Teach A Man To Fish And.........
- Thread starter Saint
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Thanx Saint, will try to grab whet you teach in your further posts and may be try to clear my mind.
Just one question Saint that has been bothering me. As you have told that we look at larger time chart for perspective and trade shorter term chart. Suppose both weekly and daily is in uptrend and suddenly daily breaks the pivot low. My question is :-
1. Where should we reenter, at the start of a new rally (higher lows and highs on daily bars) or do we wait for pivot high to be taken out again for entry
2. When do we pyramid
Just one question Saint that has been bothering me. As you have told that we look at larger time chart for perspective and trade shorter term chart. Suppose both weekly and daily is in uptrend and suddenly daily breaks the pivot low. My question is :-
1. Where should we reenter, at the start of a new rally (higher lows and highs on daily bars) or do we wait for pivot high to be taken out again for entry
2. When do we pyramid
Hello Saint,
The answer to prabhjeetrana's first question is that we enter at the break of a pivot high in daily. We cannot enter merely at the next rally, since it is not proof enough of the change of daily trend. But a break of a pivot high is.
Now my question:
Pivot highs are broken in two ways.
Case 1: by making a previous higher pivot low.
Case 2: by making a previous double bottom or a lower pivot low.
Therefore, do I enter at the break of a pivot high irrespective of the above two cases?
My argument really is, Case 1 sounds more solid but then again we want to cathc trends. So there is chance that due to addition of such a filter we might lose out on few such trends. As a result we might be in a situation where we'll end up with a comparatively longer streak of losses.
Please comment.
Amit.
The answer to prabhjeetrana's first question is that we enter at the break of a pivot high in daily. We cannot enter merely at the next rally, since it is not proof enough of the change of daily trend. But a break of a pivot high is.
Now my question:
Pivot highs are broken in two ways.
Case 1: by making a previous higher pivot low.
Case 2: by making a previous double bottom or a lower pivot low.
Therefore, do I enter at the break of a pivot high irrespective of the above two cases?
My argument really is, Case 1 sounds more solid but then again we want to cathc trends. So there is chance that due to addition of such a filter we might lose out on few such trends. As a result we might be in a situation where we'll end up with a comparatively longer streak of losses.
Please comment.
Amit.
Dear Prabhjeet,
just look at the photograph of saint. can this man ever get angry??? never ever
Tapaswi.S
just look at the photograph of saint. can this man ever get angry??? never ever
Tapaswi.S
About absence of a pivot high.
Hello Saint,
Am seeing an hourly chart of Nifty, which is in an uptrend. Now entries in 5 min are sought. The chart is attached.
5 min has broken a pivot low and is now in a downtrend. A break of a pivot high is awaited. However, the pivot high in this case is vague.
Do the two red horizontal lines mark pivot highs. If so, they aren't they a little odd and hence allowing a lot of room for subjectivity.
How do you suggest one should tackle this?
Amit
Hello Saint,
Am seeing an hourly chart of Nifty, which is in an uptrend. Now entries in 5 min are sought. The chart is attached.
5 min has broken a pivot low and is now in a downtrend. A break of a pivot high is awaited. However, the pivot high in this case is vague.
Do the two red horizontal lines mark pivot highs. If so, they aren't they a little odd and hence allowing a lot of room for subjectivity.
How do you suggest one should tackle this?
Amit
Last edited:
You must be annoyed by now since I butt-in to answer every question of yours? Please do not be. Nor feel any compulsion to revert back to any of my answers. I do it merely with the hope that if wrong then I will be corrected.
So here I go again
You asked:
"Do we wait for uptrend to turn into downtrend to enter short or look for a start of a decline in downtrend to go short?"
Answer:
In this case we wait for an uptrend to turn into downtrend. However, if you were trading the weekly chart, by referring to the monthly chart then you would to the later. And like you suggested to catch a start of a decline we could enter at the reversal of one-bar.
You may ask "Why the distinction?" Remember Saint said
"WHY? That's the way longer time frames behave.....and this is the way shorter time frames behave."
I have attached a chart with my answers in thin black colored fonts. Please care to take a look and revert.
Amit.
So here I go again
You asked:
"Do we wait for uptrend to turn into downtrend to enter short or look for a start of a decline in downtrend to go short?"
Answer:
In this case we wait for an uptrend to turn into downtrend. However, if you were trading the weekly chart, by referring to the monthly chart then you would to the later. And like you suggested to catch a start of a decline we could enter at the reversal of one-bar.
You may ask "Why the distinction?" Remember Saint said
"WHY? That's the way longer time frames behave.....and this is the way shorter time frames behave."
I have attached a chart with my answers in thin black colored fonts. Please care to take a look and revert.
Amit.
Last edited:
Hi Prabhjeet,
"The answer to prabhjeetrana's first question is that we enter at the break of a pivot high in daily. We cannot enter merely at the next rally, since it is not proof enough of the change of daily trend. But a break of a pivot high is."
Same as said by Amit above to your first question......only above pivot high confirmation on the daily,different story though if you are trading only the weekly charts and not looking at the daily charts(as described in last few posts in previous page).
Where to add?Every time we get a pivot low,and then goes on to break that prev pivot high,add there and raise stop loss to that very pivot low......Once again,same as above,the add entries like the initial one is a break above previous pivot high.
All the best!
Saint
"The answer to prabhjeetrana's first question is that we enter at the break of a pivot high in daily. We cannot enter merely at the next rally, since it is not proof enough of the change of daily trend. But a break of a pivot high is."
Same as said by Amit above to your first question......only above pivot high confirmation on the daily,different story though if you are trading only the weekly charts and not looking at the daily charts(as described in last few posts in previous page).
Where to add?Every time we get a pivot low,and then goes on to break that prev pivot high,add there and raise stop loss to that very pivot low......Once again,same as above,the add entries like the initial one is a break above previous pivot high.
All the best!
Saint
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