General Trading Chat

[timepass]

Sideways is a pause in a trend.right?If trend hasnt changed why would we change trading bias.Uptrend>sideways.Trade sideways from longside only.

Wish it was that easy

I think that there is something in manish's statement. I can't define it, but maybe sideways is a good time to review one's positions and maybe initiate fresh positions.

 

[vijkris]

Wish it was that easy

Sideways is a pause in a trend.right?If trend hasnt changed why would we change trading bias.Uptrend>sideways.Trade sideways from longside only.

It hurts when after waiting for 3 hrs in sideways, and finally scrip decided to reverse and hits sl. then reentry in opposite results in another weak movt. and 3.15 pm auto sq off happens. thus getting babaji ka thullu

though since few months the above phenomenon did not happen as markets are volatile and trending..

 

[vivektrader]

ok. Best leave answer for ST.

I have stopped thinking in terms of traps and BOF, only try to trade trends and reversals. Once its back in range, we can treat it as BOF. Even by Pivot method - If Range High is vERL, then we can short on pivot break below it - But only after there was some visual distance close above VPH. Best to take failures in direction of existing trend i think.

In an uptrend, i will go for short only after price pivots below vERL / or exhaustion gap / or lower degree trend. Else all longs. If short below vERL fails then - wait for price to move above vERL before taking longs. In sideways - trade sideways method. No rule for specific SAR trades

Have been thinking about your post ever since I first read it, its spot on. Trading counter trends and fishing failures is burning a hole in my capital. I will strive harder to keep things simpler from now on.
Thanks

 

[TraderRavi]

See the contradiction in your statement.You know what is needed to be done to be successfull but still you are not doing it.Ask yourself ..... Why?

You know the problem areas in your trading.This is first step.Half the work is done.Next step is to find the solution to these problems and you will level up in your trading.

Most people dont even have any idea of the problem areas in their trading.So dont be you are doing better than most people.:thumb:

Not a single yawn during whole trading day.....ask yourself......Am i overtrading?



your signature is good , low patience => overtrading.
overtrading means trading low probability setups also.
capital at risk more no. of times , brok & charges increased , more tension in mind etc etc.

 

[XRAY27]

Breakout failure :

Break out failure is one of the most favorite setup for my intra day trading..guess what breakouts fail in more than 70% of the time.

This is why strategies that rely on breakouts may have very inconsistent performance. Of course, the best way to trade is in the direction of the trend and trading breakouts is part of that, but trading all breakouts is going to lead to a catastrophe.:lol:

False breaks happen when the market pushes through a resistance or support level, but then quickly returns back in the opposite direction and the breakout fails.

This failure can be spotted from volume divergence and as wall as pattern failure ..every thing was shared in forum from my side

Last week nifty baba given 130 pts with this :yahoo: :yahoo:

 

[vivektrader]

Breakout failure :

Break out failure is one of the most favorite setup for my intra day trading..guess what breakouts fail in more than 70% of the time.

This is why strategies that rely on breakouts may have very inconsistent performance. Of course, the best way to trade is in the direction of the trend and trading breakouts is part of that, but trading all breakouts is going to lead to a catastrophe.:lol:

False breaks happen when the market pushes through a resistance or support level, but then quickly returns back in the opposite direction and the breakout fails.

This failure can be spotted from volume divergence and as wall as pattern failure ..every thing was shared in forum from my side

Last week nifty baba given 130 pts with this :yahoo: :yahoo:

By volume divergence do you mean a close back in range on higher volume?

 

[Somatung]

Divergence Trading w/Volume Profile .... and Trader Pyschology​

 

[Smart_trade]

ITF is intraday method so at the open if we break earlier day's VP or after sustained move we open in the direction of the move with a gap and the first bar is rejected then we take a trade in reverse direction .Stop and reverse if we break a VP without having any MP in between then it is a case of stop and reverse.

Many use ITF for swing but originally it is intraday method.


ST

1) One of the most common wrong understanding in pivot method is that we need to wait for fresh visual pivot to form during the day before we take a trade. We need fresh visual pivot only in case of gap open within previous day's afternoon range. In all other cases if we break the VPL formed earlier day ,we reverse our position to short if we were in uptrend earlier. This can happen on the opening bar too.

2) In case of uptrend, we have had a sustained upmove for 2-3 days with some wide range bars and then the move gets steep at the close of the day. Next day we open with an upside gap and the first bar is a red candle.Now if the low of the red candle is cracked, we take a short trade. The idea is we are trying to catch a exhaustion gap.But there has to be a sustained and steep move before that.Most traders try to short the first gap after sideways consolidation which in fact is a breakaway gap and the market breaks out very strongly.So sustained move and steep rise earlier is needed for reversing on rejection of first or opening bar.

3) Imagine a situation where market is in uptrend making series of higher VPLs and VPHs and in the last leg of the upmove it stalls and unable to move further and falls down breaking the last VPH and in this fall there is no mpl.It is a sudden and fast fall without any mpl so that we will liquidate our long position. But if it breaks last VPL,we stop and reverse here meaning get out of long trade and go short in the new likely downtrend.

Hope the above will make things clear.

Smart_trade

 

[timepass]

USDINR hovering around 100DMA after a long time. I guess it will do some timepass around these levels, appreciating to 66.8 region and down to 67.5 region, before further direction.

The point in favor is that it is the beginning of the month and there's isn't much demand from the importer/exporters as yet (it usually comes at the month end). The point against is about the Fed meeting next week.

200DMA is at 65.88, maybe it can rise to that level.

 

[arsh22g]

Potential market moving news:

http://www.ft.com/intl/cms/s/0/ca52b21a-e940-11e5-888e-2eadd5fbc4a4.html#axzz42neCoe8k

http://economictimes.indiatimes.com...s/articleshow/51382898.cms?platform=hootsuite