Thoughts on Day/Swing Trading Part 2
- Thread starter DanPickUp
- Start date
Hi ST,
Could you please share some insight on when and where to reverse the order. I am not sure whether this has been covered somewhere in the thread. Please share some high level points when your time permits.
Here are couple of points I can think about now. Please correct it if it wrong
1. Going long/short at lower/top level and having SL at high or low of the day. In case of SL trigger I think we can reverse order
2. Consolidation breakout/breakdown
Here is an example. Hope it helps for beginner like me
Aban:
Price consolidated for an hour with in 1.5 rs. So we put sell order just below of consolidation and buy order above consolidation. So now price breaks lower side and buy order now become a SL.
Novice Trader 1:
They look to price move downside which did not happen and when the price nearing the SL, just they will cancel the SL order and they look short every rise to average the price.
Novice Trader 2:
They look to price move downside which did not happen and triggered the SL. Now their mind just think about the loss and they will never look for the other opportunity.
Professional Trader:
They look to price move downside which did not happen. Now they know that it's breakdown failure. They change the SL order quantity to 2X. When it hits SL, short would be covered and buying would be initiated.
Day Ends:
Novice Trader 1 : Due to averaging they lost some huge amount from capital
Novice Trader 2 : they lost 2 rs per share
Professional Trader: 10-2 = 8 rs profits.
As a day trader we should know when and where to stop and reverse the order
Could you please share some insight on when and where to reverse the order. I am not sure whether this has been covered somewhere in the thread. Please share some high level points when your time permits.
Here are couple of points I can think about now. Please correct it if it wrong
1. Going long/short at lower/top level and having SL at high or low of the day. In case of SL trigger I think we can reverse order
2. Consolidation breakout/breakdown
Here is an example. Hope it helps for beginner like me
Aban:
Price consolidated for an hour with in 1.5 rs. So we put sell order just below of consolidation and buy order above consolidation. So now price breaks lower side and buy order now become a SL.
Novice Trader 1:
They look to price move downside which did not happen and when the price nearing the SL, just they will cancel the SL order and they look short every rise to average the price.
Novice Trader 2:
They look to price move downside which did not happen and triggered the SL. Now their mind just think about the loss and they will never look for the other opportunity.
Professional Trader:
They look to price move downside which did not happen. Now they know that it's breakdown failure. They change the SL order quantity to 2X. When it hits SL, short would be covered and buying would be initiated.
Day Ends:
Novice Trader 1 : Due to averaging they lost some huge amount from capital
Novice Trader 2 : they lost 2 rs per share
Professional Trader: 10-2 = 8 rs profits.
As a day trader we should know when and where to stop and reverse the order
Last edited:
Hi ST,
Could you please share some insight on when and where to reverse the order. I am not sure whether this has been covered somewhere in the thread. Please share some high level points when your time permits.
Here are couple of points I can think about now. Please correct it if it wrong
1. Going long/short at lower/top level and having SL at high or low of the day. In case of SL trigger I think we can reverse order
2. Consolidation breakout/breakdown
Here is an example. Hope it helps for beginner like me
Aban:
Price consolidated for an hour with in 1.5 rs. So we put sell order just below of consolidation and buy order above consolidation. So now price breaks lower side and buy order now become a SL.
Novice Trader 1:
They look to price move downside which did not happen and when the price nearing the SL, just they will cancel the SL order and they look short every rise to average the price.
Novice Trader 2:
They look to price move downside which did not happen and triggered the SL. Now their mind just think about the loss and they will never look for the other opportunity.
Professional Trader:
They look to price move downside which did not happen. Now they know that it's breakdown failure. They change the SL order quantity to 2X. When it hits SL, short would be covered and buying would be initiated.
Day Ends:
Novice Trader 1 : Due to averaging they lost some huge amount from capital
Novice Trader 2 : they lost 2 rs per share
Professional Trader: 10-2 = 8 rs profits.
As a day trader we should know when and where to stop and reverse the order
Could you please share some insight on when and where to reverse the order. I am not sure whether this has been covered somewhere in the thread. Please share some high level points when your time permits.
Here are couple of points I can think about now. Please correct it if it wrong
1. Going long/short at lower/top level and having SL at high or low of the day. In case of SL trigger I think we can reverse order
2. Consolidation breakout/breakdown
Here is an example. Hope it helps for beginner like me
Aban:
Price consolidated for an hour with in 1.5 rs. So we put sell order just below of consolidation and buy order above consolidation. So now price breaks lower side and buy order now become a SL.
Novice Trader 1:
They look to price move downside which did not happen and when the price nearing the SL, just they will cancel the SL order and they look short every rise to average the price.
Novice Trader 2:
They look to price move downside which did not happen and triggered the SL. Now their mind just think about the loss and they will never look for the other opportunity.
Professional Trader:
They look to price move downside which did not happen. Now they know that it's breakdown failure. They change the SL order quantity to 2X. When it hits SL, short would be covered and buying would be initiated.
Day Ends:
Novice Trader 1 : Due to averaging they lost some huge amount from capital
Novice Trader 2 : they lost 2 rs per share
Professional Trader: 10-2 = 8 rs profits.
As a day trader we should know when and where to stop and reverse the order
As we all know trading is a game of probabilities. There is nothing definite or certain in trading . As a trader we should be aware and accept that market can do anything. It has no obligation to go as per our analysis or as per our trade direction.
In addition to the three possibilities mentioned above by you , there is a fourth and the best way of handling this breakout failure.
When the sideways range broke on the downside,we took a short trade. The same bar closed within the sideways range showing a failure. The next bar is a green candle....so get out of short positions. Now wait with no position. Either the market will make another attempt to break the low so now we will take a short position below the red failure bar low. But in 70-80 % cases the market will breakout on the upper side. So the moment it breaks out on the upper side, you go long , thereby saving most of the the amount you will loose in the stoploss. Remember that breakout failures set up very good trades in the opposite direction and that is what the market did...
Happy Trading.
Smart_trade
ICICI today Cash.Break Down.
But note that the candle next to B/D candle was Green,giving a doubt whether it was false B/D.
But when the Low of the B/D candle was taken subsequently,there was No stopping.
Quote Smart:
When the sideways range broke on the downside,we took a short trade. The same bar closed within the sideways range showing a failure. The next bar is a green candle....so get out of short positions. Now wait with no position. Either the market will make another attempt to break the low so now we will take a short position below the red failure bar low.
Unquote:
Smart,
Really u have Studied & Analysed the Market in Detail man.
Hats off.
But note that the candle next to B/D candle was Green,giving a doubt whether it was false B/D.
But when the Low of the B/D candle was taken subsequently,there was No stopping.
Quote Smart:
When the sideways range broke on the downside,we took a short trade. The same bar closed within the sideways range showing a failure. The next bar is a green candle....so get out of short positions. Now wait with no position. Either the market will make another attempt to break the low so now we will take a short position below the red failure bar low.
Unquote:
Smart,
Really u have Studied & Analysed the Market in Detail man.
Hats off.
Last edited:
If you look at original post & after ST also confirmed that at least 35 & more points difference should be there.
http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-49.html#post595540
Please correct me if i am wrong.
http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-49.html#post595540
Please correct me if i am wrong.
The trade was never set up today. The maximum the VWAP and the price difference reached was 27-27.5 and that was in 2:25 bar. This pattern works on the desperation and urgency to cover for the trapped traders. So we must have more than 35 and that too near 2:45-2:50 ....then only the traders who are trapped feel the heat. If the difference is 25-27 points and again next few bars dont maintain this difference....there is no desperation to cover the loosing position. As today the bulls were in no panic...and hence they held on and pulled the market up.
Apply this pattern carefully observing all the points mentioned in this thread for maximum success with this pattern.
Smart_trade
Apply this pattern carefully observing all the points mentioned in this thread for maximum success with this pattern.
Smart_trade
Yes T4J ....you are right. Today there was no panic and desparation on part of bulls to liquidate their loosing position. And the difference of over 35 points should be near the end of day ( 2:45-2:55) and the difference maintained so that the loosing side gets desparate to get out of loosing positions at whatever price....and then the pattern works.
Many apply this pattern at any time even at 12:30.......at 12:30 there is enough time left and loosing side still has hopes and they dont panic which is essential element of this pattern.
Smart_trade
Many apply this pattern at any time even at 12:30.......at 12:30 there is enough time left and loosing side still has hopes and they dont panic which is essential element of this pattern.
Smart_trade
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