Thoughts on Day/Swing Trading

[Satyen]

Despite of Gap ... trend did not continue ... failed here ... it even failed previous time as I have marked in chart ... what does this say ?

This says no matter what method one uses to identify trend etc .... Markets respect none and can reverse whenever it wants to .... market does not work according to method ... probability can be increased with such method though

Hi
Mahindra please see the Below chart when it works how much it gives , 2/3 mirginal loss should not be a matter of concern ...

Again Visualy checked From 2008 it gives very less signal on daily but 1/2 successfull out of 4/5 total signal given in a year gives wonderfull returns .... only thing it has very less no of oppertunity .....

 

[Smart_trade]

Thanks Satyen for the chart.....the essence of trading is to find a method which works more often than it fails....and trade the method with stoploss and good MM and make more in winning trades than what you loose in loosing trades....

Smart_trade

 

[girishhu1]

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

hi stda,
i would be trading in 5m tf, generally in bank nifty or a few liquid stocks like sbi, tisco, tatasteel, icicietc.
The support resistance lines on 5m tf chart should be plotted based on eod, hrly or 30m,15m tf?
if it is eod/daily basis then whether hi/lo for only one day is to be considered or more?
whether support resistance based on candlestick patterns are to be considered?
again in case of candlesticks, wheter wicks are to be considered or only closing prices are to be considered?
also waiting anxiously for your TDST resistance line explaination
you have given guidelines for sideways market. newbies like me get lost in trending market as none of the indicators work.so request u to give some guidelines for trending markets also.
i m using rsi14( for divergence), rsi5( for trend), dmi/adx( for trend), vol/oi,stoch 8,3,3( for entry/exit), mfi(strength), bb20,2 and ema/sma.
pl suggest a suitable combination of indicators- limited to 2-3.
your explaination regarding trend strengthening and trend reversal are really wonderful and useful.Oscillator ob/os rule is superb
regards,
girish
ps : pl forgive me for basic questions but without answers to these, there is no meaning to trading, isn't it

 

[sachin928111]

hi
every1 i m trading for last 2 days with 20000 from angel so far both days positive earned abt 1000 rs i want to know wen i buy or sell in odin prices are in multiple of 5 paise but in my message in mobile prices are like 63.91 these r not in multiple of 5 paise wts this pl tell me. thanks in advane

 

[sunny_cool]

hi
every1 i m trading for last 2 days with 20000 from angel so far both days positive earned abt 1000 rs i want to know wen i buy or sell in odin prices are in multiple of 5 paise but in my message in mobile prices are like 63.91 these r not in multiple of 5 paise wts this pl tell me. thanks in advane

Sachin you are getting these prices because they deduct the charges for your trader & you are getting net price of your trade

 

[rajputz]

Hi ST sir and all the other members,

Does any body have the AFL that can detect the Wolf wave formation. I have one that can detect the harmonic patterns, but needed wolf wave afl just for study purposes.

Thans in advance.

 

[stockanalist]

That is average price as all the shares bought are not at the same price so u get an average price of your purchased lot.

hi
every1 i m trading for last 2 days with 20000 from angel so far both days positive earned abt 1000 rs i want to know wen i buy or sell in odin prices are in multiple of 5 paise but in my message in mobile prices are like 63.91 these r not in multiple of 5 paise wts this pl tell me. thanks in advane

 

[columbus]

hi
every1 i m trading for last 2 days with 20000 from angel so far both days positive earned abt 1000 rs i want to know wen i buy or sell in odin prices are in multiple of 5 paise but in my message in mobile prices are like 63.91 these r not in multiple of 5 paise wts this pl tell me. thanks in advane

Simple !!! Say ,first you purchased at 60.00,hundred shares and 200 shares
at 60.05 ,then your average purchase is 300 at price of 60.03.

 

[girishhu1]

hi stda,
wish an early recovery from illness.
in the meantime, i m putting one more querry as i m confident of a very neat and easy to understand /remember answer from you.
the market remains ragebound and starts suddenly trending.newbies like me who use simple techniques mostly suitable for trading market, get caught in action on wrong foot. i use bb for daytrading and enter when band is pierced and next candle lie in bb with reversal signal like doji, hammer etc.alongwith stoch signal. but today, evenafter complying all rules sl were hit. on hindsight, i inferred that market was trending, particulary banking sector. so my question is while daytrading how one will come to know that market has started trending.
other than moving averages, what else one should keep focussed- any indicator, any pattern. here i must confess that your method of widening gap in current swing low and previos swing hi could have been useful but need practice. if you can put a few more examples on same, it would be easy to remember gap phenomenon
regards and once again best wishes for your health
girish

 

[timepass]

Hi Girishu1, try co-relating RSI also along with stochs, post ur charts and results here.