Trading Strategies Using Technical Analysis
- Thread starter SwingKing
- Start date
- Tags trading strategies
re: "Trading Strategies Using Technical Analysis".
I did trade today by adding E-Wave and ABC correction
along with Fib Time Retracement! Also Alternative Price
projection has been added to setup!
it was good trade
but it should be "luckily a good trade" because of sudden
upside break,so i am not much satisfied and i think this will
exceptional in future benchmarking of setup
Problem is how to qualify wave in E-wave!
i am confusing with small correction as Wave
i'm following three rules to qualify it
1.wave 2 should fall below wave 1
2.wave 3 should be maximum among wave 1,2,3
3.wave 4 should not overlap with wave 1
is there any other simple or supplementary condition
to ensure the qualification waves?
please make a review of my chart and comment on
execution of setup!
I did trade today by adding E-Wave and ABC correction
along with Fib Time Retracement! Also Alternative Price
projection has been added to setup!
it was good trade
but it should be "luckily a good trade" because of sudden
upside break,so i am not much satisfied and i think this will
exceptional in future benchmarking of setup
Problem is how to qualify wave in E-wave!
i am confusing with small correction as Wave
i'm following three rules to qualify it
1.wave 2 should fall below wave 1
2.wave 3 should be maximum among wave 1,2,3
3.wave 4 should not overlap with wave 1
is there any other simple or supplementary condition
to ensure the qualification waves?
please make a review of my chart and comment on
execution of setup!
re: "Trading Strategies Using Technical Analysis".
Excellent trade, wonderfully executed and very well analysed.
1) Firstly, there is NO TRADE which is a lucky trade. Give yourself some credit for this wonderful piece of analysis.
2) Now, since you are using Robert Miner's Dual time frame Strategy, I will show you how to execute it with greater efficiency so that you can enter the trade early. Also, with this point, you will know that it wasn't luck that favoured you. But it was your analysis. Look at the chart below, I have marked three letters A,B,C. THIS is the key to the setup. At point 1, there is a new swing high. From there on there is the first swing low (marked as A). Then the prices rally a bit to form mark B. Now to determine whether the markets will move higher, the low at A should be taken out and new low should be formed. Then, after the new low is formed, the market must again move back in the range of A. When this happens, then, just above B you must enter the trade and hold on to it. This is what actually happens. Market from B forms a new low at C (low is a low even if it is just few paise below). Then from C, the prices move back to A range. This signifies that the new high is probably going to be made. Once B is taken out, you must enter and ride the trend. You entered at 145.5, whereas according to Rob Miner's work, you should have entered at 144. Hope you got my point.
3) Your usage of E-Wave and retracement was very good. Whether or not the ewave will complete is difficult to say. But once the A,B,C thing happens, it is more than likely that the new high is going to be formed. Targets as you have done can be measured from APP and Fib extensions (Internal and External). I hope you used the dual momentum setup with stochastic of two different time frames. You can plot both the stochastic on the same chart. Will be easier for you to analyse trades.
I did trade today by adding E-Wave and ABC correction
along with Fib Time Retracement! Also Alternative Price
projection has been added to setup!
it was good trade
but it should be "luckily a good trade" because of sudden
upside break,so i am not much satisfied and i think this will
exceptional in future benchmarking of setup
Problem is how to qualify wave in E-wave!
i am confusing with small correction as Wave
i'm following three rules to qualify it
1.wave 2 should fall below wave 1
2.wave 3 should be maximum among wave 1,2,3
3.wave 4 should not overlap with wave 1
is there any other simple or supplementary condition
to ensure the qualification waves?
please make a review of my chart and comment on
execution of setup!
along with Fib Time Retracement! Also Alternative Price
projection has been added to setup!
it was good trade
but it should be "luckily a good trade" because of sudden
upside break,so i am not much satisfied and i think this will
exceptional in future benchmarking of setup
Problem is how to qualify wave in E-wave!
i am confusing with small correction as Wave
i'm following three rules to qualify it
1.wave 2 should fall below wave 1
2.wave 3 should be maximum among wave 1,2,3
3.wave 4 should not overlap with wave 1
is there any other simple or supplementary condition
to ensure the qualification waves?
please make a review of my chart and comment on
execution of setup!
1) Firstly, there is NO TRADE which is a lucky trade. Give yourself some credit for this wonderful piece of analysis.
2) Now, since you are using Robert Miner's Dual time frame Strategy, I will show you how to execute it with greater efficiency so that you can enter the trade early. Also, with this point, you will know that it wasn't luck that favoured you. But it was your analysis. Look at the chart below, I have marked three letters A,B,C. THIS is the key to the setup. At point 1, there is a new swing high. From there on there is the first swing low (marked as A). Then the prices rally a bit to form mark B. Now to determine whether the markets will move higher, the low at A should be taken out and new low should be formed. Then, after the new low is formed, the market must again move back in the range of A. When this happens, then, just above B you must enter the trade and hold on to it. This is what actually happens. Market from B forms a new low at C (low is a low even if it is just few paise below). Then from C, the prices move back to A range. This signifies that the new high is probably going to be made. Once B is taken out, you must enter and ride the trend. You entered at 145.5, whereas according to Rob Miner's work, you should have entered at 144. Hope you got my point.
3) Your usage of E-Wave and retracement was very good. Whether or not the ewave will complete is difficult to say. But once the A,B,C thing happens, it is more than likely that the new high is going to be formed. Targets as you have done can be measured from APP and Fib extensions (Internal and External). I hope you used the dual momentum setup with stochastic of two different time frames. You can plot both the stochastic on the same chart. Will be easier for you to analyse trades.
re: "Trading Strategies Using Technical Analysis".
Thank you very much sir! That is really a very good explanation load with all i want!
I totally forget that point, Every small section of E-wave may be ABC correction and large section of E-Wave may be 5 wave,if it so then those waves are best qualified?
i understood your ABC correction! could you please why ABC correction happening in market ?
could you please comment on mass physiology behind all popular setup like Bollinger Band etc ?
one more question,please tell how to set two different Time Frame stochastic on same window in Amibroker?
Sir, Thanks again for spending your valuable time for replying and editing my chart to make your explanation more understandable to me! you are just amazing,i appreciate your effect to share your knowledge with us!
keep your good work,sir!
Thank you very much sir! That is really a very good explanation load with all i want!
I totally forget that point, Every small section of E-wave may be ABC correction and large section of E-Wave may be 5 wave,if it so then those waves are best qualified?
i understood your ABC correction! could you please why ABC correction happening in market ?
could you please comment on mass physiology behind all popular setup like Bollinger Band etc ?
one more question,please tell how to set two different Time Frame stochastic on same window in Amibroker?
Sir, Thanks again for spending your valuable time for replying and editing my chart to make your explanation more understandable to me! you are just amazing,i appreciate your effect to share your knowledge with us!
keep your good work,sir!
re: "Trading Strategies Using Technical Analysis".
could you please why ABC correction happening in market ?
The way I think, ABC is a way for uncertain traders to be driven out of the market. Now, lets say someone is not sure of this trade. The moment a new low is made (C), he will think of unwinding the position. Had he been an informed investor with faith on his analysis, then he would have seen the prices go back again in the 'A' range and would have profited. Those who are unsure about their own analysis and those who do not trade pragmatically are eventually driven out at point C.
could you please comment on mass physiology behind all popular setup like Bollinger Band etc ?[/B]
What exactly do u want to know ... please elaborate ..
one more question,please tell how to set two different Time Frame stochastic on same window in Amibroker?
Now if you are using 5min chart for smaller time frame, select the stochastic indicator and this will be stochastic for 5-min chart. Now if you want to use 30 min chart (larger time frame) and want to see level of stochstic of this then save the attached file in your indicator list as "Stochastic 30 Min" and then select indicator and press insert linked. Now you get two stochastic (one of 5 min chart and other of 30 min chart). Below is the code for stochastic 30 min (8,3,3).
// Save this afl as indicator in your C:/program files/ amibroker/formula/indicator folder ... name it stochastic 30 min
TimeFrameSet(2*in15Minute);
Plot(StochK(8,3),"Stochastic K 30 Minutes",colorRed,styleLine);
Plot(StochD(8,3,3),"Stochastic D 30 Minutes",colorBlue,styleLine);
TimeFrameRestore();
could you please why ABC correction happening in market ?
The way I think, ABC is a way for uncertain traders to be driven out of the market. Now, lets say someone is not sure of this trade. The moment a new low is made (C), he will think of unwinding the position. Had he been an informed investor with faith on his analysis, then he would have seen the prices go back again in the 'A' range and would have profited. Those who are unsure about their own analysis and those who do not trade pragmatically are eventually driven out at point C.
could you please comment on mass physiology behind all popular setup like Bollinger Band etc ?[/B]
What exactly do u want to know ... please elaborate ..
one more question,please tell how to set two different Time Frame stochastic on same window in Amibroker?
Now if you are using 5min chart for smaller time frame, select the stochastic indicator and this will be stochastic for 5-min chart. Now if you want to use 30 min chart (larger time frame) and want to see level of stochstic of this then save the attached file in your indicator list as "Stochastic 30 Min" and then select indicator and press insert linked. Now you get two stochastic (one of 5 min chart and other of 30 min chart). Below is the code for stochastic 30 min (8,3,3).
// Save this afl as indicator in your C:/program files/ amibroker/formula/indicator folder ... name it stochastic 30 min
TimeFrameSet(2*in15Minute);
Plot(StochK(8,3),"Stochastic K 30 Minutes",colorRed,styleLine);
Plot(StochD(8,3,3),"Stochastic D 30 Minutes",colorBlue,styleLine);
TimeFrameRestore();
Last edited:
re: "Trading Strategies Using Technical Analysis".
This is a veyr good article on your question. If you still don't understand it ... then let me know ... I'll write about it then ...
Tc
http://www.investopedia.com/articles/trading/02/121602.asp
This is a veyr good article on your question. If you still don't understand it ... then let me know ... I'll write about it then ...
Tc
http://www.investopedia.com/articles/trading/02/121602.asp
AFL for horizontal breakout (Intraday Trading)
I had explained this setup earlier. This is the AFL for it. Breakout from intraday range. Signals are given for breakout after 1pm and between 2pm (most effective breakout's between this time frame). This afl plots the Hi-lo Range as well as fibonacci levels for the (hi - lo) range. You will have to change the initial timing setting as market open at 9 now. Special thanks to Vinodkiyer for contributing in this afl. This is just a starting point of intra-day trade pattern. You can add your own tools to it to filter bad trades.
//AFL FOR HORIZONTAL RANGE PATTERN (INTRADAY SETUP)
isRth = TimeNum() >= 094500 & TimeNum() <= 095459;
isdRth = TimeNum() >= 095500 & TimeNum() <= 130000;
aRthL = IIf(isRth, L, 1000000);
aRthH = IIf(isdRth, H, Null);
aRthLd = IIf(isdRth, L, 1000000);
DayH = TimeFrameCompress( aRthH, inDaily, compressHigh );
DayH = TimeFrameExpand( DayH, inDaily, expandFirst );
DayL = TimeFrameCompress( aRthLd, inDaily, compressLow );
DayL = TimeFrameExpand( DayL, inDaily, expandFirst );
Bars = BarsSince(TimeNum() >= 094500 AND TimeNum() < 095959);//,BarIndex(),1); // AND DateNum()==LastValue(DateNum());
x0 = BarCount-LastValue(Bars);
x1 = BarCount-1;
DayHline=LineArray(x0,LastValue(DayH),x1,LastValue (DayH),0);
DayLline=LineArray(x0,LastValue(DayL),x1,LastValue (DayL),0);
Range = DayH - DayL; //For Fibonacci Retracements
isdc = TimeNum()>=152800 & TimeNum() <=153000;
adc = IIf(isdc, C, Null);
DayC = TimeFrameCompress( adc, inDaily, compressHigh );
DayC = TimeFrameExpand( DayC, inDaily, expandFirst );
/****************************************************************************************************************************************************************/
// Buy_Short_Sell_Cover Criteria
Buy = C > DayH & TimeNum() >=130000 & TimeNum() <= 140000 ;
Sell = TimeNum() >=152500;;
Short = C < DayL AND TimeNum() >=130000 & TimeNum() <= 140000 ;
Cover = TimeNum() >=152500;
/***************************************************************************************************************************************************************/
// Plotting
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
Plot(DayHline,"RH",colorOrange,styleLine);
Plot(DayLline,"RL",colorOrange,styleLine);
Plot(Range*1.272 + DayL,"UT 1", colorBlue, styleDashed);
Plot(Range*1.618 + DayL,"UT 2", colorBlue, styleDashed);
Plot(Range*0.618 + DayL,"R1",colorDarkRed,styleDashed);
Plot(Range*0.500 + DayL,"R2",colorDarkRed,styleDashed);
Plot(Range*0.381 + DayL,"R3",colorDarkRed,styleDashed);
Plot(DayH - Range*1.272,"DT 1",colorRed,styleDashed);
Plot(DayH - Range*1.618,"DT 2",colorRed,styleDashed);
BuyArrow = Buy * shapeUpArrow;
SellArrow = Short * shapeDownArrow;
PlotShapes(BuyArrow ,colorGreen, 0,L,Offset=-15);
PlotShapes(SellArrow, colorRed, 0, H,Offset=-15);
_SECTION_END();
Buy =ExRem(Buy,Sell);
Sell=ExRem(Sell,Buy);
Cover=ExRem(Cover,Short);
Short = ExRem (Short,Cover);
/**************************************************************************************************************************************************************/
//Exploration
Filter = Buy OR Short;
AddColumn( Close, "Close", 1.2 );
AddColumn( Buy, "Buy Price", 1.2 );
AddColumn( Short, "Short Price", 1.2 );
AddColumn( DayH, "Day's High", 1.2 );
AddColumn( DayL, "Day's Low", 1.2 );
AddColumn( Volume, "Volume", 1.1 );
AddColumn(MA(Volume, 35), "Average Volume", 1.1);
AddColumn( DayC, "Day Close", 1.2 );
AddColumn(DayH - DayL, "Range", 1.2);
AddColumn(C*0.005,"Volatility",1.2);
/**************************************************************************************************************************************************************/
//Alerts
AlertIf( Buy, "SOUND C:\\Windows\\Media\\tada.wav", "Buy",2);
AlertIf( Short, "SOUND C:\\Windows\\Media\\notify.wav", "Short", 2 );
/**************************************************************************************************************************************************************/
I had explained this setup earlier. This is the AFL for it. Breakout from intraday range. Signals are given for breakout after 1pm and between 2pm (most effective breakout's between this time frame). This afl plots the Hi-lo Range as well as fibonacci levels for the (hi - lo) range. You will have to change the initial timing setting as market open at 9 now. Special thanks to Vinodkiyer for contributing in this afl. This is just a starting point of intra-day trade pattern. You can add your own tools to it to filter bad trades.
//AFL FOR HORIZONTAL RANGE PATTERN (INTRADAY SETUP)
isRth = TimeNum() >= 094500 & TimeNum() <= 095459;
isdRth = TimeNum() >= 095500 & TimeNum() <= 130000;
aRthL = IIf(isRth, L, 1000000);
aRthH = IIf(isdRth, H, Null);
aRthLd = IIf(isdRth, L, 1000000);
DayH = TimeFrameCompress( aRthH, inDaily, compressHigh );
DayH = TimeFrameExpand( DayH, inDaily, expandFirst );
DayL = TimeFrameCompress( aRthLd, inDaily, compressLow );
DayL = TimeFrameExpand( DayL, inDaily, expandFirst );
Bars = BarsSince(TimeNum() >= 094500 AND TimeNum() < 095959);//,BarIndex(),1); // AND DateNum()==LastValue(DateNum());
x0 = BarCount-LastValue(Bars);
x1 = BarCount-1;
DayHline=LineArray(x0,LastValue(DayH),x1,LastValue (DayH),0);
DayLline=LineArray(x0,LastValue(DayL),x1,LastValue (DayL),0);
Range = DayH - DayL; //For Fibonacci Retracements
isdc = TimeNum()>=152800 & TimeNum() <=153000;
adc = IIf(isdc, C, Null);
DayC = TimeFrameCompress( adc, inDaily, compressHigh );
DayC = TimeFrameExpand( DayC, inDaily, expandFirst );
/****************************************************************************************************************************************************************/
// Buy_Short_Sell_Cover Criteria
Buy = C > DayH & TimeNum() >=130000 & TimeNum() <= 140000 ;
Sell = TimeNum() >=152500;;
Short = C < DayL AND TimeNum() >=130000 & TimeNum() <= 140000 ;
Cover = TimeNum() >=152500;
/***************************************************************************************************************************************************************/
// Plotting
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
Plot(DayHline,"RH",colorOrange,styleLine);
Plot(DayLline,"RL",colorOrange,styleLine);
Plot(Range*1.272 + DayL,"UT 1", colorBlue, styleDashed);
Plot(Range*1.618 + DayL,"UT 2", colorBlue, styleDashed);
Plot(Range*0.618 + DayL,"R1",colorDarkRed,styleDashed);
Plot(Range*0.500 + DayL,"R2",colorDarkRed,styleDashed);
Plot(Range*0.381 + DayL,"R3",colorDarkRed,styleDashed);
Plot(DayH - Range*1.272,"DT 1",colorRed,styleDashed);
Plot(DayH - Range*1.618,"DT 2",colorRed,styleDashed);
BuyArrow = Buy * shapeUpArrow;
SellArrow = Short * shapeDownArrow;
PlotShapes(BuyArrow ,colorGreen, 0,L,Offset=-15);
PlotShapes(SellArrow, colorRed, 0, H,Offset=-15);
_SECTION_END();
Buy =ExRem(Buy,Sell);
Sell=ExRem(Sell,Buy);
Cover=ExRem(Cover,Short);
Short = ExRem (Short,Cover);
/**************************************************************************************************************************************************************/
//Exploration
Filter = Buy OR Short;
AddColumn( Close, "Close", 1.2 );
AddColumn( Buy, "Buy Price", 1.2 );
AddColumn( Short, "Short Price", 1.2 );
AddColumn( DayH, "Day's High", 1.2 );
AddColumn( DayL, "Day's Low", 1.2 );
AddColumn( Volume, "Volume", 1.1 );
AddColumn(MA(Volume, 35), "Average Volume", 1.1);
AddColumn( DayC, "Day Close", 1.2 );
AddColumn(DayH - DayL, "Range", 1.2);
AddColumn(C*0.005,"Volatility",1.2);
/**************************************************************************************************************************************************************/
//Alerts
AlertIf( Buy, "SOUND C:\\Windows\\Media\\tada.wav", "Buy",2);
AlertIf( Short, "SOUND C:\\Windows\\Media\\notify.wav", "Short", 2 );
/**************************************************************************************************************************************************************/
Last edited:
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