General Trading Chat

[vivektrader]

Correct. Immediate pivot high after we make a new low on the chart.

ST

I have this very old and basic query, asked many times (at various forums), didn't get a satisfactory answer, so putting it to you:
What time frame should be used to define credible support and resistance levels in:
1.Intra day perspective
2.Swing perspective

 

[Smart_trade]

I have this very old and basic query, asked many times (at various forums), didn't get a satisfactory answer, so putting it to you:
What time frame should be used to define credible support and resistance levels in:
1.Intra day perspective
2.Swing perspective

Supports and resistances of all timeframes are valid supports and resistances.So a support in 1 min timeframe when broken,may give us a move of 10points which may not be a tradable move even for day trading.Larger timeframe supports and resistances if broken indicate possible change in larger trends.So a 15 min timeframe S/R when broken may give a 35-40 points move which may be tradable for day trade but may not be tradable in swing trades.

For Day trades 15 min,60 min and for swing trades daily and weekly timeframes s/r will be good considering the moves we expect from them.Within these supports and resistances the markets can move in sideways zones.

Smart_trade

 

[Singhraja]

St sir I'm talking about this

 

[Smart_trade]

St sir I'm talking about this

I replied this yesterday. Trailing Stops trailing will work in case of clean trends but in case of weak trends with volatility you have to grab profits as we have overlapping moves .Here after your entry,the long tail hammer bar was an indication to grab profits.Such trends give 15-20 points only,they are not the days which will give us 50-60 points or more.

Smart_trade

 

[vivektrader]

St sir I'm talking about this

You can't trail stop loss empirically to break even in a trend (after it moved certain points in your direction) you can only trail to next pivot low when a new high is formed.
In this case you will probably trail the stop to the mpl, where you exited prematurely (the point where you said your stop loss was hit).
The break even 'funda' is only for quick scalps.

Regards
Vivek

 

[vivek.natraj]

I replied this yesterday. Trailing Stops trailing will work in case of clean trends but in case of weak trends with volatility you have to grab profits as we have overlapping moves .Here after your entry,the long tail hammer bar was an indication to grab profits.Such trends give 15-20 points only,they are not the days which will give us 50-60 points or more.

Smart_trade

Thanks again for patiently answering all the questions and guiding us with great insights to travel the treacherous path of the trading world... I cannot imagine how a retail trader can learn all these from books or any training videos and we are really fortunate to have your words of wisdom and expert guidance...

 

[Singhraja]

I replied this yesterday. Trailing Stops trailing will work in case of clean trends but in case of weak trends with volatility you have to grab profits as we have overlapping moves .Here after your entry,the long tail hammer bar was an indication to grab profits.Such trends give 15-20 points only,they are not the days which will give us 50-60 points or more.

Smart_trade

Sir how to determine weak trend with volatility any indicator or may be the trend will start again after itr took off morning high . how you identify sir please throw some light on it

 

[Smart_trade]

Sir how to determine weak trend with volatility any indicator or may be the trend will start again after itr took off morning high . how you identify sir please throw some light on it

You can determine that by looking at the chart.A 40-50 points sell off in the morning set the tone for the day that we will not have any strong uptrend that day,max we can have a limping volatile uptrend ,a trader has to understand that from the market moves,and the market confirmed the same throughout the day.When you have a big sell off in the morning,the chances of having a big uptrend that day is less than 15-20 %...just see your old charts and they will confirm the same.

ST

 

[Smart_trade]

One has to also think about statistical probability having the trend continue after a move of 50 points has already been done from the bottom.I would put getting 30-40 points more as a low probability unless we are in a strong trend day.So if one is entering after 40-50 points,he has to be alert and book profits of 20 points as the day's range comes to an end. Just see how many days we have 80 points and above range from top to bottom.

ATR will be helpful here.

ST

 

[TradeJoker]

Sgx@8010 :clap: aur dede baba