Price action with Candlestick Analysis(No indicators)

[Vertigo_1985]

Hi Vertigo,

Missing your charts, can you please update your trades on uco bank with charts at your convenience.

Regards,
Merchant

UCO BANK :-

 

[ryan4ucar]

UCO BANK :-

Afew points from my side vertigo . trying to short a strong stock right at the open(even if its 50% up) is a crazy idea , if the stock burst through againt you on the open you wont get prices you think youll get out at , at the open you have to always look for pull backs to buy strong stocks 72.5 was a area to get long uco on athe open at 9.28 this is what trend followers do.

Even if you had shroted you would have got out near the top of that spike at 9.34 , good traders dont assume they gather info and then trade ,now when this spike failed and made a lower high at 9.43 u can think of short as there is a bit of confirmation that buyers are not strong ... but again when the stock held 72 for 10 mins it was showing strength on the chart good place to get long for me 10 more mins of side ways movement and i woulf have loaded . I din trade it because of earnings ,after earning though i lost track of it , your trading in the earings i thought was pretty good but dont know if you get out after steep down moves and reestablish with more size later in the retrace ment.

All in all looks like you are doing preety well and improving every day , but youull get smoked more times than not if you short strong stocks on the open

 

[DWeeP]

I am starting in Price Action Trading, downloading and watching 5GB of video lessons by Al Brooks.
Its a mammoth task.
But PAT seems profitable.
Hope to learn from you guys.

 

[Vertigo_1985]

Afew points from my side vertigo . trying to short a strong stock right at the open(even if its 50% up) is a crazy idea , if the stock burst through againt you on the open you wont get prices you think youll get out at , at the open you have to always look for pull backs to buy strong stocks 72.5 was a area to get long uco on athe open at 9.28 this is what trend followers do.

Even if you had shroted you would have got out near the top of that spike at 9.34 , good traders dont assume they gather info and then trade ,now when this spike failed and made a lower high at 9.43 u can think of short as there is a bit of confirmation that buyers are not strong ... but again when the stock held 72 for 10 mins it was showing strength on the chart good place to get long for me 10 more mins of side ways movement and i woulf have loaded . I din trade it because of earnings ,after earning though i lost track of it , your trading in the earings i thought was pretty good but dont know if you get out after steep down moves and reestablish with more size later in the retrace ment.

All in all looks like you are doing preety well and improving every day , but youull get smoked more times than not if you short strong stocks on the open

Thanks for your opinion and kind words, improving each is the purpose .
The premise for the first trade was -
After a big move day there was more probability of a range day (Z day). Weakness after breaking high/low of the day means that price isn't getting enough buyers/sellers to sustain above it. So when it failed to sustain above high my expectation was of more selling to come.
As this is a counter trend the profit target has to be managed in that way(keep it small and tight).
Regarding stop-loss, right after my entry order i put stop loss order so other then some slippage loss sometimes i think the exit can be managed.
The probability of 2nd trade is definitely higher as we have already seen that sellers are interested in selling near high as visible in opening fall. Right now i don't have enough evidence to not take this trade. Maybe we can look in past data for similar setups, will work on it and inform you(till then not won't trade this setup).

After the high break my assumption was that it would trade in range. Breaking the range when testing. I just extrapolate the opening session action, so if it's sideways i will expect it to go it that way or strength in up then that way till price tells me that i am wrong.

I get out at fixed levels (where i expect opposite orderflow to come). Re-entry is only after a position is exited completely. After exit only if my setup conditions are met i enter again. If anywhere in chart i mention 'Possible entry' then it is for learning purpose.
Can you tell us your entry and exit technique on tcs chart for friday ? what's your entry trigger ?

Regards

 

[Vertigo_1985]

I am starting in Price Action Trading, downloading and watching 5GB of video lessons by Al Brooks.
Its a mammoth task.
But PAT seems profitable.
Hope to learn from you guys.

Do you have prior knowledge of price action trading? Dunno about his videos but books were hard to understand. Give us your view about it after you are done.
Best of luck .

Regards

 

[merchantp]

Do you have prior knowledge of price action trading? Dunno about his videos but books were hard to understand. Give us your view about it after you are done.
Best of luck .

Regards

Hi Vertigo,

In YTC I am on volume 2. iam not sure how many setups he has explained.But iam Intrested in only cpb and BP, so can you please guide which pages to read, I understand that all the 5 volumes are important but with your guidance I can just skim through some topics and study in detail the important ones. This is because iam in full time job and don't get much time.

Best Regards
Merchant

 

[Vertigo_1985]

Hi Vertigo,

In YTC I am on volume 2. iam not sure how many setups he has explained.But iam Intrested in only cpb and BP, so can you please guide which pages to read, I understand that all the 5 volumes are important but with your guidance I can just skim through some topics and study in detail the important ones. This is because iam in full time job and don't get much time.

Best Regards
Merchant

Setups come later and when they come you can easily skip them as they are mentioned one by one. Till then read everything that has been given. Before setups he has mentioned only process and i won't suggest to miss any.

Regards

 

[ryan4ucar]

Thanks for your opinion and kind words, improving each is the purpose .
The premise for the first trade was -
After a big move day there was more probability of a range day (Z day). Weakness after breaking high/low of the day means that price isn't getting enough buyers/sellers to sustain above it. So when it failed to sustain above high my expectation was of more selling to come.
As this is a counter trend the profit target has to be managed in that way(keep it small and tight).
Regarding stop-loss, right after my entry order i put stop loss order so other then some slippage loss sometimes i think the exit can be managed.
The probability of 2nd trade is definitely higher as we have already seen that sellers are interested in selling near high as visible in opening fall. Right now i don't have enough evidence to not take this trade. Maybe we can look in past data for similar setups, will work on it and inform you(till then not won't trade this setup).

After the high break my assumption was that it would trade in range. Breaking the range when testing. I just extrapolate the opening session action, so if it's sideways i will expect it to go it that way or strength in up then that way till price tells me that i am wrong.

I get out at fixed levels (where i expect opposite orderflow to come). Re-entry is only after a position is exited completely. After exit only if my setup conditions are met i enter again. If anywhere in chart i mention 'Possible entry' then it is for learning purpose.
Can you tell us your entry and exit technique on tcs chart for friday ? what's your entry trigger ?

Regards

Yes Exactly my point you have to trade setups that have maximum probability of working thats y i dont trade setups like dlf and hind unilvr breaking on lower volume than previous day as they statistically dont work in uncertain environments like these , but if we are in a bull market i definately take a look at them.

another reason for telling you about not taking the 1st trade against trend is , you get afraid to take the proper trade . i,e when the stock drops to 72.5 level , you take your profit but you form a negative bias for the stock as you think now it will range which is a big mistake as its more easier for the stock to pop then to range according to me cause yesterdays buyewrs will want to pop the stock hiher and the start the actual selling .

I have seen you keeping profit targets as days highs or lows , this is a big mistake if anythig these are beautiful points for me to add to my profitable positions , of course since its a mometum trade if it doesnt work get out quickly.


My analysis for tcs is below

Ill be a bit quick as i have to start my homework ,

As can be seen from the chart if a stock gaps up it can gap and go or it can fill the gap , in the fist 10 minutes a stock doesnt go down in case of gap up , i grow confidant about gap and go play ... usually i wait for a small consolidation (range) i start a feeler position about 1/4th my size so here i startes a small position at 1713 at 9.35 , the big level was at 1920 form as it apprached 1920 there was 5000 stock on fooer which got taken immediately so i got another 1/2 of my position in it went to 1923 and came back to 1920 and below i got ready to sell it and get out below 1716 but it was there for a sec and quickly went up to 1725 fater than down move this shows quick buying i bought another 1/4th at 1726 i think then i wait for the stock to slowdown after huge upmoves to take profit got out between 1743 to 1747 between 10 to 10.04

reentered long at 10.21 i think again as stock wasnt going down much it went up quicky to 1755 and came back in so got out at about break even then it trended lower for about 20 mins and started basing i usally keep a 10 min alarm for such stocks so i have a close watch on them , but i missed the the base formation between 10 43 to 11 or else i would have loaded up again , i tought 1750 was a good place to get in again after it got over that and held the level i staterd a small position and added on the new high , but as the stockmarket works nothing is ever certain got out breakeven in this , the stock broke the uptrend so i tought 1740 to 1745 was a good area to add i always get in early before the leves in strong stocks as they dont come to those exact level is they are really strong , so at 14.10 u startesd anothe position at 1743 but this din work and the stock just ranged, most of the times in a storng market this would have blasted higher.

Tom i expect this stock to gapup over 1750 if it comes 10 1740 ill load up again , if for some unlikely reason it starts below 1740 , say at 1730 beacuse of nifty and starts inching up ill load up as well cause i am trend follower

P.S vertigo was supposed to do a blog on intraday patterns as i had told you got busy with some guests at home will do it next week

 

[Vertigo_1985]

Trading stocks on 2nd day after a big move and posting some of my observations :-
2nd day after a big move day is often going to be a range day(called Z also).
We can use this knowledge and be prepared for 2nd days play. Observe sign of weakness in current trend such as failure to continue, lack of strength in minor swings in trend direction, break above swing high/low. After these signs
of weakness a break opposite to direction of trend after consolidation pattern
like triangle gives us signal that strength is now on opposite side.
Any trade if to be taken should be on this side now till it shows strength reversal.

DLF on 17-06-13

WOCKHARDT today -

BHEL today-

HUL on 18-06-13

Please give your opinion on above observations and share if you can find similar setups.

Regards

 

[Vertigo_1985]

I have seen you keeping profit targets as days highs or lows , this is a big mistake if anythig these are beautiful points for me to add to my profitable positions , of course since its a mometum trade if it doesnt work get out quickly.

Yeah, in momentum trades we can add position on those levels but currently i am trying to keep trade management as simple as possible and so i keep them at levels where opposite order-flow is expected. Once i become familiar with the setups i will work on my entries and exits. I like the way you make your entries, it reduces risk and allows us to trade bigger volumes. Will ask for your guidance when time comes .

if for some unlikely reason it starts below 1740 , say at 1730 beacuse of nifty and starts inching up ill load up as well cause i am trend follower

was watching it in opening and it failed to sustain below 1730 and was thinking who is buying ..guess what who came to my mind :lol: ....