Set-Ups disscused & practised @ Nifty Futures Trading Thread.

[rkkarnani]

Vikram,....
appreciate your help buddy.
Will test it tonight.Also there is a debate among frnds back testing or experiments by live trading with small amount ( not even paper trade ) your views ? or in this case everybody's views appreciated

Hi Alex, My approach had been for any new system :
Back test it with Rules of trading written down. I consider this writing down the rules very important. Back test it for an Year or so!!! If satisfied with the results......
Trade it with small quantity and gradually graduate to higher quantities.
Be warned : we tend to take different actions while analysing and facing the same situation while trading live!!!
A small difference also crops up when we trade small quantity and bigger quantities!!!
We need to be as disciplined as possible!!! More so when trading a system!!!

 

[orderflow13]

Karnani sir,
Thanks for sharing your views. also request to others plz share there views.
As Asish da use to say some times few words click an idea and my addition is some times all concept doesnt click.Back testing is one of them especially if its system based, not indicator based.
Karnani sir said it rightly the amount you use for trade can be a deciding factor.Taking yesterdays example, just thinking of your 10 lks on stake and you r new to day trade, made me confuse and i missed a four bar rule and end of booking losses of 4000/ . As i found my intention is not making money but saving it ( on my 10 lk capital for day trade i have very tight 0.75% max allowed risk ).And if my intention is of not making money then i have to rethink and readjust my psyche.
Same chart same day but you are back testing it.No confusion this day will also get listed in ' great profit' section !! and special note and 'v' moves also it works!!
As saint said removing I from you is important and am not sure any back testing method devised for it.

 

[VJAY]

Hai Sunil,
In your post no:182 i think some mistake/may be i am wrong.please clarify..after bar 4 complete then our SAR is 3499(3492+7).then bar 5 goes new low we should move SAR to high+room of bar3.
Regards
VJAY

 

[pkamalesh]

INSIDE-BAR IN 60 MINS - BREAKOUT TRADING



recent examples of inside bars in 60 min charts...

Date - Hour Bar
11/9 - 13:00
12/9 - 11:00
15/9 - 12:00
16/9 - 13:00
17/9 - 11:00

all these bars were "inside bars" ie their High and Low (let's call them H1 and L1) were within the High & Low of the preceding bar(let's call them H2 & L2)...

Ideally & theoretically, when an inside bar breaks, for eg, on the upside, then above H1, H2 is generally the first target.. similiarly, if breaks down below L1, then L2 should come up...

Inside-bars works well on bigger Time Frames (TF).. they are actually meant for EOD (end of day) charts... i thought of bringing them into our intraday trading by using the 60 min chart as perspective..

(there's also the possibility of bringing down the TF to 30 min... but below that TF is really not advisable, as there are chances of whipsaws & lesser H2s or L2s...)

PLEASE NOTE THE DECISION TO TRADE ON SUCH BREAKOUT DEPENDS ON FOREMOST ON THE DIFFERENCE BETWEEN H1 & H2 (in case of break on upside), and ON THE DIFFERENCE BETWEEN L1 & L2 (in case of break on downside)...
not a norm, but less than 10 points difference is not worth it... but please note, IT DOES NOT MEAN THAT BREAKOUT WILL HALT AT H2/L2...
IT CAN ALSO GO BEYOND THOSE LEVELS (depends on the market condition & RSR status of H2/L2)

inside bars ideally target H2 / L2 (as the case maybe).. beyond that, one has to look at left side of last 1/3/5 intraday charts for further targets ie supports & resistance...

Great explaination sunil and the diagram is so logical an proves the inside bar phenomenon...excellent work..but i have a doubt...all the inside bars have broken only previous high..there is no bar in the chart that u posted that has broken a previous low...can you eloborate or put up another example chart showing an inside bar which actually breaks the previous low....

thanks

kammy

 

[uasish]

There is one very important aspect may be we all now but feel needs some reiteration.

A High or Low of EoD is an extreme price point for that day,until we see the Intraday chart we cant say looking at the EoD that after Open whether the High came first or Low came first,now if we find which one came first then that day's Mkt information is more exhaustive than by looking at EoD only.
Similarly a High or Low of EoD is SAME in ALL time frame of Intraday,in 1 min to 90 min those Figs are highest High & lowest Low,so a Price point which says THUS FAR & NO FURTHER in ALL time frame becomes very imp. for next day.
With same analogy think of a Flow of 60 min in comparision to 30 min & 15 min.Greater the time frame more solid is the Price point.
Now enters the Range factor ,a 60 mins Range (High to Low) is normally more than 30 or 15 min.This Range is important for both the Risk & Reward,i may feel uncomfortable to put a Stop further than 30 points,but a Hrly Pivot's Low which may be the earlier 3rd bar's Low plus wiggling space is always greater than 30 points.
This PROBLEM is initiating us to Lower the time frame & by doing that we are also compromising the Solid Pivotal Price Ponits of 60 mins.
Think how to balance that.

 

[jatinsoni]

trading patterns gives gr8 entries and exit opportunities

 

[orderflow13]

trading patterns gives gr8 entries and exit opportunities

first time i am seeing some one using same set up as i use
plz do post in between and exchange the thoughts.
On hourly adx is rising so we still in a strong down trend, but 5 min and 15 min chart adx is falling down, suggesting a brief consolidation in coming hours ?

 

[chheda]

INSIDE-BAR IN 60 MINS - BREAKOUT TRADING



recent examples of inside bars in 60 min charts...

Date - Hour Bar
11/9 - 13:00
12/9 - 11:00
15/9 - 12:00
16/9 - 13:00
17/9 - 11:00

all these bars were "inside bars" ie their High and Low (let's call them H1 and L1) were within the High & Low of the preceding bar(let's call them H2 & L2)...

Ideally & theoretically, when an inside bar breaks, for eg, on the upside, then above H1, H2 is generally the first target.. similiarly, if breaks down below L1, then L2 should come up...

Inside-bars works well on bigger Time Frames (TF).. they are actually meant for EOD (end of day) charts... i thought of bringing them into our intraday trading by using the 60 min chart as perspective..

(there's also the possibility of bringing down the TF to 30 min... but below that TF is really not advisable, as there are chances of whipsaws & lesser H2s or L2s...)

PLEASE NOTE THE DECISION TO TRADE ON SUCH BREAKOUT DEPENDS ON FOREMOST ON THE DIFFERENCE BETWEEN H1 & H2 (in case of break on upside), and ON THE DIFFERENCE BETWEEN L1 & L2 (in case of break on downside)...
not a norm, but less than 10 points difference is not worth it... but please note, IT DOES NOT MEAN THAT BREAKOUT WILL HALT AT H2/L2...
IT CAN ALSO GO BEYOND THOSE LEVELS (depends on the market condition & RSR status of H2/L2)

inside bars ideally target H2 / L2 (as the case maybe).. beyond that, one has to look at left side of last 1/3/5 intraday charts for further targets ie supports & resistance...

Also one more good setup using inside bars is failure of inside bar known as Hikkake pattern
In your posted chart last inside bar on 17Th Sept 11:00 Hour bar is not perfect setup of Hikkake pattern but it can be used as Hikkake pattern and we can sell short below Low of 11:00 Hour Bar with stop loss above 10:00 Hour bar High

Harish

 

[orderflow13]

Originally posted by Aw10 in sam's companion guide of 60 min flow ,
Sam, Giving you idea about how I add to my postion on retracement. Keep in mind, that it is not what "60min flow --" strategy suggests for add in. Mentioning it here so that readers get some idea..

I use fibonacci retracement level and confirmation of break of pivot high at lower time frame. Wave length is taken from previous 60m Pivot Low to Previous 60m High.
Rules:-
1) Has price retraced to 38%, 50% or 62% level ?
2) If yes, then go down to lower timeframe chart (say 10 min).. and look for pivot high break on 10m chart.
Apply the methodlogy of "60min flow - " on 10m chart to find the break of Pivot High.
3) Enter with buy stop above the break of 10m PH. Postions size is discussed below..
4)Stoploss, at the low of 10m Pivot low for new position. For prev position stop is still at 60m PL.
5) Scale in another 2NF again when it breaks 60m Pivot.

Remember - number of contract, risk on position are upto individuals trading plan.
Strength of trend can be judged by % retracement that are given.
- If 38% retracement, then very high probability that we will have new high, so I can scale in with 4NF. One can also decide to still go ahead with 2NF add here.
- If 50% retracement, then equally chance of getting new high or making double top, so I can scale in with 2NF. I do add another 2F on break of 60m PH
- If 62% retracement, then quite likely that we will have lower high so I can scale in with 2NF
- If >62% retracement, then probably we are seeing the reversal. so avoid add in


Advantage - this method gives early entry, at comparitively small risk.
It helps in better risk reward as trend gets older. At letter stage of trend, difference between PH to next PH starts reducing so it is required to Add in with certain rules and low risk.

Happy Trend Trading.

 

[jatinsoni]

THE 50% RETRACEMENT THEORY IN NIFTY

There are many evidence in which we can see nifty tries to change its direction from 50% Fibonacci no.