My daytrading
- Thread starter Raghavacc
- Start date
- Status
Yesterday's chart with classical way of trading the market. I have not used oscillator to make the size of the chart more bigger thereby make it more visible
Pink=entry
Red= Stop/SAR
Green = Trailing stop/profit
Blue = Adds
Sky blue= Exit
I have a doubt in your 7th july first long trade....why you did not exit at break of 11.50 bar?? plz throw some light on how do your trail your Stop Loss.
Thanks
This chart belongs to 7th July.
This chart, I have taken to explain the difference between a reversal and a retest and when to anticipate them.
In the volume panel there are 2 arrows. One at around 11.15 (A) and the other at around 13.40 (B)
Any reversal or rally or down move requires 3 factors to materialze.
1.The strength represented by the close of the candle
2. The speed represented by the length of the candle and
3.The force /velocity by the volume corresponding to the particular candle.
--------------------------------------------------------------------
The 11.15 candle is a coconut tree (hammer).It has fantastic volume means the bulls rejected price from sliding further.Now are ready for reversal. However for the reversal now we need strength,speed and force. Those three factors we can gauge by corresponding 3-5 candles succeeding the reversal candle ( In this case its hammer ) .Now from 11.15 candle lets count no 1,2,3,4.
1.Candle closes in red .could not close above the hammer.
2.Though a green candle.Just mange to close at the close of previous candle.
has a long wick means bears are still alive.
3.This candle closes inside the wicks of previous candle. Also has long wicks means bears are still putting pressure.
4.This one also closes inside the wicks of previous candle means this rally has no strength and its invariably going to go for retest.Next 3 candles also suggest the same.
--------------------------------------------------------------------
Now look at 13.40 candle.(represented by second arrow in the volume panel.)
Bulls have managed to pull the price back with heavy volume from 5615 levels and are able to close it around 5625 levels.Again lets count.
1.Inside red bar .Closes above the open of the reversal bar.
2.Though this bar has upper wick it closes above the close.Volume also picks up.
3.Just closes above last candle .More or less no wick.Volume picks up.Bar has length.
4.Closes far above the close of previous candle. It has length.Thats enough to indicate that we are ready for some good upmove.
Once we grasp this aspect , we become good at taking low risk entries and also we are able to position ourselves appropriately considering whether it’s a reversal or it’s a move heading for retest.
How to trade?.We have several options.
1-11.15 bar:If we go long with full position above the close of the hammer ( Because we are not sure immediately after the formation of hammer, whether its going for retest or not ).We can scale down substantially/fully after close of 3-5 bars after that hammer.
S/l is always below that hammer.
We can also establish partial positions on top of hammer and then add/ scale down after 3-5 bars after judging whether it’s a rally or a retest move.
2-13.40 Bar:Same as above .
Rishi,
I think you are talking about 13.50 bar???.As per my personal analysis at that point of time market was pretty solid and has still the stregth for further upmove. 30Min ,60 Min all were indicating this.
In case of a new comer he can partially scale down on break of that candle downside and keep the rest for further moves or Stop profit.
Please note that Trailing stop is a big subject and highly subjective and we shall deal with it in case we find more time.
I think you are talking about 13.50 bar???.As per my personal analysis at that point of time market was pretty solid and has still the stregth for further upmove. 30Min ,60 Min all were indicating this.
In case of a new comer he can partially scale down on break of that candle downside and keep the rest for further moves or Stop profit.
Please note that Trailing stop is a big subject and highly subjective and we shall deal with it in case we find more time.
For an amateur the green candle means market is going up and a red candle means market is coming down.
For a price action trader every candle has absolute meaning. In the above chart most of amateurs get frustrated. They go long, go short, again go short, long…..then get frustrated and lose their calm and get angry and go away.
A price action trader knows the meaning of each candle and he sits calmly on his chair and waits for that event i.e:A winner out of 2 forces. He joins them…That’s where he gains his edge over system traders.
A.A hammer at 11.15.Then price goes for retest.
B.Price tries to close below hammer. Bulls come up with volume and close above the low of hammer.
C.Bulls close exactly at the high of previous red bar
D.Bhalloos win and close in red.
E.Both parties are at equal strength.
F.Again no result.Fierce battle
G.Bulls take charge could not close above previous bar.
H.Bhalloo’s comeback heavily and close this red bar at the extreme low of B-G bar range.
I.Noticing this danger bulls comeback and push the price up.However Bhalloos push the price back and it closes as a green shooting star.Just notice the low of the hammer and that range.Those are the supports.
J.Gaining the strength in last 2 bars, Bhalloos break the low of this B-I and push the price to 5615 area.Bulls come back heavily with volume and close the price above the close of last bar. It is an indication of strength of bulls.
Just imagine , a spring of 6 ft compressed to a 2 feet length and then leaving it. It jumps with force like a Kangaroo….
K.Bhalloos again make a small attempt results in an IB. Starting from next bar see the close, speed, strength,length and force/velocity.
Then the bigger result.
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
-
-
-
