Stocks To Keep A Close Eye On

[SavantGarde]

I know there are many queries on Price Action.....

Ever since it was mentioned with a couple of days of trading... where one was down day... and second one being an up day....suggestion to all the seekers... is first to reflect...

a) Whether there is any difference in watching the Bid & Ask now than previously....

b) Has the confidence of taking a trade whether Long/Short increased...

c) Have you been able get rid of some amount of fear from taking a Trade

d) Has the exit become a little more easier than before....

SavantGarde

 

[swati23]

Thanks I'll try to watch the movements more closely.

Young Lady Swati,

You executed the trade perfectly.... Congratulations..!!!

Professional traders employed by brokers would have been happy to exit with 15-20 paise... I am not exaggerating... Imagine if CIL was traded in futures with a lot size of 500-1000... think about the profit....

You will need to use this spurt to exit... for a while..thereafter lot more things will fall in place... whether the momentary small downside after Spurt is just a rest for even a bigger up move...is all you will be able to discover for yourself in due course....

You are correct in pointing out it was 20-30k mentioned..by me... Please give the recipe for a good memory retention... before 20-30k becomes 120-130k... considering it has already been blown to 80K...by the dreamers

SavantGarde

 

[trader_man]

You are correct in pointing out it was 20-30k mentioned..by me... Please give the recipe for a good memory retention... before 20-30k becomes 120-130k... considering it has already been blown to 80K...by the dreamers

SavantGarde

Yeah I am a dreamer....always will be..... In fact, the success that I have had with other things in life has been cause of that. May I recommend "The I Have a Dream" Speech given by Martin Luther King.

"I have had dreams and I have had nightmares, but I have conquered my nightmares because of my dreams."

Good day everyone and good luck tomorrow!

 

[SavantGarde]

I am so so glad...your feet is firmly grounded on earth.... Guys... here is an example of how to be realistic & pragmatic....and take things a little slow...

Yes I have promised a detailed explanation... will do it as soon as I am able to collate everything and able to express myself coherently....so that I am not mistaken for a mad lunatic.....babbling away on a full moon day....which is normal for me....

Please have some patience while I think about how to go about it...

SavantGarde

Thats what I'm trying to say. Few days back I saw he sold something like 150 SBI lots in the screenshot he gave.(I'll leave the calculations to you) Now if I go running after 80k with my not so great experience, Im sure one wrong trade will wipe out my account.

Again as I said earlier, I dont expect myself to execute those kind of accurate calls....even if he gives me a "how to" book on his trading style. Till the time I don't experience the market movements myself, I'm not going after even 20k.

 

[rsingh2005]

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. 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.

SG sir & other senior Mate,
Would you please explain how to read price action or ask-bid spread, as complete novice , was trying to get some insight by watching few scripts like Ispat, DLF, Alok, in odin.. without success, not able to figure out anything.
Regards
Rajesh

 

[saivenkat]

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 bro, Rahul bro and Rishi bro

Well we have all made a good initiative.. a good start, to emulate the master.

Even me too tried with Pure price action, of Mr SG bro tries to teach us.

I just did it for SBIN today.. nearly three times in a day.. paper trades..
What i did was just followed the Bid ask, sell rate..and the average traded price..

In case of SBIN, bid, ask price spread variation came as close to 20 to 30 paise, i think around 3143.20/3143.75 something like that.. it moved up and down in this area ( price) for quite some time.. nearly on three or four occasions it came close to that price mark, and the (Average Traded Price) ATP at that moment was around 3125.

Also the top five Ask/Sell rates were in the range of one or two rupees.

So i initiated a buy at this juncture ( paper trade) and the price zoomed to 3170.xx.. here i saw the same picture as described above..
and quite sudden.. i could see the variation in Ask/sell bid like 3170/3173.. etc.. then i decided to exit. so paper trade ending in profit..

I dont know whether this is correct or not, but then i have told what i adopted today.. to get it discussed and corrected by the master.

Different story:

Though i adopted the above, and bought 20 shares at 3145..At that time ATP was around 3153 ..yet it started to come down.. Again in the afternoon i bought another 20 at 3097.. here also ATP was loitering around 3123.. using the above method..yet it fell..( So in total 40 shares with real money is not effective)

The reason i make such a long post is that
I) I want SG bro to know what i did
II) Being after market hours, as told by SG bro, longer posts will get longer response after market hours..

Saivenkat

 

[SavantGarde]

Hi Adi,

First you will need to get all the negativity out of your system....read your post again & again... why so much of blaming yourself...

Frankly, the way I think.... is Only competition I have is from the benchmark I set for myself.... there is nobody anywhere in the world who can set a benchmark for me to conquer.... and at the same time I am quite merciless & unforgiving to myself for any errors on my part.....believe you me..nobody can be more critical of me than myself.......When I do make an error... I will constantly think about what was it that I missed...whether there was any telltale signs...that I overlooked... I will keep looking for answer ....till I find it.. but while I am being critical of myself & looking for answers... world doesn't Stop....for me.... and questioning takes place at subconscious level... & at times... I find answer in a few days... sometimes it can take a few years...but Answer is always found....
Once the answer is found... it gets filed along with the answer in a different part of my brain....where solved answers exists....

Please refer below for a post on Price Action... will post it here when I am finished with it....& in the meantime follow whoever you have been following successfully in reducing some of your losses....

Happy & Safer Trading

SavantGarde

Savant Sir,

I am unsuccessful trader. i have recovered very much of my lost money by following someone elses trading calls on this forum. but i learn nothing. becoz may be i am average. i don have guts to trade on own decision. does it ocur to u tht we small trader not as blessed and talended like u greats.

wen u talk abt price action it just flies over head. wud request u to post a detail post for this. i sure many want this. u touched upon this point very little. if u write more and explain with example we learn more.

help plz.

adi

 

[SavantGarde]

Hi SaiVenkat,

Narrow spread.... works on both sides...UP & DOWN... one can detect it by Lower Bid & Ask.... it means...price is going to drop... I don't look at 5 bid & 5 ask, only what is current on the screen.... Average Traded Price... is just glanced at for The range... there is NO active monitoring of ATP

SavantGarde

Trader_man bro, Rahul bro and Rishi bro

Well we have all made a good initiative.. a good start, to emulate the master.

Even me too tried with Pure price action, of Mr SG bro tries to teach us.

I just did it for SBIN today.. nearly three times in a day.. paper trades..
What i did was just followed the Bid ask, sell rate..and the average traded price..

In case of SBIN, bid, ask price spread variation came as close to 20 to 30 paise, i think around 3143.20/3143.75 something like that.. it moved up and down in this area ( price) for quite some time.. nearly on three or four occasions it came close to that price mark, and the (Average Traded Price) ATP at that moment was around 3125.

Also the top five Ask/Sell rates were in the range of one or two rupees.

So i initiated a buy at this juncture ( paper trade) and the price zoomed to 3170.xx.. here i saw the same picture as described above..
and quite sudden.. i could see the variation in Ask/sell bid like 3170/3173.. etc.. then i decided to exit. so paper trade ending in profit..

I dont know whether this is correct or not, but then i have told what i adopted today.. to get it discussed and corrected by the master.

Different story:

Though i adopted the above, and bought 20 shares at 3145..At that time ATP was around 3153 ..yet it started to come down.. Again in the afternoon i bought another 20 at 3097.. here also ATP was loitering around 3123.. using the above method..yet it fell..( So in total 40 shares with real money is not effective)

The reason i make such a long post is that
I) I want SG bro to know what i did
II) Being after market hours, as told by SG bro, longer posts will get longer response after market hours..

Saivenkat

 

[SavantGarde]

Hi Adi.

You have framed the query wrongly and gives very different interpretation of what I had mentioned in my Post....

Price Action as posted by Dan is what I was talking about....
If people are following Price Action based on Charts & Indicators... they are the ones who were called 'Idiots' in my post...because that is not Price Action Trade...

Just because there is something Printed based on Charts & Indicators & is called Price Action... does not mean the Author is correct....Titling it as Price Action.

SavantGarde

raunak sir,

do chart work? savant sir has written in his thread those follow chart r fool n idiot. he trade only on price action n make money. i request him to teach us. hope he do. i am confused as he say chart dont work.

ur opinion?

Adi

 

[saivenkat]

Thank you Sir for clarification.

The error i did was:

After taking into consideration of Narrow spread, .. i used ATP for the reasons of predicting the movement of the stock ( up or down)
For eg: If ATP is at 3140 and bid/ask is at 3125.. i thought their is possibility of up move and bought the stock. Is this the error sir?

2) Looked to 5bid & 5ask.

Now the further query sir;

Let me put the here bid / ask that which comes successively on the current screen.

Buy Sell

3140.30 3142.75
3140.70 3143.75
3141.95 3143.30
3142.10 3142.50
3142.25 3142.95
3143.00 3143.10


If one comes across like the one i highlighted in red say for a one or two minutes.. that means is it a buy signal.. here what i conclude is that the price increases..and the narrow spread occurs..

At this juncture, how to use AVerage Traded price..?

Sorry for troubling you again.. but then its my habit sir.. when it comes to learning.. i will start pestering often and often till i get it..

Raunak bro, Veluri bro, Kksekar bro.. and few friends have experienced this from me.. ( hehe the trouble..)

Saivenkat