Turtles CCI

[rajputz]

Hi rajputz,

the problem with taking narrow ranged days and waiting for a breakout is that you may be struck with a narrow ranged day. on the other hand, if you take those which broke out the previous day, chances are better that it will trend again for the day.

Yes this possibility is also there. A share rising 4-5 % previous day can surely give a breakout next day. We can look at this too.

 

[vinodkiyer]

can also breakdown by atleast 61.8% the next day, both ways you get trend, that is how I make stock selection

 

[vinodkiyer]

Hi crown, you are spot on with your observation, but I dont agree about waiting for 1st hour, becos most of the time by end of first hour markets will go flat and u may get struck.
another thing is that if maximum people are using the same indicator, then the price will go in the same direction, i.e. in intraday you go with the romans while in positional u go against the romans. You first have to decide with which method to trade and stick to it.

 

[crown]

Hi crown, you are spot on with your observation, but I dont agree about waiting for 1st hour, becos most of the time by end of first hour markets will go flat and u may get struck.
another thing is that if maximum people are using the same indicator, then the price will go in the same direction, i.e. in intraday you go with the romans while in positional u go against the romans. You first have to decide with which method to trade and stick to it.

thanks bhai
I will amend my thinking accordingly
thanks again bhai

 

[rajputz]

Intraday and positional trading are totally different; and using the resistance/support levels based upon EOD chart for intraday trading is totally useless because of two factors;

first high level of volatility (one never knows where the market will open next day, and this point you have mentioned in your past post) and second factor is the importance of fresh signal (which has taken place now) against the old signal that has taken place yesterday. There are very high chances that the script which was weak yesterday, showing reasonable weakness with all indicators and oscillators, can easily turn strong now and if I am trying to short the script on the basis of previous day chart (without considering the present condition), I am sure to get loss (which I am getting regularly). Therefore, while attempting intraday trades (which I suppose are for marginal gains per script per trade i.e. around 1% or so), the focus must be on what is happening right now in stead of what support and resistance levels etc. were formed in yesterday's chart.

Thanks bhai

Calculating the support and resistance over EOD chart helps you alot. It gives you some what bigger picture where the market can go. If your EOD analysis predicts a fall from the resistance level, then you will be going for a short trade in intraday only. As a buy trade will be counter to the trend. And we want to go with the trend. Simmilarly on a EOD chart taking support, you would like to trade the breakouts to the buy side only. We trade with the trend. We cannot use EOD charts support and level so widely over intraday charts, but we can use pivot levels based on previous days OHLC value to find Daily pivot, Various support and resistance levels. You can know in advance where the support and resistance can come over intraday fluctuations.

and regarding the the weak and strong Scrip. There are always chances that weak scrip can gain strength. Tatasteel was weak on Friday, and performed as an outperformer on monday. Same was the case with DLF. But still charts which are weak remain weak. You can look at the charts of BPCL, Hindpetro, Aban, Suzlon. Having a broader picture in mind can help. Yesterday i considered a sell for tatasteel at 472 levels, but as soon as it breked the previous days high, i knew the trend has changed. Also the signal on my EOD chart has changed frm trend continuation to trend reversal. So just keep a little broader view of the market, so that you dont trade counter to the trend. Whenever i trade intraday, i switch between 5 min, hourly and daily chart once in a while to know where trend is on a bigger time frame.

For intraday, trades should not be initiated during the first hour. I was doing the same thing. I think that I should let the market show what it is doing even if I miss some good up or down moves. Let the candles form and let the indicators start taking their shapes to allow some guessing or analysing. I have also observed that the intraday trade opportunities are best in the middle hour of the market.

Like vinod mentioned. The stock which has breaked out previous day, can give the trades in intial hours also. All you want is opportunity. Time does not matter. Some times price opens and start to drive in one direction without any downmove. You can hit some good trades. Like in my first example of live trade, Aban breaked in the first five minutes and gave a shoot of 1.15%. After that it remained in continuous downtrend the whole day. If the conditions are meeting with the system then you can enter at any market hours.

The system of trading used by maximum people is confirm to give loss simply
because only minimum people having major trading capital are actually getting the profit as they have the resources to know which trading systems are commonly used. Therefore, we have to derive at a system which is not known to maximum to maximum of traders.

And even if this system is used by masses, it is less prone to failure. Cuase it is not fully indicator based system. It is general understanding of price going up only after breaking the ranges. and that always happen. It happened in past, will happen in future. Price goes up or down this way only.

 

[crown]

Calculating the support and resistance over EOD chart helps you alot. It gives you some what bigger picture where the market can go. If your EOD analysis predicts a fall from the resistance level, then you will be going for a short trade in intraday only. As a buy trade will be counter to the trend. And we want to go with the trend. Simmilarly on a EOD chart taking support, you would like to trade the breakouts to the buy side only. We trade with the trend. We cannot use EOD charts support and level so widely over intraday charts, but we can use pivot levels based on previous days OHLC value to find Daily pivot, Various support and resistance levels. You can know in advance where the support and resistance can come over intraday fluctuations.

and regarding the the weak and strong Scrip. There are always chances that weak scrip can gain strength. Tatasteel was weak on Friday, and performed as an outperformer on monday. Same was the case with DLF. But still charts which are weak remain weak. You can look at the charts of BPCL, Hindpetro, Aban, Suzlon. Having a broader picture in mind can help. Yesterday i considered a sell for tatasteel at 472 levels, but as soon as it breked the previous days high, i knew the trend has changed. Also the signal on my EOD chart has changed frm trend continuation to trend reversal. So just keep a little broader view of the market, so that you dont trade counter to the trend. Whenever i trade intraday, i switch between 5 min, hourly and daily chart once in a while to know where trend is on a bigger time frame.



Like vinod mentioned. The stock which has breaked out previous day, can give the trades in intial hours also. All you want is opportunity. Time does not matter. Some times price opens and start to drive in one direction without any downmove. You can hit some good trades. Like in my first example of live trade, Aban breaked in the first five minutes and gave a shoot of 1.15%. After that it remained in continuous downtrend the whole day. If the conditions are meeting with the system then you can enter at any market hours.



And even if this system is used by masses, it is less prone to failure. Cuase it is not fully indicator based system. It is general understanding of price going up only after breaking the ranges. and that always happen. It happened in past, will happen in future. Price goes up or down this way only.

Thanks bhai
it was not intended to comment on your system of turtle CCI
just trying to understand the markets are they are
therefore, sometime I do made foolish comments,
thanks again

 

[crown]

The conclusion

EOD charts sup and res levels do carry importance, esp when these levels are touched/crossed in intraday charts. Therefore, the strategy should be flexible enough to change the trade accordingly and immediately.

It does not make diff which system one uses, what make the difference is how much one understands the system from its basic understanding.

Time does have some importance but the main focus should be on implementation of the system effectively.

abhi theek hai kya rajput bhai and other bhai logs?

 

[crown]

today I will try to understand around 2-3 indicators including woodies CCI, which I think I still need to dig more because it is not only the CCI which this system is using. It also uses moving averages and other indicators.

 

[vinodkiyer]

just to put my point, yesterday sesagoa was 9 odd % up, yesterday's OI was down, daily volatality was 3.99. so i decided to short today upon open, which got executed at 381.2at 090002 am exited at 377.8 at 0903.50.

yesterday by the same method, bought sterlite at 090007 am at 176.25 and sold at 181.55 at 090103 am.

all within few minutes, its just that u must do carefull homework and more than 95% of the time u have made your share.

 

[crown]

while trying to understand the CCI and some other indicators; I just got a very valid point which I would like to share wid all especially rajput bhai, vsoma bhai and vinod bhai.

while analysing an indicator for its implementation and functionality, it is of utmost importance that one is very very well aware of its formula and the concept of the original author of the formula while he was writing it. because then only I will be able to use the indicator with its full functionality which will directly add to my performance in trading.