Hi Friends,
I have a small doubt hope i will get answer here. Am doing trading on nifty from quite some time and usually watch 1 min candle stick charts. I usually search for few patters like bullish engulfing blah blah blah.. some times it works some times not. I want ur inputs how can i improve my trading style depending on this. how much relable are these candlestick patterns..and which patterns should we concentrate more .. i only do intraday trading
Thanks,
Nagendra
frankly nagen,
in my early days, even i was fascinated by these candlesticks.. there was a defined candlestick with its unique meaning...i tried applying these formations for intraday trading...AND I MESSED UP BIG TIME...
i realised that in the process of trying to figure out the "meaning" of these formations, you generally miss the bus, or you enter late or u get stopped out soon...
from that day, i had decided to ignore these technical indicators fully... i just keep a note of spot levels (which i usually share with this thread early morning) and utilise simple things like pivots, TBQ:TSQ, etc, which are easily seen & understandable during the tense moments of intraday trade... sometimes, i refer to RSI also, but only sometimes & just to confirm my entry into a position.
these candlestick patterns, technical indicators (on EOD basis, or 60 min basis) - i feel, can be used for positional trades... and that too, just to confirm the mood of the market...
one last thing - the more things/indicators you r dependent before making an entry, the more confused you'll become... this will even hamper you taking positions even in good trades...
for intraday trading, I just concentrate on the current day's charts while trading & mark out the various supports & resistances, look out for chartical formations, etc... and just try to play within these levels and collect my nifty points....
and i have set a target of 50 points for a day... i try to scalp atleast 10 points in each trade, thus, having a target of 5 such trades in 5 trading hours... not necessary, i just book out on 10 points... if i can see the target ahead, i book part & trail for rest...
set for yourself a mental target for nifty points... and try to break up those points in "n" trades to relax yourself....
REMEMBER ONE THING - NIFTY POINTS ARE OUT THERE WAITING FOR YOU... GO GET THEM WITH
A COOL MIND & EAGLE-LIKE EYES... GO FOR THE KILL AS SOON AS U SPOT ONE AND BOOK OUT FAST SOON, WITH NO EMOTIONS ATTACHED...(this is what i have really learnt from Asish sir from his trading posts - and i'll be always obliged to him for unknowingly teaching me this "bread & butter" trading strategy...
Also, kee oin mind that everyday is not a tradeable day; every hour is also not a tradeable hour - sitting out sometimes is aslo a good strategy than testing unknown waters...
for eg. today (and even yesterday), momentum returned in last hour of trade... just suck out your desired number of points and exit...