Price action with Candlestick Analysis(No indicators)

[ryan4ucar]

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 .





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: ....

ya once in profit i like to add on new lows or highs on trending stocks , in range plays i usually use yesterdays low highs to get out major part of the stock...

may be somebody was stalking our discussions here about 1730 heheh for a lot of people those are amazing prices to buy indians always like discounts 1730 proved to be important level as it traded there 3 times and went up , i took a stab at it once in the morning but after 10 once it failed below 1740 i lost heart ... trivia question for you can you tell me y i chose may be 1730 as a level

 

[ryan4ucar]

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

Good work on your analysis would like to add that you have to realise also the kind of market we are trading , this is anews based ,market hence very uncertain every day , hece failed 2nd day patterns like dlf and hindunilvr will occur , wock pharma fell 6 % and almost 11% today so bottom pickers come after large fall you have to realise this pattern ,

Before the breakdown at 168 in bhel happened , it looked more or less like the dlf failed breakdown the second day .. you have to be able to tell thenm apart to have an edge... one way to do it is volume while the dlf breakdown 2nd day was with less volume , bhel breakdown was more or less the same volume as previous day , hence you get a bit confidence in shorts.

Also vertigo when you draw levels on a 1 min chart remember longer the level line , more the importance , shorter the line least the importance , so a 10 min level just drawn has lower importance than yesterdays swing high or low with volume(refering to your hindunilvr example 700 is the more imp level if you are considering short ).

 

[Vertigo_1985]

trivia question for you can you tell me y i chose may be 1730 as a level

well.. some may have bought because it's a whole number, some because of 50% fib retracement, some who identified sideways and got in seeing it failing to sustain below 1730 and your reason was i think because :-
1. You were playing along long term uptrend.
2. Around 1720 is the support zone.
3. You want to trade strong stocks so you want to see it fail around 1730 level rather than around 1720.
hope i am right

 

[DWeeP]

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

No prior knowledge of PAT but good general charting and technicals knowledge.
Videos are not hard to understand but quite lengthy and boring sometimes.
Still trying to watch from my busy schedule!

 

[ryan4ucar]

well.. some may have bought because it's a whole number, some because of 50% fib retracement, some who identified sideways and got in seeing it failing to sustain below 1730 and your reason was i think because :-
1. You were playing along long term uptrend.
2. Around 1720 is the support zone.
3. You want to trade strong stocks so you want to see it fail around 1730 level rather than around 1720.
hope i am right

If it had reached 1720 i would have bought evrything i could and gone to the park ;-) ... 1730 , 1720 , 1740 are whole numbers divisible by 10 investors , traders , mutal funds who have missed the move the privious day will come to buy it so once the stock aproaches there you should suddenly see big bid coming up , this adds to your thesis that the stock is strong, i dont like fibonacci and othere things its best to be simple... trading as it is is very complicated and hard

 

[Vertigo_1985]

If it had reached 1720 i would have bought evrything i could and gone to the park ;-) ... 1730 , 1720 , 1740 are whole numbers divisible by 10 investors , traders , mutal funds who have missed the move the privious day will come to buy it so once the stock aproaches there you should suddenly see big bid coming up , this adds to your thesis that the stock is strong, i dont like fibonacci and othere things its best to be simple... trading as it is is very complicated and hard

from where did you learn trading?

 

[ryan4ucar]

from where did you learn trading?

Ohh thats a big story man some other day ... basically started full time 2 years back ... but did a lot of learining(loosing actually ) before that for 3 years, basically i survived and surviving the markets by understanding pshycology ... before this i have read every possible material available on day trading , finally decided what clicks for me and sticking with that now

 

[Vertigo_1985]

Hi ryan,
Please give your opinion on below post( like how you expect a day to be after a trend or range day)..

http://niftynirvana.blogspot.in/2012/02/daily-trading-patterns.html

 

[Vertigo_1985]

Reading Technical Analysis Using Multiple Timeframes... highly recommended.

 

[Vertigo_1985]

Today's price action gives clue to tomorrow price action. You should be able to observe, analyze and anticipate to profit from the market.

Below i have posted 3 charts of different stocks on different days showing similarity in price action on 2 consecutive days. If you would have observed it well during 1st day then you could have exploited it on 2nd day. Just a glance shows a lot of similarity, pay closer attention and you can see a lot more. For eg for JP-
1. JP had a gap down and stall and fall on 24, same thing on 25.
2. Days low were made before 1200 hr then it went into consolidation.

Whichever stock you are trading, note down how it moved in the day, important price levels, how it opened, how it closed, how much strength did the strong side showed? how much strength the weak side showed ?
This is all part of your homework, do it well and see yourself succeed.

Please your comments and any examples if you find.

Regards