General Trading Chat

[lemondew]

Bhai,

are we becoming better traders ? paise nahi ban rahe.

Market is giving us different types of days so that we can practice and perfect our trading skills....we should thank the market for making us better traders.

Smart_trade

 

[XRAY27]

Seniors,
Pls comment on this flag breakout.

vishnu_1990v

Vishnu

Below is the extracts from my notes collected from Thomas Bulkowski great guru who thought patterns for trading with the best possible insight and also edward and magee for the fine points on chart patterns..true pioneer

Bullish Flag

The Bullish flag is a continuation pattern. The flag is formed by two straight downward parallel which shape a rectangle . It is oriented in the direction of the trend that it consolidates. this pattern is very short term and marks the fact that buyers need a break.

The creation of a Bullish flag occurs in an upward trend. Most often, this break occurs halfway the movement.

The target calculation is compared to the previous trend. We calculate the height of the overall upward trend prior to the formation of the bullish flag and then extended that low on the last lowest point of the pattern.

Here is a graphical representation of a Bullish flag:

Statistiques

Here are some statistics about the Bullish flag:

- In 87% of cases, there is an upward exit
- In 90% of cases, the Bullish flag is a continuation pattern
- In 62% of cases, the target of the pattern is reached
- 76% of Bullish flag occur when the price is into the highest third of its annual range
- In 10% of cases, a pullback occur on the support

Notes

- More the previous movement preceding the formation of the flag is powerful, more the bullish breakout will be strong.

- The performance of a flag is much less important when it is oriented in the direction of the trend

- A flag with narrowed lines is more performing than a flag outspread lines

- A flag is more powerful if there is no false breakout

Trading Strategies

The classic strategy:
Entry: Take a long position at the breakout of the upper band
Stop: The stop is placed below the last lowest
Target: Theoretical target of the pattern
Advantage: In case of bullish breakout, the movement is often powerful
Disadvantage: The target is not often reached (62% of cases), you must determine by yourself your own objectives.

The aggressive strategy:
Entry: Take a long position on a point of contact with the support of the flag, starting from the 3rd contact point
Stop: The stop is placed below the last lowest that has been done
Target: Theoretical target of the pattern
Advantage: In 87% of cases, the exit is upward
Disadvantage: The upward breakout is not yet confirmed

Bottom line :Rectangle shape and time span should be short for this Bullish flag, which is not there in your morning chart !!!

 

[vishnu_1990v]

XRAY27 Bro,
Thank you for your reply on Flag pattern.
vishnu_1990v

 

[lemondew]

Dear friend,

Question to all seniors. How many years backtesting would be good. I backtested for 1 year it worked well. Then did live trading for some months the strategy works and was over moon.

Looks like period of 2014 was a unique bull market and last 3-4 months we are moving to a market where there isnt much volatility. So what seems to work then it is pausing and after the excitement there is sudden lull now.

May be I should test my strategy prior years or no amount of backtesting can make it safer??

 

[TradeJoker]

no brokerage for delivery trades from today with zerodha, but what about other changes

 

[vishnu_1990v]

XRAY27 Bro,
Please check is this flag ok.
3min chart JSWSTEEL.
Are patterns to be drawn only on higher time frames like 15,30 and 60 min or even on lower time frame is also ok like 3 and 5 min.

vishnu_1990v

 

[Singhraja]

st da and Seniors please guide where is correct trade'sas per yesterday concept I figured out this one correct trade

Still waiting

 

[vijayanscbe]

Dear friend,

Question to all seniors. How many years backtesting would be good. I backtested for 1 year it worked well. Then did live trading for some months the strategy works and was over moon.

Looks like period of 2014 was a unique bull market and last 3-4 months we are moving to a market where there isnt much volatility. So what seems to work then it is pausing and after the excitement there is sudden lull now.

May be I should test my strategy prior years or no amount of backtesting can make it safer??

Backtesting years should have mixed of long term bull/bear and sideways.
so its better to backtest from Jan 2007 to till date, It covers long term bull/bear and sideways.

 

[lemondew]

To tell a long story in short

I backtested for 2014 Started from december 2014. Worked well for first 6 months in 2015. Made some money on top of world

First time I realised things can be wrong was in june. Then reduced trading size. It used to work on and off alternate months. Last 2 month been bad

Now back to study room. Testing previous years. Realised it doesnt work too well in AY 2013-2014. It did well for AY 2014-2015. I am looking for more years behind and hopefully can get some more completeness in the system

Backtesting years should have mixed of long term bull/bear and sideways.
so its better to backtest from Jan 2007 to till date, It covers long term bull/bear and sideways.

 

[sangram1705]

bomb scare - london

hope everything goes well