Hi Saint,
First of all a
big thanks for your pivot trading technique. I have been practicing it since last two three months with my online trading account with a quantity of just 1 share and was reversing my position with 2 shares when I am stopped out - so i was always in trade whether up or down with open position of 1 share. Since I was trying it out with a minuscle quantity it did not matter whether i was wrong or right as i wanted to learn why i am right and why i am wrong.
This system works wonderfully in trending market but gives whiplashes when I am trading shorter time frame . I tried to time my trade with few other indicators and it is working at its best.
My Query :
Set up is -
A stock is in weekly uptrend and I have entered a long trade when it has broken a pivot high on daily time frame.
I have set my stop loss on break of immediate pivot low on daily time frame.
Now -
Once I am in trade at break of pivot high - stock just inches up and retraces back the whole up move back to pivot low and just inches down and my trade stops out - at a deep loss. Some scrips have a range of 30-40 rs between pivot highs and lows and when they are forming expanding traingles - you get stopped out at both the ends. How can you avoid such a trade ?
I tried to follow my trade daily - and since was getting stopped out , i tried putting my stops on smaller time frame so that I can save on my losses - but that didnt help. It did reduce my losses , but logically i was not correct and was not knowing why should i change to shorter time frame.
Also while stock is perfectly exibiting a trend , sometimes the false opening prices use to distort my charts and even indicators and they were giving me false moves. I tried to rectify this by ignoring this price or the movement for first half hour. But than it was not helping always. Does this false opening prices signify something? Is it some kind of a signal that says - the stock should go in that direction and near that price. ( my assumption )
Also sometimes , stock remain in sideways for long time and you get stopped out at the both the points leaving nothing on table.
My understanding
we can avoid this loss only by knowing that the scrip is a avoid / it is making expanding traingles ( but that I will know only after few loosing trades ) / scrip is in sideways ( that will take atleast two loosing trades ) But then how u can know this ? How to know when not to trade ?
Your help will be appreciated as always.
Thanks for everything.
- Regards
