Trading Strategies Using Technical Analysis

[SwingKing]

Raunak Sir,

It seems a Head & shoulder pattern is yet to be confirmed in DLF. I have placed a SL Buy order at 339 and SL sell order at 333. rest of all is with the market to decide.

With regards,
Gangadharan

Gangadharan,

I can't comment on the same. Better if SM can take a shot at this. I don't trade stocks based on patterns.

Price is my King.

Tc

 

[melissa1991]

It can be of some use to u although I posted it in other thread

chinese govt.. dumping commodities in the market
http://www.bloomberg.com/news/2010-...ening-concerns-after-inflation-quickened.html

i had already read abt dis news in da mrng....thx 4 da link thou it gav me a detailed info abt wats goin on exactly....bt stil i dun noe how 2 study da charts n all....

 

[MurAtt]

I am Long 6100CE @ 112. Expecting at least 140 on the CEs.

Pos Div !!!!

 

[SwingKing]

Those who are getting worried on the markets and have taken the DLF short trade, can book profits now. In all, given the loss on the long and the profit on this short trade, you will still get about 12 - 14 K per lot.

I am holding on to the trade. Don't mind even if entire gains are wiped off.

Tc

 

[SwingKing]

No investment trades will be taken this week.

I need to see if Nifty sustains above 5900 - 5930 next week.

If it does not, we could get these stocks at much much cheaper value later on. Its better to bring in some discretion here.

For swing trades, if someone is in stocks which have fallen 10 - 12% in two days, then book profits as of now. Better entry levels can be seen next week. Markets cannot fall off the cliff every day.

All traders must be active on Swing trades. This is the market to trade. Don't miss the action.

Tc

 

[SwingKing]

Tata steel Futures has been shorted as mentioned before. Trade price average is between 614 - 616.

If results disappoint, we could get a similar move like DLF's. If results don't disappoint, then we'll have to smile and take our losses.

Love the Red. Embrace it. This is what will make you a trader !

Tc

 

[spatch]

Hey Stumper!!

Thanks for such an informative and thoughtful post (A happy and thankful smiley goes here (suggestion: add the smiley menu in quick reply section )

Now some follow-up questions

The reason traders should be properly capitalized is that it allows you room to make errors and still survive for another battle.

Imagine, you fighting it out with Traders who have 20Lacs at their disposal and you having 2Lacs (just a example). Assume both of you loose 1Lac in a week.

But that's what I meant, if I have 2 lacs, then I shouldn't be undertaking a trade in which 1 lac is at risk, right? My stop loss should be @ 2% of my equity.
(Right now am not dealing in futures)

Utilize Average True Range (ATR) to determine the average range movement in a day for a instrument.

That's a very nice suggestion, I'd seen ATR mentioned a few times, hadn't read about it though, will brush up my knowledge on it ASAP. Thanks for bringing this to my knowledge stumper!!

I'd appreciate if other experienced members also shed some light on their exit strategy.

No one does ride the whole trend. If ever in you life you do master this,

Of course, I don't expect to master it I don't have that much misconception about my skills All I meant was instead of bailing out of a >10% trend at the levels of 2%, I'd like to be able to stay till about 8-9%, that's all

So for example, once price reaches near my S/R zone and if i see price action stalling or showing weakness, i bail out.

What do you mean by price action, how do you evaluate if it is stalling/showing weakness??

Good point. Im a day trader and typically trade in fixed instrument , like some 8 stocks and Nifty. This are liquid stocks. I have decided to concentrate on only some liquid stocks and Nifty as this allows me to understand the behavior of this stocks , which helps me in the price action strategy that i utilize.

I think even I should do this....for the reason that you have mentioned, that it will enable me to understand the personality of that stock...

[hr]

Once again, thanks a lot for taking time out to respond to my queries :clap: (I know the code for this one )

 

[SwingKing]

Hey Stumper!!

Once again, thanks a lot for taking time out to respond to my queries :clap: (I know the code for this one )

Spatch,

All that you are asking is already there in this thread and many threads in the forum. Just take out some time to read it. Things are explained with examples.

Tc

 

[PGDIMES]

Love the Red. Embrace it. This is what will make you a trader !

Tc

Dear Raunak(hope I spelt it correctly),

With a bigger capital base for trading, I would surely embrace the red one day(sounds like "We shall overcome someday"):thumb:... But I'm fighting a lot with this colour for the last couple of days:rofl::rofl::rofl:...

 

[DanPickUp]

Pos Div !!!!

Hi SM

Some thoughts from outside.

I like the simpleness of your chart. Now, as you say, you are long the call 6100, build up on the decision made with some signals in it, I like to question you this :

If you bought now the 6100 call, I guess it was expensive as it is a call atm.

When your resistance line was touched the third time, why did you not buy there the 6100 put, as it was a put otm ( means it was not to expensive ) and now on the support line you could have sold an expensive atm 6100 call ?

You then could profit from time decay over the weekend

DanPickUp