General Trading Chat

[SwagatN]

ST Sir, I read your answers, but now the post seems to be gone..

I understood most of it.. But when we are treating all these turning points as VP, Image 3 is likely visual sideways, and Image 4 is lower degree UpTrend with in higher DownTrend. But both the images are similar in nature.. I mean after the red line is broken, we got a higher VPL and then a higher VPH.. So why Image 4 is not in likely sideways too ?? is it because of the sharp fall for which we give more priority to higher degree downtrend ??

 

[Smart_trade]

ST Sir, I am facing few doubts in market trend and sideways range identification. Please confirm if the study in the following images are correct or not ? (Assume all the turning points are visual pivots)

Image 1 - Green line is ERL, Price breaks red line, downtrend starts.

Image 2 - Green line is ERL, Price breaks red line, downtrend starts.

Image 3 - Green line is ERL, Price breaks red line, downtrend starts. Then we have got a higher low and higher high. What is the current phase market in ?
Sideways or Uptrend ?

Image 4 - No need to draw ERL here, as visual trend turned sideways. Red line break, downtrend starts, as that has given the highset high. After the break down, we got a higher low and higer high. IN what trend we are currently in ? Sideways or Downtrend ??

Assuming that all turning points are Visual Pivots :

Image 1 : Likely Visual downtrend. Confirmed when we get lower VPH and lower VPL.

Image 2 : Correct.Visual downtrend has started

Image 3: Bit complex here. We are in likely Visual sideways trend as we are trading between VPH and VPL on left hand side. But if we now make lower VPH than top of the chart and then break VPL on the left side, we will be in Visual downtrend.

Image 4 :We are in lower degree Visual uptrend but one higher degree likely Visual downtrend. Visual downtrend will get confirmed if w break the VPL after making lower VPH.

For trading purpose we treat all : Likely downtrends" as downtrends because the confirmation will come much late. This is in anticipation of trend getting confirmed.

Good questions...

Smart_trade

 

[Dax Devil]

This rise and rise and rise by 200 points of crude may puncture nifty on monday.

 

[SwagatN]

ST Sir, I read your answers, but now the post seems to be gone..

I understood most of it.. But when we are treating all these turning points as VP, Image 3 is likely visual sideways, and Image 4 is lower degree UpTrend with in higher DownTrend. But both the images are similar in nature.. I mean after the red line is broken, we got a higher VPL and then a higher VPH.. So why Image 4 is not in likely sideways too ?? is it because of the sharp fall for which we give more priority to higher degree downtrend ??

ST Sir, Please see this..

 

[Smart_trade]

ST Sir, I read your answers, but now the post seems to be gone..

I understood most of it.. But when we are treating all these turning points as VP, Image 3 is likely visual sideways, and Image 4 is lower degree UpTrend with in higher DownTrend. But both the images are similar in nature.. I mean after the red line is broken, we got a higher VPL and then a higher VPH.. So why Image 4 is not in likely sideways too ?? is it because of the sharp fall for which we give more priority to higher degree downtrend ??

I deleted the earlier posts as I was giving both assuming minor pivots and visual pivots....Then I thought it will give rise to confusion as most are still struggling with these concepts.

Image 3 and 4 are not similar. The essential difference is in Image 3 we are in a sideways range and in image 4 we have cracked the sideways range shown by horrizontal lines and we are now way below it.

Smart_trade.

 

[SwagatN]

ST Sir, IN this chart, (Turning points are VP)

1 = Likely Visual uptrend started
2 = Likely Visual Downtrend started
3 = Likely Visual Uptrend started
4 = Likely Visual Downtrend started

So basically visual trend is failing to trend on either side, giving us a widening range pattern.

1-2 Leg = Likely UT, But price fell
2-3 Leg = Likely DT, But rise rallied
3-4 Leg = Likely UT, Price fell again.

So how to trade this situation, as if we trade in the direction of visual trend, we are most likely miss all these legs..
Is failure at VP to be traded (BOF) or boundary of the widening range ??

Next after 4, we got a higher VPL at 5, and a higher VPH too. So a lower degree uptrend started. Now when the higher degree trend (Which is likely down) will turn up ? After we take 3 ? Right ?

 

[Smart_trade]

ST Sir, IN this chart, (Turning points are VP)

1 = Likely Visual uptrend started
2 = Likely Visual Downtrend started
3 = Likely Visual Uptrend started
4 = Likely Visual Downtrend started

Yes to all the above

So basically visual trend is failing to trend on either side, giving us a widening range pattern.

1-2 Leg = Likely UT, But price fell
2-3 Leg = Likely DT, But rise rallied
3-4 Leg = Likely UT, Price fell again.

So how to trade this situation, as if we trade in the direction of visual trend, we are most likely miss all these legs..
Is failure at VP to be traded (BOF) or boundary of the widening range ??

This is a Megaphone pattern. Here ERLs come handy for trading.Failures of VP as well as pivots above ERLs will give us a tradeable move.

Next after 4, we got a higher VPL at 5, and a higher VPH too. So a lower degree uptrend started. Now when the higher degree trend (Which is likely down) will turn up ? After we take 3 ? Right ?

Yes to the above....till point 3 is taken out, we are in higher likely sideways trend.

Answers in red.

ST

 

[SwagatN]

Yes to the above....till point 3 is taken out, we are in higher likely sideways trend.

Answers in red.

ST

Thank you ST Sir for all the replies.. :clap::clap:
You made my weekends, Now time to go back to practice.. :clap:

 

[Somatung]

--------------------------Repetition, so deleted------------------------------

 

[XRAY27]

Source :Internet