Thoughts on Day/Swing Trading Part 2

[Smart_trade]

Yesterday was a day which had all classic signs of a strong trend day.These characteristics are as under :

1) The market starts on a strong note and immediately goes on building on its strong opening and trades higher.

2) Market does not offer any meaningful correction. The corrections are in the form of shallow sideways movements after a strong breakout bars.

3) The market has a few strong wide range bars in the direction of the trend.

4) Market after opening does not dip much and hence it opens at the low of the day and closes at the high of the day.

5) Indicators/Oscillators remain in over bought/oversold region for extended period of time and the market instead of reversing continues in the direction of the trend.

6) Market entices the contra traders to take contra positions and then goes on taking out their stops thereby adding fuel to the fire.

7) The market does not give too many chances for traders ( who don't have positions and keep waiting for getting in ) to get in at advantages position.

These days are pleasure to trade as they do not give any threat if the traders enter in the direction of the trend.

Smart_trade

 

[Gaur_Krishna]

Hi Murthy & Anup,

Plz post the VWAP strategy. Better if you can guide those discussions with ST da...

Thanks in advance,

Regards,
Gaur_Krishna

Anup,

If you are talking about VWAP strategy and referring to NiftyFut, please note
that the market has been one-sided the entire day.

VWAP strategy comes handy when there is a reversal during the day and confirms
the direction when the difference between CMP and VWAP gets increasing and
crosses 35.

So, in my opinion, VWAP strategy did not come into operation on 14.01.2013
with reference to NiftyFut.

 

[Gaur_Krishna]

SWIFT concept.... Wait till trend emerge .....
Thanks ST da....

Regards,
Gaur_Krishna

On gap days we take trades on both sides...but as the emotions are high on the gap day, it is better to wait till a clear trend emerges before we take positions.

Smart_trade

 

[midas touch]

SWIFT concept.... Wait till trend emerge .....
Thanks ST da....

Regards,
Gaur_Krishna

Someone told me its Ambush Concept? Trading 5min by looking at trend on 30min?I think its on some another forum..not here?

 

[anup]

Anup,

If you are talking about VWAP strategy and referring to NiftyFut, please note
that the market has been one-sided the entire day.

VWAP strategy comes handy when there is a reversal during the day and confirms
the direction when the difference between CMP and VWAP gets increasing and
crosses 35.

So, in my opinion, VWAP strategy did not come into operation on 14.01.2013
with reference to NiftyFut.

No its not reversal, check the the thread..

 

[anup]

****duplicate*

 

[anup]

Hi Murthy & Anup,

Plz post the VWAP strategy. Better if you can guide those discussions with ST da...

Thanks in advance,

Regards,
Gaur_Krishna

SQUEEZE THE LAST DROP OF THE JUICE ........GO FOR THE KILL

This is one trading technique which I use very regularly and I wanted to share the same with all. At 2:40 -45 I was long in Nifty Futures and the market was looking strong. I had to take a decision whether to book some profits there or wait till the end.

We play on simple technique that find out which is a side which is trapped and how much are they under water. At 2:45 the weighted average of Nifty future was showing 5035-40 whereas NF was quoting at 5085....a clear gap of 40-45 points. This means that the market is heavy at the bottom or lots of trades have happened below 5035 ......and the longs are comfortable but shorts are now feeling the heat. They will come for covering their short positions......also at 3:10 the brokerages will square off all loosing positions which are not covered by margins. So here instead of booking profits add on every dip ......the bears are dieing to cover their short positions.

After 3:10-3:15 there is panic in bear camp.......the die-hard bears come to cover after 3:20 and it is adding fuel to the fire. We just have to watch market going up like a rocket.....last 20 min give us a very quick move up.......and we get best price when the bears say " damn.....cover at any price...." and that is where we liquidate our long position built up anticipating this to happen.........it is a fun to trade this move.......

 

[prabhsingh]

How to find out weighted average of Nifty future?

 

[anup]

How to find out weighted average of Nifty future?

http://www.nseindia.com/live_market...ument=FUTIDX&type=-&strike=-&expiry=31JAN2013

Check for VWAP it is called weighted average

 

[midas touch]

Is there any way to find out- whether its a trending day or range day,while putting Intraday trades?

Thanx