Thoughts on Day/Swing Trading Part 2

[rajesh.singh]

st and others

i trade using orb such trades effective in gap ups!! any comments

My take..Opening range offers great trade in first hour, either through pullback or reversal from previous day pattern, mostly if opening range is small compare to average daily range, challenge comes in todays kind of days. Where we have big gap up, followed by creepy moves, very hard to trade with stop or pivot entries , though trend in place but mostly in tight channel & most of the stop loss get hits, unless we keep wide stops if big gap followed by bigger range, then we can have good trades in either direction.

 

[trade4joisar]

Seniors,

I just want to know whether this is what happens depend on options data ?

This is HUL options, and now intersects (yellow block) is placed at 520 & 540, what that means?
Does it says that now people want close for this month around this price ?

OR it says more than that ?

 

[balasoft80]

Hello ST,
I am trying to study some of the old charts to understand the price action. I have few clarifications on the below chart and could you please clarify when your time permits?

1. The highlighted bar is breakout bar and then small red bar. As per you I have to keep SL just below of the breakout. But after the breakout, next 4 bars couldn't able to break the high of the breakout bar. How to react at this point of time? How do I workout here?

2. Did you see any entry point for long after deep fall? I couldn't see any reason for long. How do you take long here and reason? Please let me know your views

Also, please let me know if these type questions should require new or other post

 

[gunsho]

Seniors,

I just want to know whether this is what happens depend on options data ?

This is HUL options, and now intersects (yellow block) is placed at 520 & 540, what that means?
Does it says that now people want close for this month around this price ?

OR it says more than that ?

Yellow blocks are ITM options. The intersection is at ATM strike price. It doesn't say where market will close at expiry. But you can find the likely hood range by checking the range of strike prices which have more Open Interest.

http://www.traderji.com/options/66083-put-call-options.html => Columbus use to update this thread for Nifty on daily basis. He seems to have taken a break from September. Still one can get an idea from his thread. This data will give us a expected expiry range!

 

[balasoft80]

Hi ST,
Sorry to disturb you. But I have no other clue. Could you please guide me to understand the today price action? This is not urgent and you can throw some light whenever you feel free.

Nifty opened nearly neutral and broken the yesterday high. However it failed to close above that level and Hence I was expecting the downmove and it didn't happen. Now it took higher pivot low and this time I thought nifty will go up. Again it broken the trendline to downside . It happened in the second time also. However then it become breakout failure and moved down 20 pts from there. Now it is going up again

 

[amrutkumar]

Dear ST,

A small question with regards to Stock selection for Day trading. I find that Breakout stocks give good profits and when I see the 30 Mins chart for the same, it is considerably easy to visualize and understand and Trade. But I find difficulty in Identifying the stocks. I keep a list of Stocks, selected Previous day, with the method you had mentioned earlier in the thread, i.e. 30 mins is Trending, 21 sma is sloping & Stock not trading in a Range.

But sometimes when I see NSE Top Gainers & Losers, I can find lots of stocks which have given a Breakout, for example, today Polaris, Adanient, Ktkbank etc, but the Identification is too late, this way, as the stocks have moved a lot and difficult to Trade.

My question is, is there any way to identify these Stocks, the previous day itself. How do we find out such stocks the Previous day?

I hope i have not confused and sorry for the lengthy question.
Kindly help me in this regard.

 

[Smart_trade]

Hi ST,
Sorry to disturb you. But I have no other clue. Could you please guide me to understand the today price action? This is not urgent and you can throw some light whenever you feel free.

Nifty opened nearly neutral and broken the yesterday high. However it failed to close above that level and Hence I was expecting the downmove and it didn't happen. Now it took higher pivot low and this time I thought nifty will go up. Again it broken the trendline to downside . It happened in the second time also. However then it become breakout failure and moved down 20 pts from there. Now it is going up again

Continuous failures of the breakouts was indicating that the market had no strength to hold above the breakout level. These days the market range has contracted and we get 15-17 points in the move if we catch it correctly. But if someone had traded the failures and went short, he should have made money.

Smart_trade

 

[Smart_trade]

Dear ST,

A small question with regards to Stock selection for Day trading. I find that Breakout stocks give good profits and when I see the 30 Mins chart for the same, it is considerably easy to visualize and understand and Trade. But I find difficulty in Identifying the stocks. I keep a list of Stocks, selected Previous day, with the method you had mentioned earlier in the thread, i.e. 30 mins is Trending, 21 sma is sloping & Stock not trading in a Range.

But sometimes when I see NSE Top Gainers & Losers, I can find lots of stocks which have given a Breakout, for example, today Polaris, Adanient, Ktkbank etc, but the Identification is too late, this way, as the stocks have moved a lot and difficult to Trade.

My question is, is there any way to identify these Stocks, the previous day itself. How do we find out such stocks the Previous day?

I hope i have not confused and sorry for the lengthy question.
Kindly help me in this regard.

You should identify stocks which are in a trend ( either uptrend or downtrend ) and have paused for a while and undergoing sideways movement in tight consolidation or a small pullback in the form of a flag. These are the likely candidates for further breakouts and if they are on your watchlist, you will know when they breakout from the range.

Smart_trade

 

[murthyavr]

Dear ST,

A small question with regards to Stock selection for Day trading. I find that Breakout stocks give good profits and when I see the 30 Mins chart for the same, it is considerably easy to visualize and understand and Trade. But I find difficulty in Identifying the stocks. I keep a list of Stocks, selected Previous day, with the method you had mentioned earlier in the thread, i.e. 30 mins is Trending, 21 sma is sloping & Stock not trading in a Range.

But sometimes when I see NSE Top Gainers & Losers, I can find lots of stocks which have given a Breakout, for example, today Polaris, Adanient, Ktkbank etc, but the Identification is too late, this way, as the stocks have moved a lot and difficult to Trade.

My question is, is there any way to identify these Stocks, the previous day itself. How do we find out such stocks the Previous day?

I hope i have not confused and sorry for the lengthy question.
Kindly help me in this regard.

One suggestion I can give with my limited knowledge is - use bollinger bands
in an AFL to find out the stocks which are moving in a narrow range.

After getting a list of such stocks, see the individual charts if any prior trend
was there.

There could be better methods, but I could just think of this at the moment!

 

[guruvenkatesh2007]

dear smartTrade sir,

can you pls tell about your trading method:-

Daily how many times your trade niftyfut.. or you trading in stocks future ??

pls tell about your stoploss for every trade.??

can u pls tell.

and also pls visit the below traderji url link and give comments sir

http://www.traderji.com/day-trading/73866-my-daytrading-last-month-august-pls-comments.html

thanks
take care