Teach A Man To Fish And.........

[Saint]

i totally disagree with you. i am a learner and find value in all worthwhile writing, which yours is. i am not half as knowledgeable as a few others claim to be. i try to collect and assimilate as much as possible. i have not come across lucid examples like 5 fingers for uptrend/downtrend anywhere else. so carry on with your good stuff.

Thank you for your kind words,as always,most sincerely appreciated...

Saint

 

[Saint]

Saint,great 2 have you back.Go on with what you want to share.There are many of us who are happy.

I still remember ,back then,when this thread was started where we all wanted this thread to remain pure.Even questions were asked in another thread so that this thread could be kept away from nonsense.

Please ,Raja,start a new thread and carry on.Please keep the sanctity of this thread alive.

Phoenix

Hmmm.........probably these discussions can be carried on elsewhere and we can focus on the job at hand.Thanks Phoenix!

Saint

 

[Saint]

Saint,
I know atleast 1 member who was really intruiging (about Nifty in particular) that as per Saint's teaching , when at what Pivot ,the Entry was prudent.He is happy now.
Asish

Glad to hear that,my friend.

Saint

ps:am a bit uncomfortable with the word "saint's teaching" though......

 

[Saint]

Dear Saint,
Very nice explanation.
Can you post similar example for getting out for position traders. I feel exit is very difficult task and as I have read from this forum and books traders fail mostly not because of bad entry, but because of early or very late exit. That will be useful for many beginners like me.

Hi LV,

Thanks for the kind words....

Shall post something shortly on exits,need a cup of coffee for now!!

Saint

 

[jdm]

hi Saint,
nothing much to say expext for a big thanks.

cheers,
jdm.

 

[Saint]

LV,

Various ways of getting out of something,finally right and wrong and what is best is as per your comfort levels.You could use an indicator for an entry and an exit.........maybe a combination of indicators all woven into a system........well,there also is the good ol' way,the very boring simple way,using only price and pivots to dictate an entry and an exit.

As you go along,you will,I am sure,find whatever suits your comfort levels......but for now,let us just have a look at things the simple way.

We once again have the NIFTY,we once again have the daily and weekly charts.Have a look at the attached chart below.

That green arrow is our Entry Point........why there?Once again,we have a downtrend on the weekly charts ,remaining so till June 2006.Then we have a rally,and then a decline.....but instead of the decline taking price to new lows,what do we have here?We have a bearish bar on the weekly charts immediately negated by a Bullish bar............now that's a show of force,a sign of strength,and therefore our point of Entry.We enter therefore above 3168.

Now have a look at the daily chart.......What do we have here?We have a higher pivot low,then to new highs,and then an even higher pivot low,and then a newer pivot high......so on so forth.We have 10 pivots of higher pivot lows and highs.Which means,once a newer high is made,we bring up our stops to the previous pivot low,and this we do again and again till we are stopped.Do we have a target?No.........We let the trends and price dictate terms instead of our mind.We merely keep raising stops till we are out.We remove ourselves from the decision making and let the pivots do it for us.

Now have a look at pivot low 10.........instead of making a new high,price now reverses and breaks below the pivot low 10 at 3911.......That is our Exit point,clear and simple.We do not hope,we do not panic,we remove ourselves from this fiasco of fear and greed.We bought when there was fear and disbelief in the markets.We sold when greed had reached a peak,and disbelief that a fall could happen reigned supreme........Our job as traders :We Buy Fear,and Sell Greed.We did not catch the very bottom,nor did we catch the absolute top,but we plucked the meat out of the move,......and we are happy with it,as we look to the next trade,to do it all over again!

Happy Trading!
All the best!
Saint

 

[Dhanya]

Thanks Saint!!!

Dhanya

 

[lvgandhi]

LV,

Various ways of getting out of something,finally right and wrong and what is best is as per your comfort levels.You could use an indicator for an entry and an exit.........maybe a combination of indicators all woven into a system........well,there also is the good ol' way,the very boring simple way,using only price and pivots to dictate an entry and an exit.

As you go along,you will,I am sure,find whatever suits your comfort levels......but for now,let us just have a look at things the simple way.

We once again have the NIFTY,we once again have the daily and weekly charts.Have a look at the attached chart below.

That green arrow is our Entry Point........why there?Once again,we have a downtrend on the weekly charts ,remaining so till June 2006.Then we have a rally,and then a decline.....but instead of the decline taking price to new lows,what do we have here?We have a bearish bar on the weekly charts immediately negated by a Bullish bar............now that's a show of force,a sign of strength,and therefore our point of Entry.We enter therefore above 3168.

Now have a look at the daily chart.......What do we have here?We have a higher pivot low,then to new highs,and then an even higher pivot low,and then a newer pivot high......so on so forth.We have 10 pivots of higher pivot lows and highs.Which means,once a newer high is made,we bring up our stops to the previous pivot low,and this we do again and again till we are stopped.Do we have a target?No.........We let the trends and price dictate terms instead of our mind.We merely keep raising stops till we are out.We remove ourselves from the decision making and let the pivots do it for us.

Now have a look at pivot low 10.........instead of making a new high,price now reverses and breaks below the pivot low 10 at 3911.......That is our Exit point,clear and simple.We do not hope,we do not panic,we remove ourselves from this fiasco of fear and greed.We bought when there was fear and disbelief in the markets.We sold when greed had reached a peak,and disbelief that a fall could happen reigned supreme........Our job as traders :We Buy Fear,and Sell Greed.We did not catch the very bottom,nor did we catch the absolute top,but we plucked the meat out of the move,......and we are happy with it,as we look to the next trade,to do it all over again!

Happy Trading!
All the best!
Saint

Thanks for the explanation even after midnight. However I have one more question. On 11th dec 2006, previous pivot low was broken. Either here we sell all on 12 th dec. or put SL on 11th. To put a stop loss we have to have a trigger point and stoploss point if we are not monitoring continuously. But some times after triggering, price goes so fast down, it crosses sl. Hence SL order is not executed. Is there any way to decide trigger to get stop loss executed?

 

[karthikmarar]

Saint

My friend, It is such a pleasure to see you back in full momentum. It has always been a pleasure to read your posts. When everybody is talking about datamining, NN and other high sounding words which I found difficult to comprehend, you keep it so simple and lucid.

And again an excellant post. Like you always say...keep em coming..

Warm regards

Karthik

 

[Saint]

Thanks for the explanation even after midnight. However I have one more question. On 11th dec 2006, previous pivot low was broken. Either here we sell all on 12 th dec. or put SL on 11th. To put a stop loss we have to have a trigger point and stoploss point if we are not monitoring continuously. But some times after triggering, price goes so fast down, it crosses sl. Hence SL order is not executed. Is there any way to decide trigger to get stop loss executed?

Hi LV,

We have that last pivot low(no 10) on the 28th Nov 2006.....once it breaks to new highs,raise the stop loss to 3911 which is the pivot low made on the 28th Nov......and then we have the move down on the 11th Dec.Our stop is at 3911,that bar down takes you out of the trade.In short,you are out on the 11th Dec.Do not wait for the low and wait for the next day,etc...

The reason that you are in this trade is no more there........your higher pivot lows and highs just got cracked.You are out on 3911.

There are times when the market would take out 3911,and dump to 3860 and then close above 3960..........got faked out of the trade.But better to take the stop there and then,and get out!If faked out,look to reenter,but DO NOT Hold it past 3911 and look to see how the bar closes.

You are therefore basically out on the 11th Dec at 3911.

All the best!
Saint