Learning Group -VIJAYWADA

[XRAY27]

Sorry, it was Uttam's method .. Uttamkamlesh is the id you are looking for.

http://www.traderji.com/commodities...lver-crude-oil-natural-gas-32.html#post592834

It's a huge topic and you will have to search for the posts by uttamkamlesh to dig for it

Nice thread TP!! Thanks for updation :clap: !! i will go through it in the evening !!!

 

[XRAY27]

Counter trend Fobia

One of the reasons many new traders lose money in daytrading is because they cannot break the desire to countertrend trade, or to try and pick tops and bottoms.
Unless prices are in what I would describe as a “trading range”type day, it is very unwise to try and pick tops and bottoms.Generally, when a market looks poised to change direction,that is often times the best point to get back on board with the longer-term trend.

 

[XRAY27]

Trading price traps

Price trap is one of most rewarding price setup to trade..it is most repetitive pattern for price action traders

What is trap

Traps occur often and the name is a very good descriptor of what actually takes place. There are many reasons why traps occur, and there are several
different ways to approach them. What actually occurs with these traps is that multiple traders will enter a trade at the same location, which is usually a tick above or below a previous bar/candle or key price level. However, immediately upon ticking higher or lower, the market will instantly reverse, trapping those traders who entered on the tick higher or lower on the wrong side of the trade. When the trapped traders realize that they have been duped, they begin exiting on the break of the previous bar. This mass exodus adds fuel to the move and very quickly, the market will surge forward for a couple of points or more.

Trading the trap

When you see a trap setting up, you want to have a market “stop” order in place exactly where the trapped traders will be exiting. As the duped traders all begin to exit, your order will be executed and you will be swept into the tradewith the exiting orders and the move will generally be swift and sudden

Today Nifty future with bull traps

 

[sangram1705]

xray ji,
thanks a lot for providing the information you gathered from experience in this thread. (which is by far much better than knowledge from books)

I had a few doubts, pl answer whenever you have time.

1) As a price action trader should we concentrate on only single setup or keep on looking for all types e.g BO, BOF, TST, pinbars, patterns etc.

2) I think majority of PAT in this forum are using Trading time frame of 3-5 min. Your advice for people who would like to trade positional, which time frame is better suited (30 min / 4hrs). what would be the advantages / disadvantages for using bigger time frames.

3) some valuable advice would be highly appreciated (how to develop own complete strategy with PAT). With mechanical systems it is easier, but with PAT i am feeling every trade requires its own stoploss & different RR in each trade.

Questions are bit subjective, but whenever time permits pl provide your valuable guidance.
THanks

 

[XRAY27]

xray ji,
thanks a lot for providing the information you gathered from experience in this thread. (which is by far much better than knowledge from books)

I had a few doubts, pl answer whenever you have time.

1) As a price action trader should we concentrate on only single setup or keep on looking for all types e.g BO, BOF, TST, pinbars, patterns etc.

2) I think majority of PAT in this forum are using Trading time frame of 3-5 min. Your advice for people who would like to trade positional, which time frame is better suited (30 min / 4hrs). what would be the advantages / disadvantages for using bigger time frames.

3) some valuable advice would be highly appreciated (how to develop own complete strategy with PAT). With mechanical systems it is easier, but with PAT i am feeling every trade requires its own stoploss & different RR in each trade.

Questions are bit subjective, but whenever time permits pl provide your valuable guidance.
THanks

First of all thanks for the kind words..but i have gathered knowledge from books and some useful posts of this forum and internet source my observation on charts

1.Price action is not BOF,BO,BOP...which many people think...best way to do is Top down approach,with in this trade the above pattern/s..it is not at all good approach to trade with ORB,BO,PDC,PDL etc...blindly

2.Again answer is same, follow three trends 1.Longer 2. Medium 3.Short term..trade in the direction of larger time frame..For positional what is your TTF(Trade time frame) first determine this .. for Example: if TTF is 1 hour for positional and then daily chart will be medium term and weekly will be your long term..
I use 1 hour chart for positional trade/s

3.Even with mechanical system also you spend your time on gazing on indicator..like divergence(regular hidden),over bought or over sold..zero line cross overs and best part is you will spend your time in screwing indicators or jumping with different AFL's.Any price action setup will have very good RR ratio..provided you follow top down approach

How long it will take to develop a system?? it depends on your time and energy you spend on chart reading !!!

Also refer previous post/s in this thread..where i answered similar query.

Hope this points serve you for better ways....

 

[XRAY27]

Suggested Reading for Price action traders


1.. Suri duddella :Trading charts like pro

2..Thomas bulkowski:1. Encyclopedia of chart patterns, 2. Encyclopedia of candlestick charts, 3. Swing and day trading evoluation of trader

3.. Albrooks:1.Reading price action bar by bar, 2.Trading price action reversals, 3.Trading price action trading ranges,4.Trading price action trends

4.. YTC:Your trading coach..series

5..Nial-fullerrice action trading

Main points we shoud always remember is draw the logic of the pattern/setup/candlestick and observe that in our charts..

Like any new business venture, you must invest your time,and energy in order to make a profit. And like any other start up business, you will probably not make a profit starting on day one.

You will have to build upon each day until the profits start coming and eventually increasing.

After drawing conclusion i have made some PAT system (which i already shared) in members area..link is below my signature..

 

[niftyoption]

 

[XRAY27]

NIFTY EOD

Yellow and black lines are Gap support/s...Blue line is Rejection from 8617 level (as per 1st candle)

So we can draw the conclusion that from 8626 to 8504 a consolidation zone

Breaking of the either of the postion will draw to a trending area

 

[XRAY27]

Simple Understanding of price action is not enough to make you profitable.we must learn how to pick the best trades

After a trader has observed an up-trend on the longer-term chart, they can begin looking for buy opportunities on the entry chart(Trade time frame). And once again, as discussed i said in various previous post/s ,traders should look to ‘buy low,’ meaning after a recent retracement or pause in the trend.

Traders can use trends on longer-term charts to expose biases in the markets. And if looking to buy, traders can wait for a ‘higher-low’ to be made, and then can investigate entry on the shorter-term chart. As the shorter-term chart begins to show ‘higher-highs’ and ‘higher-lows’ as evidenced with wicks on the bottom-side of price action; the trader can enter under the presumption that the trend may be coming back.

There is no need to predict, nor should traders expect the powers of prediction to bring them much long-term benefit in the field of trading.

If the trend doesn’t come back, then bail for the smallest loss possible by using that support (and wicks) for stop placement…. And if the trend does come back, the trader gets to manage a winning position.

 

[XRAY27]

WRB:

This represents very long bar (wide range bar) or very long body (wide range body).

what that means??

These(WRB/s)are a result of high volatility or price shock..it some times acts like deceptor in price action..so observe and act

Let us see this in Nifty future chart on 5 th dec