Price action with Candlestick Analysis(No indicators)

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Vertigo_1985

Well-Known Member
#951
#951
What factors do you think give clue about how second day after a strong trend is most probably going to happen ? like market mood, sector mood or the type of technical event ...
When do you expect a trend to continue next day and when you expect it to come inside yesterdays range?

Regards
 
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ryan4ucar

Well-Known Member
#952
#952
Vertigo_1985 said:
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
Click to expand...

This is all nice work but you are missing an important thing here out of 1500 stocks trading you found 3 stocks repeating themselves ... if i ask you to pick 3 stocks or even 1 which will act the same way tom , its almost impossible because markets dont react the same way everyday ... but that does not mean patterns dont ... you do have similar patterns in the market which repeat ... the most important key in any kind of trading is finding patterns that have the highest probability of occuring ... if you are expecting a certain pattern to play out you have to know what conditions are required for that pattern , once you know conditions you have to know subconditions within those conditions if you see this you do this if you see that you do that ...if you form rules for these conditions you are most likely to succeed ... for example i dont trade breakouts on long traders in this market cause its a nervous panicky market where most breakouts fail , instead i buy pull backs and when stock reach iportant levels , i do play break downs but with less size as breakdowns are violent and pullbacks will be big hece losses can be big , most of my money is made going long strong stocks and shorting stocks when overall market is trending down ... this is what is currently happening in the market and i am simply following it. when it changes i will autmatically adjust so spend more time in archiving a set of patterns under certain market conditions hope that helps .

About you last point its absolutely true , if you know how a stock tradeed the 1st day ... it will help you trade it well the second day even if that day turns out to be an inside day , as you build your trading skills you will be armed with s/r levels where trades can be taken and prices will move cleanly.
 
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ryan4ucar

Well-Known Member
#953
#953
Vertigo_1985 said:
What factors do you think give clue about how second day after a strong trend is most probably going to happen ? like market mood, sector mood or the type of technical event ...
When do you expect a trend to continue next day and when you expect it to come inside yesterdays range?

Regards
Click to expand...
Its not that simple, there are a lot of factors which are almost indescribable in one post ... A plain solution is topic of this thread , price action , normally price action and big picture gives out the whole story , they both go hand in hand big picture gives you a idea about what big investers are likely to do and price action gives you an idea about what is actually happening and what can unfold ... as simple as i say it as you get experience you will add more tools to your tought process .... this no bboks will teach you it only comes from hours of looking at charts and thinking about why they trade that way ... that is what gives you an edge in the market.

Its all theoretical above but make a detailed list of what you know from whatever experience you have and ill help you refine it , if i give the answers it will never be your methods hence youll never be confidant in actual trading
 
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Vertigo_1985

Well-Known Member
#954
#954
several time noticed that 4th test of a trendline often results in trend change or consolidation...today read it in Technical analysis using multiple timeframes too..maybe we can incorporate this in taking profits or initiating counter trades..
Even for triangle consolidation i have often noticed 4th swing to cause breakout from the pattern. What's your observations on this ?
 
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avny

Well-Known Member
#959
#959
very nice thread,but it seems that as HIK stopped posting,it has lost the steam

but this is one of the best trading concept, simple and effective

it can be used in any timeframe,if undrstood correctly

will try to post some charts daily

thanks
 
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