General Trading Chat

vijkris

Learner and Follower
i saved amit ji's post regarding this.. pasting it from my notes.

"VWAP is the Volume Weighted Average Price of a security. It shows the average price of the positions traders carry at the moment. In NOW terminal it is shown as ATP .

We play on simple technique that find out which is a side which is trapped and how much are they under water. At 2:45 the weighted average of Nifty future was showing 5035-40 whereas NF was quoting at 5085....a clear gap of 40-45 points. This means that the market is heavy at the bottom or lots of trades have happened below 5035 ......and the longs are comfortable but shorts are now feeling the heat. They will come for covering their short positions......also at 3:10 the brokerages will square off all loosing positions which are not covered by margins. So here instead of booking profits add on every dip ......the bears are dying to cover their short positions.

After 3:10-3:15 there is panic in bear camp.......the die-hard bears come to cover after 3:20 and it is adding fuel to the fire. We just have to watch market going up like a rocket.....last 20 min give us a very quick move up.......and we get best price when the bears say " damn.....cover at any price...." and that is where we liquidate our long position built up anticipating this to happen.........it is a fun to trade this move.... "

Pasted from <http://www.traderji.com/general-trading-investing-chat/96368-general-trading-chat-3405.html>



http://www.traderji.com/general-trading-investing-chat/96368-general-trading-chat-3405.html
 
i saved amit ji's post regarding this.. pasting it from my notes.

"VWAP is the Volume Weighted Average Price of a security. It shows the average price of the positions traders carry at the moment. In NOW terminal it is shown as ATP .
the vwap (black line) in Pratap Sir's AFl and ATP is one the same thing,barabar?
or..
 

Contra

Well-Known Member
what will u call todays market...
profit booking or precursor to more downmove...
any negative news that had triggered todays fall?
Nifty has given up the gains from last week and has actually closed just below last week's low.

The reason for this is because of bullish breakout failure -- it failed to break upward and close convincingly above 7715 (reasons & logic posted here). It did close at 7716 last week but the move wasn't convincing.

Interestingly, today's close is 7615 (100 pts below that breakout level)

The next consolidation level is downwards, in the range of 7605 to 7530 (close to the mean)

 

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