
So for RCOM, I had mentioned above 117, we see a break out till the next consolidation, else the current Fibo levels will be respected.
For next consolidation, we have to use other strategies to arrive at an approximate value.
For Kotak Mahindra, earlier we had earlier taken a figure of 800, which got broken on 31st May making a high of 807 after which it came down.
So I drew a new Fibo level for the same marking 807 as the crest.
Note: I consider other strategies before entering a trade based on Fibo levels just to be sure that I am entering a right trade, and not getting trapped in a false move.
Let me tell you before hand, that I am not very good in options. Maybe DanPickup is the right person to refer to your query here. The reason I say I am not good in options is because I have never really made profit in it.
What I have understood and learnt from options are the following. Perhaps this could help you decide what to do with your current trade.
Considering your position today, I would prefer you exit the 97.5 put and enter a more favorable position, 110 put (refer to the last point in my post).
I agree the cost of the put will be high, but it will be more safer because if price does not come to 100 anytime, then the price of your 97.5 put will lose value faster. On the other hand, if the price does come to 100 anytime this week, you still stand to make a huge profit from 110 put because 110 put will grow faster than the 97.5 put.
Again, this is only a view point. You alone have to take the right decision.
What I have understood and learnt from options are the following. Perhaps this could help you decide what to do with your current trade.
- Options depends on the market mood and the interest of the traders in a particular scrip. I had once done a trade on Ashok Leyland buying 35 call at 1.75 and selling it at 4.75 when price touched 35 post which it fell down to 32. But after that the price came up to 37, and even then the price of 35 call was 70 paise. I assume lack of interest in this stock must have prompted the traders to go away from options or they would have felt it better to trade in futures. I do not know the right answer here
- Options has to be traded within a day or two else time decay will kill the price of that option. I read somewhere in traderji that even keeping the option open during the weekend also kills the price to some extent.
- Never trade options after 15th of every month unless you are absolutely sure that your trade is going to work 95%. Time decay will kill the price at a faster rate.
- Consider the risk-reward ratio and loss that you can bear on an option. For example, one of my colleague had entered an Infy 2700 call option at Rs 5 3 lots. He stands to lose some 4K if the price went against his direction. Perhaps he did not want to lose that 4K that he squared off the trade that day, even though he knew that his trade was right. Next day Infy made a 600 rs move, and that option worth Rs 5 made a high of Rs.305.
- Last but least, always trade options whose strike price is near CMP. If you trade 97.5 put and CMP is 100, put a stoploss at 102.5 if CMP crosses 102 and then buy 102.5 put. That way, you will make less loss on the OTM option. In other words, the loss made by 97.5 put will be covered by the profit of 102.5 put option if the trade goes in your direction. If it goes against your direction, you still stand to profit from the severe loss that your 97.5 put would have rendered if the price touched 105.
Considering your position today, I would prefer you exit the 97.5 put and enter a more favorable position, 110 put (refer to the last point in my post).
I agree the cost of the put will be high, but it will be more safer because if price does not come to 100 anytime, then the price of your 97.5 put will lose value faster. On the other hand, if the price does come to 100 anytime this week, you still stand to make a huge profit from 110 put because 110 put will grow faster than the 97.5 put.
Again, this is only a view point. You alone have to take the right decision.
Nifty Today's view
Check 6 months daily chart!!!
I have created a band where the candles have shown signs of bearishness and bullishness after getting out of it. How did I derive this band!! There is no strategy, just drew the band that covers most candles of the waves. So it need not be technically correct.
Check the red arrows where the candles got out of the band to keep falling to a new low. Similarly check the green arrows where the candles got out of the band to keep rising to a new high.
So based on this we have two levels (or boundaries), from where you can start forming your positions. Near those bands, you can form your positions keeping the band levels plus some points as the SL or reverse trade.
Now we have ichimoku chikou span, that is flirting with the price action. So if the span goes below the price action, be sure to follow the red arrow shown, it can make new lows. I see this as a very high probability. Another reason is if the price keeps moving up, even then the chikou span can come below the price action indicating bearishness. So exiting near 6K and reversing your trades is the best option.
Check 6 months daily chart!!!
I have created a band where the candles have shown signs of bearishness and bullishness after getting out of it. How did I derive this band!! There is no strategy, just drew the band that covers most candles of the waves. So it need not be technically correct.
Check the red arrows where the candles got out of the band to keep falling to a new low. Similarly check the green arrows where the candles got out of the band to keep rising to a new high.
So based on this we have two levels (or boundaries), from where you can start forming your positions. Near those bands, you can form your positions keeping the band levels plus some points as the SL or reverse trade.
Now we have ichimoku chikou span, that is flirting with the price action. So if the span goes below the price action, be sure to follow the red arrow shown, it can make new lows. I see this as a very high probability. Another reason is if the price keeps moving up, even then the chikou span can come below the price action indicating bearishness. So exiting near 6K and reversing your trades is the best option.
Rcom
117 has been taken out, so now we should see new levels, the first level being 127. Let's see!
Refer my previous post for the new level calculations, http://www.traderji.com/equities/72...-commodities-etc-part-2-a-112.html#post812081!
117 has been taken out, so now we should see new levels, the first level being 127. Let's see!
Refer my previous post for the new level calculations, http://www.traderji.com/equities/72...-commodities-etc-part-2-a-112.html#post812081!
Last edited:
Re: Nifty Today's view
Check 6 months daily chart!!!
I have created a band where the candles have shown signs of bearishness and bullishness after getting out of it. How did I derive this band!! There is no strategy, just drew the band that covers most candles of the waves. So it need not be technically correct.
Check the red arrows where the candles got out of the band to keep falling to a new low. Similarly check the green arrows where the candles got out of the band to keep rising to a new high.
So based on this we have two levels (or boundaries), from where you can start forming your positions. Near those bands, you can form your positions keeping the band levels plus some points as the SL or reverse trade.
Now we have ichimoku chikou span, that is flirting with the price action. So if the span goes below the price action, be sure to follow the red arrow shown, it can make new lows. I see this as a very high probability. Another reason is if the price keeps moving up, even then the chikou span can come below the price action indicating bearishness. So exiting near 6K and reversing your trades is the best option.
So we are finally there where the arrow mark had ended. Tomorrow it is a long ride from 5764, also 38.2% of the Fibo levels.
Check 6 months daily chart!!!
I have created a band where the candles have shown signs of bearishness and bullishness after getting out of it. How did I derive this band!! There is no strategy, just drew the band that covers most candles of the waves. So it need not be technically correct.
Check the red arrows where the candles got out of the band to keep falling to a new low. Similarly check the green arrows where the candles got out of the band to keep rising to a new high.
So based on this we have two levels (or boundaries), from where you can start forming your positions. Near those bands, you can form your positions keeping the band levels plus some points as the SL or reverse trade.
Now we have ichimoku chikou span, that is flirting with the price action. So if the span goes below the price action, be sure to follow the red arrow shown, it can make new lows. I see this as a very high probability. Another reason is if the price keeps moving up, even then the chikou span can come below the price action indicating bearishness. So exiting near 6K and reversing your trades is the best option.
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