Thoughts on Day/Swing Trading

[4xpipcounter]

Now that my wrists are locked behind my neck, I have to type with my toes. Now I know why God made toes--lol.

I too have cervical spondylosis. I use a chair with arm rests and try to rest my elbows/ forearms on them as often as possible. The best relief is obtained by stretching the arms upwards and backwards.

So, I think that spondylosis is God's way of telling us to spend most of our time with wrists locked behind the neck

 

[EagleOne]

Hi ST
Hope you are feeling better.
BTW, I just read how Columbus, Timepass, and many other my fellow TJ friends, have/had the back problem.
Hmm...I think it would be good idea for me to give up trading and start my own Spinal Consultancy Service instead! What do you say? Do I have your blessings?

Take plenty of rest and fluids. Bye.

 

[4xpipcounter]

And your slogan could be, "How to soar with eagles rather than let back pain get you down."

Hi ST
Hope you are feeling better.
BTW, I just read how Columbus, Timepass, and many other my fellow TJ friends, have/had the back problem.
Hmm...I think it would be good idea for me to give up trading and start my own Spinal Consultancy Service instead! What do you say? Do I have your blessings?

Take plenty of rest and fluids. Bye.

 

[Smart_trade]

And your slogan could be, "How to soar with eagles rather than let back pain get you down."

Have you ever heard of a tiger not hunting because of back pain or eagle not flying because of back pain ? A trader does not feel any pain when he is trading right and market is rewarding him for trading right.....

Last 2 days were wonderful.....fergot about all the pain....

Smart_trade

 

[4xpipcounter]

Now, that's what I call smart trade(ing).

Have you ever heard of a tiger not hunting because of back pain or eagle not flying because of back pain ? A trader does not feel any pain when he is trading right and market is rewarding him for trading right.....

Last 2 days were wonderful.....fergot about all the pain....

Smart_trade

 

[girishhu1]

Thanks for the kind words, Anurag.

Very important question for every trader...let me share my views here .

1) Trends and rangebound markets are cyclical....after the strong trend expect the market to be rangebound before the trend resumes or the reversal takes place....excepion is V shape reversal which is rare in any case. So after trend move, be ready for a sideways move and after sideways move be ready for a trend move.

2) Volatility is also cyclical and mean reversing...so after volatile markets expect calm markets and after calm markets the volatility is waiting to return...this is much more predictable than the price direction.

3) For we intraday and swing traders 3 trends exist on every timeframe....they are a) Major Trend b) Visual Trend and 3) Short term trend....these 3 trends at any point are influencing the markets and when all 3 trends are in phase, we get a trend move......once 1 or 2 of them get out of phase, we get sideways moves.....

4) First indication that sideways move is a about to come is when one higher degree trend fails to make new high/low....we in daytrades trade short term trend...so when we see market is not making new high/low in visual trend, we should expect sideways phase to set in.

5) In the initial period of sideways move the maket still trends ok.....but at later stage the market goes flat....but by that time we know that it is entering a sideways phase....here too you will get a trend on smaller timeframes....so in sideways move find out which timeframe gives us trends and trade that timeframe.....market may not be trending on 15 min timeframe but it may be trending on 1 or 3 min timeframes.But trading becomes tough in this period and the moves smaller...

6) In sideways markets the quantity automatically goes down as the supports/resistance do not get broken and our adds are restricted.

7) In sideways market we need to trade on selling near the resistance and buying near the supports....I have a few methods which I monitor in such phase.....
Problem of sideways phase can be tackled in the above manner.....we cannot totally eliminate this problem.....we have to live with it....that is the reason we should add and make maximum in trends so that we can take these sideways periods in our strides.

Hope I am able to add some value to your thought process....

Smart_trade

hi st,
can you describe the metods forselling near resistances and buying near support as mentioned above. this would be of great help to all newbies like me.
wish u a fast recovery from spondlytis and best health
regards,
girish

 

[amanfree]

hi st,
can you describe the metods forselling near resistances and buying near support as mentioned above. this would be of great help to all newbies like me.
wish u a fast recovery from spondlytis and best health
regards,
girish

there is a very nice book by Joe Ross - 'Trading by the book' and i think in third or fourth chapter (Trading in the range) he has written about how to deal with such sideways ranges. You can go thrh that book.

Happy trading

 

[SexyTrader]

Have you ever heard of a tiger not hunting because of back pain or eagle not flying because of back pain ? A trader does not feel any pain when he is trading right and market is rewarding him for trading right.....

Last 2 days were wonderful.....fergot about all the pain....

Smart_trade

Thats the SPIRIT ! :thumb:

 

[Smart_trade]

hi st,
can you describe the metods forselling near resistances and buying near support as mentioned above. this would be of great help to all newbies like me.
wish u a fast recovery from spondlytis and best health
regards,
girish

Girish,

Once you identify that the market you are trading is in sideways trend in your timeframe, you can use the following techniques to trade the sideways range.

1) Use oscillator such as stochastics or RSI to sell in overbought zone near the resistance and buy in oversold zone near supports.

2) Draw the support/resistance levels boundries and observe how the market behaves near the support/resistance levels, observe the volumes, candlestick patterns. A hammer near a support is a low risk buy and so is a hanging man or an evening star near a resistance level low risk sell .

3) Observe the angle of a rally or a decline in a sideways zone and if the rally looks tired out near resistance , sell .....if decline looks exhausted near the support, buy.....

4) Observe some patterns on lower timeframe...so if you are in sideways in 30 min charts, mark a TDST resistance line in 5 min and a rally in 5 min approaching this TDST resistance line....that is a great place for a low risk sell. Will explain what TDST is in next few posts.

Or a Wolfe Wave 5 on 5 min happening near resistance level in 30 min is a great place to initiate a sell trade......or a Wolfe Wave 5 happening on 5 min timeframe near a support on 30 min is a great place for a low risk buy trade.

5) Failures and Rejections happening near sideways boundries offer great trades . So if you see a breakout failure on 5 min chart near a upper boundry of sideways move on 30 min, that gives a excellent place to take a short trade with very close stoploss. Similarly failure of a pivot breakdown on 5 min chart near a lower boundry support line on 30 min chart gives excellent buy trade with close stops.

6) Selling near a resistance and buying near a support with stops slightly above the resistance and slightly below the support are low risk trades.

Hope you will find some trading ideas given above useful for your trading in the sideways zone.

Smart_trade

 

[girishhu1]

hi st,
thanks a billion times
now waiting for tdst resistance line explaination
HI AMANFREE,
THANKS i will surely read the book
regards
girish