My daytrading

[Raghavacc]

Raghav,
Today classic example of price and volume relation in NIFTY found.....

I m following your thread very closely since long.......but today able to use that knowledge.......in finding weakness in market very early........by simply price-volume action...as shown in chart...
.......Thanks Ragav.........for posting your valuable thoughts and spending precious for us.......

Regards
Aaplana

Great going and sweet chart with excellent application of mind as well as technique.

some of the tools to gauge the weakness of any party can be-

1.Movement with lower volume
2.low Strength,speed and force of the move as I explained earlier
3.When it fails to break the previous swing high.
4.Divergences in stoch.

 

[balasoft80]

Hello Raghav,
Could you please look into the attached image? I have drawn fib level from yesterday's high to today low at around 9:30 AM. As per fib level 38.2% retracement was successful and go for short just below 23.6% which is around 5565 and SL just above 50% which is around 5584. Please let me know if anything wrong in the chart.

As per fib, There are 4 types of trades(2 in uptrend and 2 in downtrend)

In uptrend, draw fib from low to high
1. Go Long just above the next level when you see bullish price action like hammer and all in the retracement levels.
2. Go Short = ? when
In downtrend, draw fib from high to low
3. Go short just below the next level when you see bearish price action like shooting star, inverted hammer in the retracement levels.
4. Go Long = ? when

Could you please explain me the point #2 and #4 when your time permits?

Also, is there any reason I couldn't attach the image in traderji? My allowed size only 100 KB .

Thank you so much for your time

Thanks
Bala

 

[adityasaraf007]

Hi Bala, go through this thread to know how to post the charts over here.....

However, I would prefer imgur.com instead of imageshack.us......... Imageshack starts blocking some of the charts.....

 

[Raghavacc]

Hello Raghav,
Could you please look into the attached image? I have drawn fib level from yesterday's high to today low at around 9:30 AM. As per fib level 38.2% retracement was successful and go for short just below 23.6% which is around 5565 and SL just above 50% which is around 5584. Please let me know if anything wrong in the chart.

As per fib, There are 4 types of trades(2 in uptrend and 2 in downtrend)

In uptrend, draw fib from low to high
1. Go Long just above the next level when you see bullish price action like hammer and all in the retracement levels.
2. Go Short = ? when
In downtrend, draw fib from high to low
3. Go short just below the next level when you see bearish price action like shooting star, inverted hammer in the retracement levels.
4. Go Long = ? when

Could you please explain me the point #2 and #4 when your time permits?

Also, is there any reason I couldn't attach the image in traderji? My allowed size only 100 KB .

Thank you so much for your time

Thanks
Bala

Bala,

Its good to see that you have made attempt and yes you are right in drawing fib and it had strong resistance at 38.2 and it could never cross that level during the day.

2 long trades and 2 short trades in a day? .hmmm.Listen- No transport Company puts a new driver to Volvo bus in the beginning.They are all experienced. Other day I was talking to a driver from Karnataka Road Transport Corporation . He told that they have lost 48 highly experienced Volvo bus drivers during last 8 years in highway accidents.It shows Even experiened Volvo drivers often fail to control the vehicle due to its powerfull Engine,speed and agility.So the way for new drivers is to start with TATA,LEYLAND and may be Marcopolo's.Likewise DO NOT TRY TO GO TRADING IN BOTH DIRECTIONS WHEN MARKET IS IN A FURIOUS TREND AND BOTH PARTIES ARE FIGHTING LIKE 2 STREET DOGS.. START WITH SAFE PATTERNS. ONCE YOU GET EXPERIENCE YOU CAN DO WAHTEVER YOU WANT. SO FAR I HAVE NOT SEEN ANY MARKET RUNNING AWAY OR ABSCONDING.

Scalping is not every one's game. Even highly experienced traders on a given day struggle to make money out of it.

Then anti trend trades. Anti trend trades are like "A person running towards an incoming bullet train" .You know the result.

In my next post I will show you what are the safe trades and how a beginner should make use of such patterns.

 

[balasoft80]

Thank you Raghav. The another question that I would like to clarify is, pressure cooker. In daily chart we happen to see continueously 4 IB with in the range of 5546 to 5667 and It has breaked today correct? is it good to go for short in break of 5546? or we have to avoid this?

regarding the above post, Please find the below chart and this is the one I was trying to ask. 65 pts in upmove and 80 pts in downmove in sameday.

Thank you so much for your invaluable time
Bala

 

[Raghavacc]

A massive support once broken becomes massive resistance


5 Min chart

A. Bulls run for cover .These bulls should be the one who could not cover yesterday.Point to note is ,In market covering also constitutes a rally.

B.First blow by Bhalloos.Look at volume and look at candle.Its a clean shaven candle closed at the low. Further its at 38.2.Agressive traders go short here putting high of the day as S/L.

From B-C what happens is interesting. Bulls try again and again to close the price above candle B in vain.

a candle before candle C was a massive effort by bulls .It closes above Candle B. Now they need to take it above the high of the day to make any headway.

C. This candle says it all. Bulls give up. Volume with a shooting star.That's what beginners should trade.Second attempt..That's where all pro's come with big money and pound the market.Just calculate the R:R.

2 Pro's, one trading pro. and another professor , both make judgment after second attempt.

A trader judges strength /weakness of a price after second attempt
A professor judges the strength/weakness of a student after "Second Attempt".

If traded with proper position size ,such safe patterns can do wonders to your trading account.

D. Down move was not a strong on .It crawled,still enough to takeaway good money out of market.Where was next support?.Low of the day.

E.The support at the low of the day was not at all convincing.

30 Min chart.

After a big bull candle next red IB .Next 2 doji candles were squeezed back to their open depicting the power of bhalloo's.Then a last attempt by bulls. They take the price above last 3 candles. However Bhalloos bring it back all the way and close inside the wicks of last candles.Now get ready for a coaster ride...

 

[Raghavacc]

Thank you Raghav. The another question that I would like to clarify is, pressure cooker. In daily chart we happen to see continueously 4 IB with in the range of 5546 to 5667 and It has breaked today correct? is it good to go for short in break of 5546? or we have to avoid this?

regarding the above post, Please find the below chart and this is the one I was trying to ask. 65 pts in upmove and 80 pts in downmove in sameday.

Thank you so much for your invaluable time
Bala

Do we go and open a short position as soon as it breaks the IB?No.The key for opening any position under this method is what does price do at particular level?Today it opened under 5546 i.e:under the low of IB .Do we trade first candle itself? No. We wait for the price to react and confirm.Did it confirm ? No.Price went upside.

Once price moves to 5580 levels ,the same open of 5540 level becomes the low of the day and price has to prove that it breaks that low before we open any positions. What does it do when it reached the low of the day again?? Thats the answer for your first question.
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Second question: How many days in a week/month/year we have trends in both the directions?just do some home work and let me know.

Still if it moves in both directions we take longs/shorts only when our tools confirm reversals. I have explained enough on this.

 

[apparichitudu]

hi raghav.. i have sent u a pm, please check it friend...

 

[balasoft80]

Thank you Raghav for detail explanation. Also answer for your question, I was able to find 4 times the same scenario in the month of june.

Thanks
Bala

 

[ryan4ucar]

Telco gaps down through the established daily support.

Then a wide red 5 Min bar and @50% of that bar a double top and then a moderate down move.

This is not a double top , a double top occurs in an extensive upmove on high volumes , what we might call a oversold condition , here a lot of people look to sell thats y a double top occurs , in this case its a retracement on weakness.