Price Action Trading Method.

[TraderDude]

I am trading with small positions and still working on patience and discipline. I am getting a feel of the inner demons

Studying and practicing since January but still a long way to go. Today also was a bad day. Took long in M&M at double bottom pinbar (MACD divergence) but was unsuccessful. Looks like I also need to work on the stock selection. The one I don't trade goes in favor and the ones I trade gives whipsaw. I did not trade Reliace capital Or Infra as I was doubtful :annoyed:

Thanks
Pallavi

Market was ranging today. Not many opportunity. Found only two of them. As for M&M , there was no trade. This is where patience is required. No setups on Reliance infra or capital.

Take the trades ONLY when our criteria matches, otherwise there is just no trade. you will need to be patient as long as it takes to get the right setup. It will take some time to do this. Keep practicing.

Had we got the M&M setup @ 700. It would have been great. But it did not. No worries. Next time..

 

[TraderDude]

like i said in previous post. Not may opportunities today except for two. SBIN and BAJAJ AUTO. Nifty was just ranging. No move at all.

Managed to get one trade today though.

 

[pdeoghare]

Market was ranging today. Not many opportunity. Found only two of them. As for M&M , there was no trade. This is where patience is required. No setups on Reliance infra or capital.

Take the trades ONLY when our criteria matches, otherwise there is just no trade. you will need to be patient as long as it takes to get the right setup. It will take some time to do this. Keep practicing.

Had we got the M&M setup @ 700. It would have been great. But it did not. No worries. Next time..

Thanks!
This is super helpful and quick indeed. I hope I am not distracting your thread. If so I can start my trading journal where I post these type of charts and trades. I think it is best learnt from mistakes

- Pallavi

 

[TraderDude]

No problem , you can post here and we can go over the trades. This thread is for learning after all. There is no point in me post all good trades here, if it is not helpful to people to do it on their own..

 

[gambler]

No problem , you can post here and we can go over the trades. This thread is for learning after all. There is no point in me post all good trades here, if it is not helpful to people to do it on their own..

Hi traderdude, keep posting ur trades and charts its very helpful
Thanks!

 

[pdeoghare]

This is the trade in Reliance capital that I thought I missed. Let me know which condition it does not fulfill.

1. Pinbar at support/resistance 347
2. Last bar closes above pinbar so entry above it
3. Trendline respected for additional confluence

 

[murthyavr]

pdeoghare,

For a support line, the pivot LOWs are connected to form the trendline.
For a resistance line, the pivot HIGHs are connected to form the trendline.

If you draw the correct falling trendline in this case, perhaps entry setup may
have to be redesigned.

In that case, there is also a probability that there is no setup at all!

 

[TraderDude]

This is the trade in Reliance capital that I thought I missed. Let me know which condition it does not fulfill.

1. Pinbar at support/resistance 347
2. Last bar closes above pinbar so entry above it
3. Trendline respected for additional confluence

Well , there are many things why i would not take this setup. even though the pin worked.

This is where we need to be very cautious, if we take trades like these , we will be in loss long term.

1. No big round no.
2. No fib or trendline confluence.
3. 60m chart shows bearish trend.


We must be very very picky in our trades. We cannot go and take just about any setup that has a pinbar. We need good amount of confluence and only then the trade has a decent chance of moving in our direction.

If you try to take this kind of setup the next time, it may not work, because you are trading based on just S/R and pins, but we need more , at least a trendline or some fib level to give us enough confidence that a level will hold. Remember there are many S/R levels, but the significant ones will have some fib level or trend line confluence.

We don't want to take just any setup. We want to take the best setups and they are around. Look at SBIN today, although it moves along with NIFTY, the nifty was ranging, but SBIN made a good move today.

If you look at SBIN , we had the first pin @ 2173, but i did not take it why?. because i could not find enough confluence to give me confidence to take the trade. But we got a second opportunity @ 2158 and I caught a nice 22 point move. This is the kind of setup we need to take. The setup must have room to make good move as well or else we will not make much profit.

Once you spot a setup, we must look for the exit , before we enter. If the exit does not give good move, then we just don't take it , even though it moves in our direction.

Another point is if you trade low price stocks, you need a big order to make decent profits and big orders are difficult to get filled as price moves quick sometimes. For low price stocks , best to trade futures or options, but then again to trade F&O , you need a decent account size.

So in summary, the best setup must meet the following criteria.

1. Good amount of confluence.
2. Good R/R ratio.
3. Low risk.

Have a nice weekend!!

 

[pdeoghare]

Great explanation and suggestions :thumb:. This is where all beginners make mistake. We just want to get into trade quickly and forget these things.

Onwards and upwards, the journey continues

- Pallavi

Well , there are many things why i would not take this setup. even though the pin worked.

This is where we need to be very cautious, if we take trades like these , we will be in loss long term.

1. No big round no.
2. No fib or trendline confluence.
3. 60m chart shows bearish trend.


We must be very very picky in our trades. We cannot go and take just about any setup that has a pinbar. We need good amount of confluence and only then the trade has a decent chance of moving in our direction.

If you try to take this kind of setup the next time, it may not work, because you are trading based on just S/R and pins, but we need more , at least a trendline or some fib level to give us enough confidence that a level will hold. Remember there are many S/R levels, but the significant ones will have some fib level or trend line confluence.

We don't want to take just any setup. We want to take the best setups and they are around. Look at SBIN today, although it moves along with NIFTY, the nifty was ranging, but SBIN made a good move today.

If you look at SBIN , we had the first pin @ 2173, but i did not take it why?. because i could not find enough confluence to give me confidence to take the trade. But we got a second opportunity @ 2158 and I caught a nice 22 point move. This is the kind of setup we need to take. The setup must have room to make good move as well or else we will not make much profit.

Once you spot a setup, we must look for the exit , before we enter. If the exit does not give good move, then we just don't take it , even though it moves in our direction.

Another point is if you trade low price stocks, you need a big order to make decent profits and big orders are difficult to get filled as price moves quick sometimes. For low price stocks , best to trade futures or options, but then again to trade F&O , you need a decent account size.

So in summary, the best setup must meet the following criteria.

1. Good amount of confluence.
2. Good R/R ratio.
3. Low risk.

Have a nice weekend!!

 

[pdeoghare]

Got the mistake. Will study over the weekend to make it better

Thanks
Pallavi

pdeoghare,

For a support line, the pivot LOWs are connected to form the trendline.
For a resistance line, the pivot HIGHs are connected to form the trendline.

If you draw the correct falling trendline in this case, perhaps entry setup may
have to be redesigned.

In that case, there is also a probability that there is no setup at all!