Thoughts on Day/Swing Trading Part 2

[Smart_trade]

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

Thanx

When we start the trading day, it is not possible to find out whether it is a trending day or range day with any degree of certainty ,though you can get some clue from the previous day's price action and how the market opens today. But as the day progresses, it is definately possible to know what kind of day we are trading.

When we have a trend day at hand, we have to trade more aggressively as the odds are in favour of continuation of the strong trend in the same direction unless it proves otherwise.

For trend days refer to the post No 222 above for the tell-a-tale signals.

Smart_trade

 

[paras_123]

Can Some1, Please post a link for the same.:
Tell a tale - post no 222

Happy trading,
Paras

 

[Gaur_Krishna]

ST Da,
In the following chart,we see both , +ve & -ve divergence. So what is correct?

 

[paras_123]

Can Some1, Please post a link for the same.:
Tell a tale - post no 222

Happy trading,
Paras

Hi, Anyone ?
Paras

 

[calic]

Hi, Anyone ?
Paras

In the previous page
http://www.traderji.com/day-trading/72827-thoughts-day-swing-trading-part-2-a-23.html#post759280

 

[VIKAS 21]

Dear ST Sir

There a positive divergence in stochastics & chart showing breakout failure initially but finally it broke down PL...
Is it Failure of ( breakdout failure )????

 

[Smart_trade]

Dear ST Sir

There a positive divergence in stochastics & chart showing breakout failure initially but finally it broke down PL...
Is it Failure of ( breakdout failure )????

At times the market does not reverse on 1 divergence but it continues going down for 2 or 3 divergences. That is why it is necessary that after the divergence the market should show some strength, like breaking the pivot high, to confirm that the market is responding to positive divergence and is reversing.

Smart_trade

 

[VIKAS 21]

Thanks a lot Sir......

 

[Gaur_Krishna]

Thanks ST da.

Now I am seeing that most of the times breaking of SWING H/L or Piovt H/L is more essential than just indicators. Thus may be price action superseeds everything and every indicator. Correct?

Regards,
Gaur_Krishna

 

[Smart_trade]

Thanks ST da.

Now I am seeing that most of the times breaking of SWING H/L or Piovt H/L is more essential than just indicators. Thus may be price action superseeds everything and every indicator. Correct?

Regards,
Gaur_Krishna

Yes Krishna, very true....the indicators are just set ups which prepare us for a trade but the actual trade is when the market starts moving in an anticipated direction,so the price action supercedes everything else.....

It is like we would like to catch the bus on the first or second stop when it starts moving on the desired route....we would not go to the bus terminus and sit in the parked bus in anticipation/hope that this particular bus will start sometime and will ply on the desired route.....

Many times the set up gets completed but the market does not move in the desired direction.....so we wont get into a trade and keep waiting. When it breaks the pivots, market is sending a signal that it is now moving in our anticipated /desired direction and that is when we should enter in a trade.

Smart_trade