Nifty Futures Trading Part 2 (Positional)

[Czar]

renuji,
tahnks for the link...wrt reliance,i had the exact same question posted in chart patterns thread(czar),please take time to post your thoughts...
thanks

L2T: dont mention brackets otherwise Renu Will -

 

[orderflow13]

alex, am looking forward to what the ET team has to say in tomorrow's weekly special...

since past few weeks, they have just been sticking to this dow range breakout of 11000 & 11750, to give directional momentum...

kinda traderji team vs/ et team huh? ,
in et,in derivative diary that analyst s.patra made an indicator he named it smart money ratio, he divide vix by near month put call ratio( not o.i.p/c),
I agree with his statement that lot of ppl interpret it incorrectly ,as they think its a fear index, as when vix low its good for market,as there is less fear and more stability. But history defers it. ...
If some one read pete najarian( also cnbc option expert),use it exactly opposite.When vix is high and market makes a major bottom,( as did happen on 26 to 28 aug.)its good for market as it shakes up weak hands,now on friday vix is so low with so much calls written, seems market not touched the low level yet.
i am lookin forward for his view on Monday paper. try to post here

 

[renu daga]

Gap Trading Strategies

Full Gap Up: Long

If a stock's opening price is greater than yesterday's high, revisit the 1-minute chart after 10:30 am and set a long (buy) stop two ticks above the high achieved in the first hour of trading. (Note: A 'tick' is defined as the bid/ask spread, usually 1/8 to 1/4 point, depending on the stock.)
Full Gap Up: Short

If the stock gaps up, but there is insufficient buying pressure to sustain the rise, the stock price will level or drop below the opening gap price. Traders can set similar entry signals for short positions as follows:

If a stock's opening price is greater than yesterday's high, revisit the 1-minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading.
Full Gap Down: Long

Poor earnings, bad news, organizational changes and market influences can cause a stock's price to drop uncharacteristically. A full gap down occurs when the price is below not only the previous day's close, but the low of the day before as well. A stock whose price opens in a full gap down, then begins to climb immediately, is known as a "Dead Cat Bounce."

If a stock's opening price is less than yesterday's low, set a long stop equal to two ticks more than yesterday's low.
Full Gap Down: Short

If a stock's opening price is less than yesterday's low, revisit the 1-minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading.
Partial Gaps

The difference between a Full and Partial Gap is risk and potential gain. In general, a stock gapping completely above the previous day's high has a significant change in the market's desire to own or sell it. Demand is large enough to force the market maker or floor specialist to make a major price change to accommodate the unfilled orders. Full gapping stocks generally trend farther in one direction than stocks which only partially gap. However, a smaller demand may just require the trading floor to only move price above or below the previous close in order to trigger buying or selling to fill on-hand orders. There is a generally a greater opportunity for gain over several days in full gapping stocks.

If there is not enough interest in selling or buying a stock after the initial orders are filled, the stock will return to its trading range quickly. Entering a trade for a partially gapping stock generally calls for either greater attention or closer trailing stops of 5-6%.
Partial Gap Up: Long

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, the condition is considered a Partial Gap Up. The process for a long entry is the same for Full Gaps in that one revisits the 1-minute chart after 10:30 am and set a long (buy) stop two ticks above the high achieved in the first hour of trading.
Partial Gap Up: Short

The short trade process for a partial gap up is the same for Full Gaps in that one revisits the 1-minute chart after 10:30 am and sets a short stop two ticks below the low achieved in the first hour of trading.
Partial Gap Down: Long

If a stock's opening price is less than yesterday's close, revisit the 1 minute chart after 10:30 am and set a buy stop two ticks above the high achieved in the first hour of trading.
Partial Gap Down: Short

The short trade process for a partial gap down is the same for Full Gap Down in that one revisits the 1-minute chart after 10:30AM and sets a short stop two ticks below the low achieved in the first hour of trading.

If a stock's opening price is less than yesterday's close, set a short stop equal to two ticks less than the low achieved in the first hour of trading today.

If the volume requirement is not met, the safest way to play a partial gap is to wait until the price breaks the previous high (on a long trade) or low (on a short trade).



this is one for ones who were interested in gaps,,,
for devang...and l2t

copy and pasted from good source....not my,,, material!!


and czar just wait for few days ur all smiliyes will eb banned!!!in this forum

renu

 

[coolboy007]

Crude below 100 $ a barrel the big psychological level is broken. Any positive impacts for mkts or just another good news which would be kicked in the *** by the mkts.

 

[learn2trade08]

thanks a ton renuji...
all the best!

Gap Trading Strategies

Full Gap Up: Long

If a stock's opening price is greater than yesterday's high, revisit the 1-minute chart after 10:30 am and set a long (buy) stop two ticks above the high achieved in the first hour of trading. (Note: A 'tick' is defined as the bid/ask spread, usually 1/8 to 1/4 point, depending on the stock.)
Full Gap Up: Short

If the stock gaps up, but there is insufficient buying pressure to sustain the rise, the stock price will level or drop below the opening gap price. Traders can set similar entry signals for short positions as follows:

If a stock's opening price is greater than yesterday's high, revisit the 1-minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading.
Full Gap Down: Long

Poor earnings, bad news, organizational changes and market influences can cause a stock's price to drop uncharacteristically. A full gap down occurs when the price is below not only the previous day's close, but the low of the day before as well. A stock whose price opens in a full gap down, then begins to climb immediately, is known as a "Dead Cat Bounce."

If a stock's opening price is less than yesterday's low, set a long stop equal to two ticks more than yesterday's low.
Full Gap Down: Short

If a stock's opening price is less than yesterday's low, revisit the 1-minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading.
Partial Gaps

The difference between a Full and Partial Gap is risk and potential gain. In general, a stock gapping completely above the previous day's high has a significant change in the market's desire to own or sell it. Demand is large enough to force the market maker or floor specialist to make a major price change to accommodate the unfilled orders. Full gapping stocks generally trend farther in one direction than stocks which only partially gap. However, a smaller demand may just require the trading floor to only move price above or below the previous close in order to trigger buying or selling to fill on-hand orders. There is a generally a greater opportunity for gain over several days in full gapping stocks.

If there is not enough interest in selling or buying a stock after the initial orders are filled, the stock will return to its trading range quickly. Entering a trade for a partially gapping stock generally calls for either greater attention or closer trailing stops of 5-6%.
Partial Gap Up: Long

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, the condition is considered a Partial Gap Up. The process for a long entry is the same for Full Gaps in that one revisits the 1-minute chart after 10:30 am and set a long (buy) stop two ticks above the high achieved in the first hour of trading.
Partial Gap Up: Short

The short trade process for a partial gap up is the same for Full Gaps in that one revisits the 1-minute chart after 10:30 am and sets a short stop two ticks below the low achieved in the first hour of trading.
Partial Gap Down: Long

If a stock's opening price is less than yesterday's close, revisit the 1 minute chart after 10:30 am and set a buy stop two ticks above the high achieved in the first hour of trading.
Partial Gap Down: Short

The short trade process for a partial gap down is the same for Full Gap Down in that one revisits the 1-minute chart after 10:30AM and sets a short stop two ticks below the low achieved in the first hour of trading.

If a stock's opening price is less than yesterday's close, set a short stop equal to two ticks less than the low achieved in the first hour of trading today.

If the volume requirement is not met, the safest way to play a partial gap is to wait until the price breaks the previous high (on a long trade) or low (on a short trade).



this is one for ones who were interested in gaps,,,
for devang...and l2t

copy and pasted from good source....not my,,, material!!


and czar just wait for few days ur all smiliyes will eb banned!!!in this forum

renu

 

[Sunil]

renu.

just wanted to summarise & confirm your gap trading trading strategies...

so, for initiating SHORT trades, in ANY case (gap up or gap down, full or partial) the general rule remains the same:
one should revisit the 1-minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading.

even for initiating LONG trades, EXCEPT IN FULL GAP DOWN SCENARIO, the general rule remains the same for other scenarios:
one revisits the 1-minute chart after 10:30 am and set a long (buy) stop two ticks above the high achieved in the first hour of trading.


Now, just wanted to clarify what does this mean:
revisiting after 10:30 am and setting the relevant order two ticks above/below the relevant level achieved in the first hour of trading level.

so, till what time we should fix that level... please confirm

 

[vangara_kris]

Dear frendz, the Slow Stochastics (5,3) on daily chart is entering in over sold zone but on weekly chart it is in mid-way down. So, i estimate mkt to take a relief rally after an initial dwnward jerk and i prefer to go long/buy 4400 call by keeping Monday's First Hour Low as SL. Comments/views welcome pl.
krishna

 

[renu daga]

sunil
frankly speaking
members will laugh on me,,,
but i smply copied / pasted just gave a lok and thought nice material ,,, but i dont tarde in gaps in this way

teh whoel part is understood,,
but revisit teh 1 min chart afetr 10/30..is alos beyond my levls

i thnk asish da could help us,,,some graet seniors or siant sir,,,( bt pls dont ask czar)

sorry
but when u egt comp cleared .. explain me also

renu
hehehe

 

[renu daga]

CZAR ,,,
did i say i am trading on siants method,,, or i am comparing his method with this gap
or i ahve commented on his gap strategy

i think NO
i simply said i dont trade on gaps in this way...
secondly the language a bit is not understood by me,,, so if nay seniors could help us...this i actaully menat in my english...but if u could not understood,,,tehn !!!

renu
how saint sir trades in gap,, fprm where does thsi questin arised?

 

[renu daga]

its all teh same... u commented on thing which he asked me,,,

either u catch ur nose this way / that way!!

renu