Trading Stock Futures for the day

[niftytaurus]

thats right, i use only support & resistance level for my trades. I do not use any other indicators. I always keep a thumb rule not to Short at support & not to buy at resistance. But sometimes due to emotional factor i do make mistake of just doing exactly the opposite trades.

I follow list of few momentum stocks like auropharma, tatasteel, arvind etc.

whenever these stocks trade near their support level i just buy and keep days low as stop loss, if the stop loss is hit , i reverse my positions and go short.

same for short trades, i short at resistance level and sometimes if the stock breaks that resistance and hit my stop loss, i reverse my position and go long. Whenever the momentum stocks gives a breakout, it will be really huge and we need to make use of that.

I keep trailing my stop loss with 5 mins S/R level and exit based on my TSL.

Hi
Thanks for ur reply & giving insight into ur nice & profitable trading setup...
some more queries..s& r is very subjective...every trader would decide differently? ...for u what levels are important? I mean previous swing low /HTF s& r/ etc...
On which time frame u decide ur levels ?
Thanks

 

[Cubt]

but still u have to post ur chart.....actually I was waiting to see ur chart how u done ur trade today.....this may help us our trading skill.....

Sure, will post my charts today..

 

[Cubt]

Hi
Thanks for ur reply & giving insight into ur nice & profitable trading setup...
some more queries..s& r is very subjective...every trader would decide differently? ...for u what levels are important? I mean previous swing low /HTF s& r/ etc...
On which time frame u decide ur levels ?
Thanks

When I day trade, I check for 5 mins support and resistance level and trade accordingly. When I do positional trade, I check support n resistance on daily time frame.

Sometimes when a stock is in great trend like Auropharma its wise to just wait for the stock to retrace back to super trend line in 5 mins chart and then enter into it.

 

[Cubt]

Arvind: this stock was in downtrend since 158 and came down to 138 levels. However even though the market tanked, this stock did not go down below 138 levels. From Jan 27th to 30th, the stock was just consolidating and lot of buying support coming in around 138. On 31st Jan, Q3 results were out with good results, the stock was up just 2 to 3%.

So I went long around 9:30 at day’s high at 142(futures) and with day’s low (139) as stop loss. As expected the stock did not go down further and resumed its uptrend. I exited around 1:30 at 147(futures) due to some other work I couldn’t continue the trade. But as per chart I should have hold on to my trade with trailing stop loss at 146. I expect the stock to move up further in coming days if 146 is not breached.

 

[Cubt]

Auropharma:
entered the stock around 9:35 at 458(futures) with day’s low as stop loss at 453. The stock went up to 460 but couldn’t sustain, it went down & hit days low. My loss in this trade was 10k, I reversed my trade to short at 453 as the days low was hit & kept days high as stop loss (460) I thought the stock would correct.

But till 11:20 the stock was just trading flat, lot of buying support coming at 455 levels. So I thought why should I wait for the stock to hit my stop loss again, as I could see the stock couldn’t go down further, I immediately reversed my position from short to long at 455. Another loss of 4k. so total loss is 14k in auropharma, but I was sure it would move higher anytime soon.

the stock eventually bounced back & started moving up higher. It moved till 469 but retraced back to 462 but I exited around 465 at 1:30 due to time constraint. But I know it would move up further if 462 is not broken. As expected it moved much higher till 475.

As you can see, as per 5 mins super trend chart the stock is in buy mode since 445 and the retrace around 462 is an opportunity to add one more lot. If anyone has entered the stock as per super trend, they would have made more money.

 

[Cubt]

My Contract note

 

[Gandhar.]

Auropharma:
entered the stock around 9:35 at 458(futures) with day’s low as stop loss at 453. The stock went up to 460 but couldn’t sustain, it went down & hit days low. My loss in this trade was 10k, I reversed my trade to short at 453 as the days low was hit & kept days high as stop loss (460) I thought the stock would correct.

But till 11:20 the stock was just trading flat, lot of buying support coming at 455 levels. So I thought why should I wait for the stock to hit my stop loss again, as I could see the stock couldn’t go down further, I immediately reversed my position from short to long at 455. Another loss of 4k. so total loss is 14k in auropharma, but I was sure it would move higher anytime soon.

the stock eventually bounced back & started moving up higher. It moved till 469 but retraced back to 462 but I exited around 465 at 1:30 due to time constraint. But I know it would move up further if 462 is not broken. As expected it moved much higher till 475.

As you can see, as per 5 mins super trend chart the stock is in buy mode since 445 and the retrace around 462 is an opportunity to add one more lot. If anyone has entered the stock as per super trend, they would have made more money.

a -ww in auropharma(tgt close to 400)
may be waiting for results just like biocon

 

[Cubt]

a -ww in auropharma(tgt close to 400)
may be waiting for results just like biocon

Gandhar,

what is -ww? and how do we decide the target level is 400? can you please explain??

 

[Gandhar.]

Hi
Explanation of wolf wave (from book Street Smart by Linda Raschke):
1. Number 2 wave is a top.
2. Number 3 wave is the bottom of a first decline.
3. Number 1 wave is the bottom prior to wave 2 (top). Point 3 must be lower than point 1.
4. Number 4 wave is the top of wave 3. The wave 4 point should be higher than the wave 1 bottom.
5. A trend line is drawn from point 1 to point 3. The extension of this line projects to the anticipated reversal point which we will call wave 5. this is the
entry point for a ride to the epa line (1 to 4).
6. The Estimated Price at Arrival (EPA) is the trend line drawn from points 1 to 4. This projects the anticipated price objective. Our initial stop is placed just beneath the newly formed reversal at point 5. It can then be quickly moved to breakeven.
IMPORTANT POINT: You cannot begin looking for the Wolfe Wave until points
1, 2, 3, and 4 have been formed. Keep in mind that point 3 must be lower than point 1 for a buy setup. It must be higher than point 1 for a sell setup. Also, on the best waves point 4 will be higher than point 1 for a buy setup and lower than 1 for a sell setup. This ensures that absolute runaway market conditions do not exist.

A Negative WW is basically an Ascending Wedge & a Positive WW is a Descending Wedge.

The only difference is there are price targets attached to the WW.

In a way, WW's are classical chart patterns which were discovered hundred years back and renamed by Mr Bill Wolfe.

Gandhar,

what is -ww? and how do we decide the target level is 400? can you please explain??

link to thread



add--- some more info in this link from investopedia

 

[RAAMAKANT]

a -ww in auropharma(tgt close to 400)
may be waiting for results just like biocon

But Gandhar, in post 124 Cubt said result were out on 31 Jan. only with good no. If this is post results run up then doubtful for -WW trigger till point 3 holds.