Thoughts on Day/Swing Trading
- Thread starter Smart_trade
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There are some methods which trade only if the higher timeframe is trending. They dont trade when higher timeframe is in sideways mode.
On sideways move days we have to be happy with small moves and we need to trade very fast for smaller moves
For countertrend trading one either needs to identify the exhaustion of the move and take a countertrend position or the market has to be in sideways mode so we buy near support and sell near resistance. There are ways of identifying move exhaustion.
We will take some range days and see how to trade on those days...
Smart_trade
On sideways move days we have to be happy with small moves and we need to trade very fast for smaller moves
For countertrend trading one either needs to identify the exhaustion of the move and take a countertrend position or the market has to be in sideways mode so we buy near support and sell near resistance. There are ways of identifying move exhaustion.
We will take some range days and see how to trade on those days...
Smart_trade
Great Words of wisdom,
thankyou Smart_trade ji,
could you show us a chart example explaining major/visual/shortterm trends
thankyou Smart_trade ji,
could you show us a chart example explaining major/visual/shortterm trends
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
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
All of this is very nice.But all of this is what Saint has been talking about and trying to teach.Probably you being the Super Moderator of that forum,you should have at least given Saint a mention.
Moreover,all of this and what you are about to say might lead to a copyright infringement,not giving him credit.
This thread will reach a greater audience,I am sure,through Traderji.But it still is wrong passing on other's ideas as one's own.
Moreover,all of this and what you are about to say might lead to a copyright infringement,not giving him credit.
This thread will reach a greater audience,I am sure,through Traderji.But it still is wrong passing on other's ideas as one's own.
Dear jraj,
I have noted the contents of your post and I thank you for the same.
This thread is not started to "teach" anything ....this is started to share trading ideas with other traders .I am sure your concern is out of love and respect for Saint which I too share.
So far I have talked about trends,volatility,multiple timeframes etc which are general and basic to technical analysis.....no person or forum has any invention rights on these things. I do not want to share any specific method/system which is proprietory to Saint or the other forum you mentioned.And whenever I feel like sharing these methods, I will certainly give credit to the inventor of the method. Our ideas/thoughts are influenced /inspired by what we read in books,talk to other traders,our own experience but any specific method will be shared with mentioning the name of the inventor.
I have kept Saint informed about what I am posting and he very magnanimously mentioned that if anything is going to help traders in improving their trading, go ahead and share ....so no copyright issues will come in the way of sharing. But I dont plan to share any specific method/technique of the other forum here as yet.
Hope the above clarifies the position.....
Best wishes,
Smart_trade
I have noted the contents of your post and I thank you for the same.
This thread is not started to "teach" anything ....this is started to share trading ideas with other traders .I am sure your concern is out of love and respect for Saint which I too share.
So far I have talked about trends,volatility,multiple timeframes etc which are general and basic to technical analysis.....no person or forum has any invention rights on these things. I do not want to share any specific method/system which is proprietory to Saint or the other forum you mentioned.And whenever I feel like sharing these methods, I will certainly give credit to the inventor of the method. Our ideas/thoughts are influenced /inspired by what we read in books,talk to other traders,our own experience but any specific method will be shared with mentioning the name of the inventor.
I have kept Saint informed about what I am posting and he very magnanimously mentioned that if anything is going to help traders in improving their trading, go ahead and share ....so no copyright issues will come in the way of sharing. But I dont plan to share any specific method/technique of the other forum here as yet.
Hope the above clarifies the position.....
Best wishes,
Smart_trade
Dear Smart Trade,
I've been looking at your posts, and I have same kind of mindset as yours, quick entries and exits on breakouts. Many a times, it doesn't materialize, and I lack disciplined approach, hence my losses have deepened to the level of making me literally go broke.
I request you to post the proper methods one must have to achieve desired goals with such outlook. Even a strategy perhaps would be really give me some hope toward realizing at least a 1/4 of capital I've lost.
Expecting your kind reply.
Regards,
I've been looking at your posts, and I have same kind of mindset as yours, quick entries and exits on breakouts. Many a times, it doesn't materialize, and I lack disciplined approach, hence my losses have deepened to the level of making me literally go broke.
I request you to post the proper methods one must have to achieve desired goals with such outlook. Even a strategy perhaps would be really give me some hope toward realizing at least a 1/4 of capital I've lost.
Expecting your kind reply.
Regards,
Hello Nihilistic,
Try the following...they might help you to improve your success rate and profitability :
1) Use a higher timeframe which should be about 5-6 times your trade timeframe for deciding the direction in which you will take the trades. So if you are trading on 3 min bars, use 15-20 min bar as higher timeframe to give you a trade setup. For 5 min bars the higher timeframe will be 20 or 30 min bar. If higher timeframe is trending down, take all short trades...and vice versa
2) If the breakout/breakdown fails and the market closes in the range which it broke then it is a breakout failure and better to get out of your position without waiting for stoploss to hit ......
Wait for clearly set up trades....that will help. Trading bothways requires good understanding of market action...dont attempt that initially.
Smart_trade
Try the following...they might help you to improve your success rate and profitability :
1) Use a higher timeframe which should be about 5-6 times your trade timeframe for deciding the direction in which you will take the trades. So if you are trading on 3 min bars, use 15-20 min bar as higher timeframe to give you a trade setup. For 5 min bars the higher timeframe will be 20 or 30 min bar. If higher timeframe is trending down, take all short trades...and vice versa
2) If the breakout/breakdown fails and the market closes in the range which it broke then it is a breakout failure and better to get out of your position without waiting for stoploss to hit ......
Wait for clearly set up trades....that will help. Trading bothways requires good understanding of market action...dont attempt that initially.
Smart_trade
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