My daytrading
- Thread starter Raghavacc
- Start date
- Status
Hi Friends,
The next topic I am going to start is Fibs and Pivot levels.
Tommorrow is a last day of the month and once we get daily bar for tommorrow we will all the needed information for the month.
So for entire next month I would like to have the exercise for you.Let me elaborate what we are going to do.
--------------------------------------------------------------------------
We take the high and low of June month.we draw fibs 21,38,50 and 61% for the month and keep the figures besides.
=========================================================
we take same figures for june and calculate R1,R2,S1,S2 for the month and keep is besides.
=========================================================
Then every week for the last week completed we draw we draw fibs 21,38,50 and 61% for the completed week and keep the figures besides.
========================================================
we take same figures for the completed week and calculate R1,R2,S1,S2 for the completed week and keep is besides.
=========================================================
Now we have 4 tables.Monthly fibs,monthly pivots,weekly fibs and weekly pivots respectively.
Lets do like this.Keep the monthlies on a paper besides our system.If possible if comfortable for you we shall draw weekly fibs and weekly pivots on top of chart then.....
We shall observe how price reacts at that levels and what all patterns we get at those levels.This will give us a brief idea on how price behaves at those levels and may help us in the future to device a strategy.
Remember this exercise will run for entire month of July ....I will explain this once I get monthly chart tomorrow.
Are you ready?
The next topic I am going to start is Fibs and Pivot levels.
Tommorrow is a last day of the month and once we get daily bar for tommorrow we will all the needed information for the month.
So for entire next month I would like to have the exercise for you.Let me elaborate what we are going to do.
--------------------------------------------------------------------------
We take the high and low of June month.we draw fibs 21,38,50 and 61% for the month and keep the figures besides.
=========================================================
we take same figures for june and calculate R1,R2,S1,S2 for the month and keep is besides.
=========================================================
Then every week for the last week completed we draw we draw fibs 21,38,50 and 61% for the completed week and keep the figures besides.
========================================================
we take same figures for the completed week and calculate R1,R2,S1,S2 for the completed week and keep is besides.
=========================================================
Now we have 4 tables.Monthly fibs,monthly pivots,weekly fibs and weekly pivots respectively.
Lets do like this.Keep the monthlies on a paper besides our system.If possible if comfortable for you we shall draw weekly fibs and weekly pivots on top of chart then.....
We shall observe how price reacts at that levels and what all patterns we get at those levels.This will give us a brief idea on how price behaves at those levels and may help us in the future to device a strategy.
Remember this exercise will run for entire month of July ....I will explain this once I get monthly chart tomorrow.
Are you ready?
Raghav Ji, as VJAY ji has put...how to calculate S1,S2,R1,R2...& pivot also..because different traders/software have different calculation parameters...As regards Fib calculation..I have a excel calculator...(somebody gave it to me)..in which we are simply to put high/lows of previous day/previous week to get fib lvls..Now a question also...if we use fibs,pivots,r1,r2,s1,s2..all these things are sum sort of mathematical calculations..& market pays some sort of heed to them..so where cums the analysis of Price action/candle study/trendline etc etc..should not one trade on NUMBERS only??? or Numbers are a part of TA..?? or what..i would like to take words from you on this??
I will try to ease out Raghav's job to some extent. He will post corrections, if any.
1. As you said, there are different methods to calculate Pivot points. We shall follow some uniform method, as would be suggested by Raghav.
2. Finding Fib levels is very easy if you have Amibroker. Just draw Fib line between the identified top and identified bottom, and lines with different levels would appear. Otherwise, these levels will be posted by one of us every week - So, that's no problem.
3. These levels are not just numbers. Since all traders look at these levels, the price actions tend to be sensitive, when they reach these levels. At a particular support level, the price may test it and turn back northwards. Or at a particular Resistance level, the scrip may fail to cross it and come downwards. Raghav wants us to see these reactions, and of course, we can safely assume that his commentary would be there when something worthwhile happens in terms of price action.
So, making us observe the reaction of prices at various crucial levels is the mission Raghav has taken up. The interesting part is - he is going to explain all that in a near-live market.
1. As you said, there are different methods to calculate Pivot points. We shall follow some uniform method, as would be suggested by Raghav.
2. Finding Fib levels is very easy if you have Amibroker. Just draw Fib line between the identified top and identified bottom, and lines with different levels would appear. Otherwise, these levels will be posted by one of us every week - So, that's no problem.
3. These levels are not just numbers. Since all traders look at these levels, the price actions tend to be sensitive, when they reach these levels. At a particular support level, the price may test it and turn back northwards. Or at a particular Resistance level, the scrip may fail to cross it and come downwards. Raghav wants us to see these reactions, and of course, we can safely assume that his commentary would be there when something worthwhile happens in terms of price action.
So, making us observe the reaction of prices at various crucial levels is the mission Raghav has taken up. The interesting part is - he is going to explain all that in a near-live market.
Last edited:
Murthy is correct in all the points except one.i.e:I will be a mere spectator for this entire month during the exercise and it will be you all who will be in my seat and driving the exercise. No -ooh,aah,ouch. Put charts,discuss,debate .You are free to do .
Remember,I am going to be a student and you will be my teachers.Don't let your student down
Then once we compile everything I will come with my commentary.To start with I will give you the charts, base, how to do it.Don't worry...Let me see whether I can do that tonight or tomorrow.
Remember,I am going to be a student and you will be my teachers.Don't let your student down
Then once we compile everything I will come with my commentary.To start with I will give you the charts, base, how to do it.Don't worry...Let me see whether I can do that tonight or tomorrow.
Let me make the points clear.Please lets not look at point to point accuracy as its a zone which we are talking about.
Above is the nifty monthly chart ( One candle per one month).Now the month of june we have a hammer means price has closed upwards.This also means for the period of last 30 days the price is in uptrend
.Please lets not confuse ourselves with market overall trend.we are looking at only last 30 days and one monthly candle.
Now what I did? I took high of the monthly candle.-5650..I have drawn fib till low of the candle- 5175...Now Please note that I am talking about retracement levels. Now what is 23% retracement level?what is the 38% retracement levels?what is the 50% retracement levels?what is the 62%retracement levels?its 5540,5470,5410,5355 respectively.This means if Nifty retraces 23% it will reach 5540,if it retraces 38% , it will reach 5470........if it retraces 62% it will reach 5355.......Please grasp this concept.
Now same Monthly chart of Nifty but it is with
"Fib extensions".In sharekhan 1.4.9 there is no seperate tool for "Fib extensions".Now what do I do.I start from the low and drag the fib line till high of the bar.I automatically get 123,138,150 and 162..in this case they are 5760,5830,5890 and 5940 respectively.
What does this mean?
This means in case the trend continues its upward journey the first level look for is at 123% @5760.In other words trend got extended to the tune of 23% from current close/levels.say it further continues its journey .what is the next level to watch for ..it is at 138% @5830 means the trend got extended to the tune of 38% from current levels/close. so is 150% .....162%.....
For just one month please keep it is as 23%,38%,50%,62%,100%,123%,138%,150% and 162% respectively. It will be easy.....After one month you will clearly understand how exactly they work....
Similarly a weekly fib retracement chart and....
A weekly fib expansion chart
Last edited:
H Vikas,
Please make a note that there no right or no wrong in market. As long as something works we are there.
See the difference .A loser says "Nothing works for me".A winner says"I do what works".
What all I am trying to do here is take all good aspects of all the models and make a set of thinking which may work on all types of markets.
As long as something works we will welcome it with both the hands.
Please make a note that there no right or no wrong in market. As long as something works we are there.
See the difference .A loser says "Nothing works for me".A winner says"I do what works".
What all I am trying to do here is take all good aspects of all the models and make a set of thinking which may work on all types of markets.
As long as something works we will welcome it with both the hands.
Here is this exercise how we are going to calculate pivots.
==================================================
Weekly Pivots
1) Weekly Pivot Point=(Weekly High+Weekly Low +Weekly Close)/3
2) Weekly R1 =(Weekly Pivot x 2) – Weekly Low
3) Weekly R2 = (Weekly Pivot + Weekly High) –Weekly Low
4) Weekly S1 = (Weekly Pivot 2) – Weekly High
5) Weekly S2 = (Weekly Pivot –Weekly High) +Weekly Low
========================================================
Monthly Pivot
1) (Monthly Pivot=Monthly High+Monthly Low +Monthly Close)/3
2) Monthly R1 =(Monthly Pivot x 2) – Monthly Low
3) Monthly R2 = (Monthly Pivot + Monthly High) –Monthly Low
4) Monthly S1 = (Monthly Pivot 2) – Monthly High
5) Monthly S2 = (Monthly Pivot –Monthly High) +Monthly Low
=====================================================
I am aware that moment I say a word “Pivot” most beginners get confused.The reason is they see hundreds!! Of different formulas used by different people .Lets not keep arguing which is right one and which is wrong one.Afterall we are here to trade and profit.
Price for any period opens at a level, reaches high ,reaches low and then closes at a level. High ,low and close can be in any sequence.We do not consider open as its irrelevant.
It’s a technique of deciding potential resistance and support levels based on these figures.That's enough to have basics of Pivots.Now we are ready.
Can any one please come up with Monthly and weekly pivots for July and next week respectively? remember I am a student...
==================================================
Weekly Pivots
1) Weekly Pivot Point=(Weekly High+Weekly Low +Weekly Close)/3
2) Weekly R1 =(Weekly Pivot x 2) – Weekly Low
3) Weekly R2 = (Weekly Pivot + Weekly High) –Weekly Low
4) Weekly S1 = (Weekly Pivot 2) – Weekly High
5) Weekly S2 = (Weekly Pivot –Weekly High) +Weekly Low
========================================================
Monthly Pivot
1) (Monthly Pivot=Monthly High+Monthly Low +Monthly Close)/3
2) Monthly R1 =(Monthly Pivot x 2) – Monthly Low
3) Monthly R2 = (Monthly Pivot + Monthly High) –Monthly Low
4) Monthly S1 = (Monthly Pivot 2) – Monthly High
5) Monthly S2 = (Monthly Pivot –Monthly High) +Monthly Low
=====================================================
I am aware that moment I say a word “Pivot” most beginners get confused.The reason is they see hundreds!! Of different formulas used by different people .Lets not keep arguing which is right one and which is wrong one.Afterall we are here to trade and profit.
Price for any period opens at a level, reaches high ,reaches low and then closes at a level. High ,low and close can be in any sequence.We do not consider open as its irrelevant.
It’s a technique of deciding potential resistance and support levels based on these figures.That's enough to have basics of Pivots.Now we are ready.
Can any one please come up with Monthly and weekly pivots for July and next week respectively? remember I am a student...
Last edited:
- Status
Similar threads
-
-
In which month you achieved highest number of Net points in BNF or in NF Daytrading?- Started by TraderRavi
- Replies: 0
-
-
-
