Stocks To Keep A Close Eye On

[alroyraj]

Short 1 Lot Dabur @ 100
Long 1 Lot Sail @ 184

Chairman Saheb ne gaaloo khave padsey.

Hope you know what you are doing...I mean you know Dabur...

 

[trader_man]

When Mr SG makes those calls, he gives targets of more than a few rupees. I would assume that many of these calls would be Price Action related. This shows that price action can give a healthy return....I think Mr SG said before, that you can make 80k with a 2L ledger.

Secondly, I read your earlier post and also looked for the speed of the move. But, still had no success. It definitely makes sense to me but there are also other things that need to happen.

Lastly, the index was up and down whole day and so this could be one of the reasons why Price Action trading didn't work out today.

Repost of mine in the morning:
My observations on price action (SG's type-pure tape no charts) is this.I think the narrowing of the ask -bid spread depends on the speed of the price action. When the price movement slows typically there is a reversal.This is typically accompanied by a wide spread but not always. Just experienced this in Vijaya bank dec Fut now at 106.45. Spread narrowed,speed slowed down and bang kinda reversed saved by the skin.
If the speed is fast and in an uptrend and the spread narrows then time to buy at market for the expected up move.

Additionally:
SG uses this for scalping for a few points. He stresses on nimbleness for this to work for us. It is quite challenging.
Another point is that SG watches 4-5 shares no more than this.
The more liquid the stock less is the spread. If the spread already is often 5 paise then we obviously have to play for a larger move.
I think it depends when the narrowing of the spread happens,in an uptrend it occurs very fast,so depends on the terminal you have whether the order gets executed as soon as you shoot it while it appears in the order book.
A lot can be inferred by the candlesticks. If the candlesticks line up and the price movement slows then spread narrow indicated weakness. The charts are say in a position where the price is unable to retrace.

All said it takes a lot to fire an order based on this ,since one needs to be equally quick in exit.

 

[Rishi001]

Tried doing Price Action trading with very small amounts to test but had no success.

The problem is that when the Bid Ask spread narrows to 5 paise, the price does increase by a few rupees but then it comes down again so you never know how far it will go. We can tell that price will jump but the quantum is not known unless you are looking to scalp a few rupees. Even that is difficult since price jumps and then comes back quickly.

Second problem is that for many stocks, the Bid Ask spread is already 5 paise so how do you tell?

Third problem is the Index so if the spread has narrowed but suddenly the Index starts going down, then that has a negative effect on the stock.

To me, there are a sequence of events that need to happen in addition to the narrowing of Bid Ask spread to 30-5 paise to effectively trade Price Action. Perhaps, when the spread has narrowed, it should stay there for a few minutes. And/or the buy quantity should be significantly larger than sell quantity. And/Or the stock should test a certain price but never break it....or it should pivot around a certain price....so many things.... I tried everything...nothing worked....and very exhausting.....

What those sequence of events are is anybody's guess or if Mr SG would be so kind to elaborate on this....

Thanks TM,

I was also trying to analyae bid, ask, spread to determine the direction price would take. While it worked sometimes in high value scripts like HH where the normal sperad it 0.75 to 1 rupee, it did not work in IFCI where the normal spread is 5 to 10 paise. One more thing SG sir said was that he tracks average trade price. IMO if the average price is increasing the share has a higher chance of moving up as compared to moving down, this needs to be tracked with an eye on the index, they both should move in the same direction. The problem is i dont know where to get the information on average traded price during the day........lets wait for SG sir and seek his opinion.

 

[trader_man]

Another point I forgot to mention which is most important is this......

STOCK SELECTION

I mean which scripts should we use to trade Price Action? What should we look for? Mr SG must be having a certain criteria...

 

[Rishi001]

I agree, there seems to be different set of rules for low value scripts where the spread is 5 paise and different rules for high value where spread is high.

SG has given calls on both types of scripts .....so I am still not sure how the this works....back to square one

Another point which I forgot to mention which is most important is this......

STOCK SELECTION

I mean which scripts should we use to trade Price Action? What should we look for? Mr SG must be having a certain criteria...

 

[swati23]

What I experienced is prior to the spurt, the price starts moving up slowly with the bid spread remaining at 5 paise. Today, in Coal India the price was moving in a range while the bid spread was varying between 5 to 10 paise. The price was stuck between 323 to 324....then after 10-15 minutes the price started moving from 323 to 323.5. At the same time, both the bid and ask prices as well as the bid quantity values were gradually increasing at every level. I placed an order at 323.75 and within the next 15 minutes or so it reached 325.8. I remembered SG's advice to exit right after spurt and so I exited at 325.5. To be honest, it all happens very fast....I had to scramble to exit my position in the fear of the price coming down.

Tried doing Price Action trading with very small amounts to test but had no success.

The problem is that when the Bid Ask spread narrows to 5 paise, the price does increase by a few rupees but then it comes down again so you never know how far it will go. We can tell that price will jump but the quantum is not known unless you are looking to scalp a few rupees. Even that is difficult since price jumps and then comes back quickly.

Second problem is that for many stocks, the Bid Ask spread is already 5 paise so how do you tell?

Third problem is the Index so if the spread has narrowed but suddenly the Index starts going down, then that has a negative effect on the stock.

To me, there are a sequence of events with regards to Bid Ask that need to happen in addition to the narrowing of Bid Ask spread to 30-5 paise to effectively trade Price Action. Perhaps, when the spread has narrowed, it should stay there for a few minutes. And/or the buy quantity should be significantly larger than sell quantity. And/Or the stock should test a certain price but never break it....or it should pivot around a certain price....so many things.... I tried everything...nothing worked....and very exhausting.....

What those sequence of events are is anybody's guess or if Mr SG would be so kind to elaborate on this....

 

[alroyraj]

Short 1 Lot Dabur @ 100
Long 1 Lot Sail @ 184

Chairman Saheb ne gaaloo khave padsey.

When Mr SG makes those calls, he gives targets of more than a few rupees. I would assume that many of these calls would be Price Action related. This shows that price action can give a healthy return....I think Mr SG said before, that you can make 80k with a 2L ledger.

Secondly, I read your earlier post and also looked for the speed of the move. But, still had no success. It definitely makes sense to me but there are also other things that need to happen.

Lastly, the index was up and down whole day and so this could be one of the reasons why Price Action trading didn't work out today.

Agreed SG gives good entry points so much so that at the end of the day, we make reasonable profit.
Todays Index movement was unexpected. Similar to the index many futures scripts declined from morning and then recovered some even taking out the days high, a bit hard to trade these.
SG said something about it testing our temperament. Still identifying targets he has to clarify.

 

[anayash]

Thanks TM,

I was also trying to analyae bid, ask, spread to determine the direction price would take. While it worked sometimes in high value scripts like HH where the normal sperad it 0.75 to 1 rupee, it did not work in IFCI where the normal spread is 5 to 10 paise. One more thing SG sir said was that he tracks average trade price. IMO if the average price is increasing the share has a higher chance of moving up as compared to moving down, this needs to be tracked with an eye on the index, they both should move in the same direction. The problem is i dont know where to get the information on average traded price during the day........lets wait for SG sir and seek his opinion.

ATP is available in the quotes on the NSE website!

 

[trader_man]

But Swati, here is the point I am confused about:

Mr SG gives targets that fetch return in excess of 30-40 rupees. Many of these are Price Action related. So, exiting right after the spurt doesn't make sense to me since that would only mean a few rupees profit. That is very difficult for retail traders to quickly execute and also make money...and certainly it is not possible to make 80K with 2L ledger doing that..

What I experienced is prior to the spurt, the price starts moving up slowly with the bid spread remaining at 5 paise. Today, in Coal India the price was moving in a range while the bid spread was varying between 5 to 10 paise. The price was stuck between 323 to 324....then after 10-15 minutes the price started moving from 323 to 323.5. At the same time, both the bid and ask prices as well as the bid quantity values were gradually increasing at every level. I placed an order at 323.75 and within the next 15 minutes or so it reached 325.8. I remembered SG's advice to exit right after spurt and so I exited at 325.5. To be honest, it all happens very fast....I had to scramble to exit my position in the fear of the price coming down.

 

[Rishi001]

Swati,

Did the price again came down once you exited or kept going up?

What I experienced is prior to the spurt, the price starts moving up slowly with the bid spread remaining at 5 paise. Today, in Coal India the price was moving in a range while the bid spread was varying between 5 to 10 paise. The price was stuck between 323 to 324....then after 10-15 minutes the price started moving from 323 to 323.5. At the same time, both the bid and ask prices as well as the bid quantity values were gradually increasing at every level. I placed an order at 323.75 and within the next 15 minutes or so it reached 325.8. I remembered SG's advice to exit right after spurt and so I exited at 325.5. To be honest, it all happens very fast....I had to scramble to exit my position in the fear of the price coming down.