My daytrading
- Thread starter Raghavacc
- Start date
- Status
Gunavadhi,
Pardon me for taking time.
Coming back to subject,the question you have asked is not dumb but it is one of the best and difficult question even to the best of the traders.
First lets understand that trading is subjective and there are no written rules.So different traders use different technique to decide offloading their positions.Remember even the best traders to struggle to define "EXIT"
.Thats why the seniors say remain in the trend till it exhausts.Most of losing traders because they exit early in the trend.
Ok the technique now I am going to present is for the trending day/period.It
is based on theory Impulsive wave A=Impulsive wave B.Look at the below image.
Wave 1 Is impulsive and wave 2 is also impulsive.Then in between these 2 waves a small red IB.Not necessarily one Red candle you can have several red candles in the corrective phase.But its an example. Now in impulsive move 1 we have 30 points upmove.
When an IB forms we have 2 chances. One it can reverse or it can continue the trend.Hence we put orders on both the sides.Of course we make use of other tools also to takeout whether its continuing the trend or reversing.
=========================================================
ORDER CAUGHT ON LONG SIDE
Here if my order is caught on the long side I exit 75% of positions when it moves 30 points upside = the number of points upmove in Wave -1.Rest 25% I trail closely.
=======================================================
ORDER CAUGHT ON SHORTER SIDE
If the order is caught on the shorter side -I cover 50% of the positions at 50% of the move =15 points in this exa and bring the S/L to breakeven.If the price moves for 30 for full 30 points I cover half of remaining 50% of positions.i.e:25% of overall position.trail the rest till trend exhausts.Also I do add back 50% of original position if the price breaks the LOW OR STARTING POINT OF WAVE 1 as it indicates a counter trend.
=========================================================
Reverse the same when impulsive wave is a downtrend.
========================================================
There so many permutations and combinations hence I have covered just the gist of it.Take time read multiple times if needed be and then ask questions as nothing and no one is perfect in market. Whatever we do in trading has always a room for improvement.We are evolving day by day.
Traders also use next higher TF for deciding target mostly in Forex.Then how to decide target in sideways market - These we will discuss later.
Pardon me for taking time.
Coming back to subject,the question you have asked is not dumb but it is one of the best and difficult question even to the best of the traders.
First lets understand that trading is subjective and there are no written rules.So different traders use different technique to decide offloading their positions.Remember even the best traders to struggle to define "EXIT"
.Thats why the seniors say remain in the trend till it exhausts.Most of losing traders because they exit early in the trend.Ok the technique now I am going to present is for the trending day/period.It
is based on theory Impulsive wave A=Impulsive wave B.Look at the below image.
Wave 1 Is impulsive and wave 2 is also impulsive.Then in between these 2 waves a small red IB.Not necessarily one Red candle you can have several red candles in the corrective phase.But its an example. Now in impulsive move 1 we have 30 points upmove.
When an IB forms we have 2 chances. One it can reverse or it can continue the trend.Hence we put orders on both the sides.Of course we make use of other tools also to takeout whether its continuing the trend or reversing.
=========================================================
ORDER CAUGHT ON LONG SIDE
Here if my order is caught on the long side I exit 75% of positions when it moves 30 points upside = the number of points upmove in Wave -1.Rest 25% I trail closely.
=======================================================
ORDER CAUGHT ON SHORTER SIDE
If the order is caught on the shorter side -I cover 50% of the positions at 50% of the move =15 points in this exa and bring the S/L to breakeven.If the price moves for 30 for full 30 points I cover half of remaining 50% of positions.i.e:25% of overall position.trail the rest till trend exhausts.Also I do add back 50% of original position if the price breaks the LOW OR STARTING POINT OF WAVE 1 as it indicates a counter trend.
=========================================================
Reverse the same when impulsive wave is a downtrend.
========================================================
There so many permutations and combinations hence I have covered just the gist of it.Take time read multiple times if needed be and then ask questions as nothing and no one is perfect in market. Whatever we do in trading has always a room for improvement.We are evolving day by day.
Traders also use next higher TF for deciding target mostly in Forex.Then how to decide target in sideways market - These we will discuss later.
Nifty 5 Min TF
Nifty Daily TF
Obvious.Self explanatory.Y'days horizontal line proved to be stiff res. Price closed right at that spot.
In a daily its a doji with higher close Also an inside bar.A gap up and sustainance, a strong B/O and retest or early morning Pivot break out above this inside bar all will lead to fire crackers .On the downside bears have to sweat a lot if they really have to reverse it....
Nifty Daily TF
Obvious.Self explanatory.Y'days horizontal line proved to be stiff res. Price closed right at that spot.
In a daily its a doji with higher close Also an inside bar.A gap up and sustainance, a strong B/O and retest or early morning Pivot break out above this inside bar all will lead to fire crackers .On the downside bears have to sweat a lot if they really have to reverse it....
Quote:
Originally Posted by krish4166 View Post
raghav,
For an entry on IB strategy for buy or sell on 30 min TF, how many point to look forward to book profits.
Hello Krish,
I would write separately on this.Pls look forward to my post on that subject.
Reply With Quote
18th june 5:51 pm
Raghav,
The above post 723 replied by you is almost clearing my doubt.
Originally Posted by krish4166 View Post
raghav,
For an entry on IB strategy for buy or sell on 30 min TF, how many point to look forward to book profits.
Hello Krish,
I would write separately on this.Pls look forward to my post on that subject.
Reply With Quote
18th june 5:51 pm
Raghav,
The above post 723 replied by you is almost clearing my doubt.
Raghav,
On the attached Image there are two IB bars and how to take targets on this IB bars.
http://imgur.com/EirJn
On the attached Image there are two IB bars and how to take targets on this IB bars.
http://imgur.com/EirJn
Tata Motors.
I took 2 trades for 15 Rs. positive move and my day is over early in the day!!.
1St trade :Long @ 995 S/L below Lowe of the day.Reason:Gap sustains and then breaks high of the day. Covered at 1010. Reason : WRB with extreme volume and also a big round number 1000.
2nd trade : After that extreme bar next is a doji, then a hanging man then a shooting star.Thats power of price action.Entry below the doji bar for a 5 Rs. move.
Covered 75% trailing 25%.I can comeback by 3PM and close it if the S/L is not taken.
I took 2 trades for 15 Rs. positive move and my day is over early in the day!!.
1St trade :Long @ 995 S/L below Lowe of the day.Reason:Gap sustains and then breaks high of the day. Covered at 1010. Reason : WRB with extreme volume and also a big round number 1000.
2nd trade : After that extreme bar next is a doji, then a hanging man then a shooting star.Thats power of price action.Entry below the doji bar for a 5 Rs. move.
Covered 75% trailing 25%.I can comeback by 3PM and close it if the S/L is not taken.
Tata Motors.
I took 2 trades for 15 Rs. positive move and my day is over early in the day!!.
1St trade :Long @ 995 S/L below Lowe of the day.Reason:Gap sustains and then breaks high of the day. Covered at 1010. Reason : WRB with extreme volume and also a big round number 1000.
2nd trade : After that extreme bar next is a doji, then a hanging man then a shooting star.Thats power of price action.Entry below the doji bar for a 5 Rs. move.
Covered 75% trailing 25%.I can comeback by 3PM and close it if the S/L is not taken.
I took 2 trades for 15 Rs. positive move and my day is over early in the day!!.
1St trade :Long @ 995 S/L below Lowe of the day.Reason:Gap sustains and then breaks high of the day. Covered at 1010. Reason : WRB with extreme volume and also a big round number 1000.
2nd trade : After that extreme bar next is a doji, then a hanging man then a shooting star.Thats power of price action.Entry below the doji bar for a 5 Rs. move.
Covered 75% trailing 25%.I can comeback by 3PM and close it if the S/L is not taken.
Raghav Sir,
I have a small doubt...on your trade of tata motors...do you have involved the news factor in tata motors as people were expecting that supreme court will have temporary relief. the moment news were out trades has taken agressive position resulted wrb after that as you have mentioned doji went down to 1001 level.
Now my question is If the gap up is sustained in some times says couple of hours is it always result wrb.
what is the significance of 1000 round figure.
I am learning alot from you. gratitude is immensely felt. i wish u all the best
regards,
thanks
P.s
while asking this there was window down side it went to tata motors 999 from 1005. what amuse me is your confidence that you will come back at 3.pm to close the position as if you have seen this as if its COMING.
Last edited:
Hi Bikashkumar,
Welcome to this thread .Your first question itself is highly professional and objective means you are putting all the efforts towards becoming a successful trader.Excellent.Keep it going.:clapping:
My friend Bala also asked same question sometime back. Hence I am answering both of you together.
Your first question.News ,Gap and big round number 1000.
News:I never trade any news, neither they are relevant for me. Believe me I have not seen any business channels for last 3 months!!.The only 2 tools I make use of are
1.Mind
2.Chart
News are the tools used by brokers,operators,floor traders to catch hold of some herds by riding on their emotions.Nothing more nothing less. Please note that market has a mechanism called Factoringmeans Market discounts all the news and events for a company well in advance and also of its effects on its valuation of shares .Putting it simply the price which we saw today of TATA MOTORS is not the price on 29-6-2011.It is a price of TATAMOTORS may be of 31-12-2011 or 31-3-2012.Hope you got the point.News can make some temporary moves but it cant change the rhythm and flow of the price unless its a very big news. We are not bothered about this shakeouts as we have S/L and SAR in place.We have seperate set of people who look to trade news.Let them do it.
Big round number 1000.It is a psychological marks like a century.At big round numbers bulls and bears fight like anything as its like a Line of control and if you allow your enemy to cross that they will create havoc.Hence you can make big trades if you learn what is happening at that number at a particular point of time.Just make out who is strong at that place and join them .Here we have a big WRB.Extreme volume. Then a big Doji,Hangman and the shooting star means there is no followup by bulls and even after a slide , bulls needed to comeback as early as possible to take it to new highs. They did not. Price pulls back only to half of the WRB that is too at crawling pace and bears comeback after lunch to pull the price further down.
Do not worry.Practice.Simulate them on 1000s of charts.The trading and success becomes your second nature.You will get confidence
All the best to you my friend.
Raghav:
I have inserted numbers 1 to 9 on the same chart you have posted.
Now:
1. The close of candle no. 1 has just touched the high of the day. The close has not crossed the high of the day. However, there were good volumes on this candle.
2. Candle nos. 2 to 6 could not close above the high of the day. Volumes were not much for these candles.
3. Candle no. 7 however closed above the high, but no much volumes here also. 8th candle was almost indecisive, red in colour, but had good volume.
4. Finally it was candle no. 9, which went well past the high, with good volume and closed far above the high.
Now, with the status of the candles as above, my questions are:
A. After which candle you have taken the decision to go long? You said you entered at 995, but where was it?
B. Or, did you place a limit order above 995, in anticipation of a break-out?
If you take a little time to explain in detail, it will help me a lot in taking proper trading decisions..
Thank you..
- Status
Similar threads
-
-
In which month you achieved highest number of Net points in BNF or in NF Daytrading?- Started by TraderRavi
- Replies: 0
-
-
-
