Trading Strategies Using Technical Analysis

[simple_trader]

Hello Raunak and Simple_Trader,

Ur point is valid but problem with me is I am not having consistently profitable trades and hence I m waiting for 1:2 to 1:3 risk reward to keep my account in profit... hard and stupidic to accept and speak a loud in public but my success vs failure ratio is 1:1 so if i trade with 1:1 risk reward, i end up having no profit - no loss... which is not worth investing employing money, time and efforts especially... No offense, just a personal opinion....

On separate note, I found something interesting on RPower chart... may not be applicable in real life trading but still thought of sharing with you all for the discussion...

Hello Apurv,

As per me all trades have 1:1 risk reward (my personal interpretation). It is only myth that we think 1:2, 1:3, 1:4 risk reward. Other wise, we get option spread trade with 1:4 risk reward. Does it mean that we will make tons of money if we trade option spread? It is not. Risk reward has trade off with probability of getting trade right. Actually many have different opinions in market.

Regarding rpower, nice finding! thebigger picture is it got stuck at weekly band, so correcting. If market condition is bad, then it can visit lower band. other wise it can give a bounce to 180.

Happy trading!!

 

[praveen taneja]

Apurv,

This might sound strange. But why wait for 1:2 or 1:3 risk reward trades. To me this concept does not make sense. I go for trades with 1:1 rewards. It just depends on the setup and the probability of it running in my favor. This is contrary to what you might have read in some books. But for me, the concept of risk to reward is blown out of proportion.

Tc

Sir I think all depend on experience of traders and his pocket size:thumb:
But I saw most of people when in loss stay in trade in hope and when in profit they are in a haste to book instead of trailing and I am one of them too

 

[eloor]

Re: "Trading Strategies Using Technical Analysis".

Yes, indeed I am interested. Please do the needful.
Regards.

 

[Apurv7164]

Apurv, this is completely normal. I'll advise you to develop a mechanical system first and trade it till you develop the necessary skills to analyze charts with higher probability using discretion based analysis. Hence be patient, read a book on how to develop systems and then go and build one.

Regarding RPOWER

What you are trying to do here is very effective. And amazingly this works with very good accuracy. However, ask yourself this: What does market tell you when correction bars are increasing? Can you tell me what this means? If you can't find the answer, let me know.

Tc

Yes Raunak, I see what you saying.... when correction days increases, bears are gaining more and more power and bulls loosing their strength day by day...
As far as this stock is concerned do you not think we shud give a shot to this analogy? Because after every correction it had made new high... just contemplating.....

 

[Apurv7164]

Hello Apurv,

As per me all trades have 1:1 risk reward (my personal interpretation). It is only myth that we think 1:2, 1:3, 1:4 risk reward. Other wise, we get option spread trade with 1:4 risk reward. Does it mean that we will make tons of money if we trade option spread? It is not. Risk reward has trade off with probability of getting trade right. Actually many have different opinions in market.

Regarding rpower, nice finding! thebigger picture is it got stuck at weekly band, so correcting. If market condition is bad, then it can visit lower band. other wise it can give a bounce to 180.

Happy trading!!

Happy Saturday Simple_Trader,

I put it in this way, every trade has probability of 1:1 but surely we can plan risk reward the way we want... what we are ready to loose vs what we can gain... now question comes of one's analytical skills and lil luck.... However, what I m trying here is, say for example i loose 5 trades and gets 5 trades positive - so 5 Rs loss and 10 Rs profit - at the end I will end up at least having 5 Rs profit...

 

[SwingKing]

Yes Raunak, I see what you saying.... when correction days increases, bears are gaining more and more power and bulls loosing their strength day by day...
As far as this stock is concerned do you not think we shud give a shot to this analogy? Because after every correction it had made new high... just contemplating.....

Apurv, your interpretation is not wrong, but it is entirely not correct. Let me put it in simple words.

When the number of correction candles increase, it does not always signify bears gaining control. In this case, even though the number of bearish candles are increasing, the stock is undergoing mere consolidation. The correct way to interpret this is that the "Cycle or the waiting period of the stock is increasing". This means, anyone now wishing to buy this stock, should be prepared for a little bit more holding time than the situation was on the previous minor cycle. Hope this helps.

Tc

 

[MurAtt]

Apurv ...

Another way is to look at the chart in a Weekly TF too ....

Price has taken resistance at 178 where some amount of supply has come in BUT follow-up supply vols are not there .. that means either the super vols in the push-up bar of breaking the resistance of 163 has liquidated somewhat .. and the stock may test 163 again once and then bounce back ....

But surely it is not in a downtrend as of now ....

Also the 163 levels were a horizontal trading range for many days and has been broken. Target for the same is 163+(163-136)=190 odd levels ...

If you see previous recent high, it is 210 BUT the body of the candle is from 194 which matches with the horizontal breakout target.

Just a matter of time and patience imo .... and those are two of the few things required in abundance for a trader/investor to get better of the market ...

:thumb:

 

[SwingKing]

Lupin Labs should do well in coming sessions.

Let's hope.

Tc

 

[SwingKing]

Have entered BankNifty future contract at 10043 for a target of 50-70 points. At times I like to scalp.

Tc

Exited at 10,095. Scalped around 52 points.

Tc

 

[sikandar]

Lupin Labs should do well in coming sessions.

Let's hope.

Tc

Hi raunak
Nice observation this one,how did you explore this.