iCharts Discussions

[chennuru]

Bnf positional trade

I earned 5000 points Since march in BNF,

Beauty of the trading style,

Pay very less brokerage and very minimum positional trades.


Rules-

1. High is validated or conformed, when previous days low is crossed

2. Low is validated or conformed, when previous day high is crossed

3. Find the supply and demand zones

4.Draw the channel, and Middle control line( optional- for better view)

[chandrujimrc]

[chennuru]

Find the HIghs and Lows,

Conformation of high ---- when next bars cross the low of the previous bar of Hgh

Vice versa for low also

[falcon]

The following line was offered as a further explanation to the first post, on the request of one of the fellow members of the forum:

Conformation of high ---- when next bars cross the low of the previous bar of Hgh

although in the first post itself everything was explained clear as crystal -- in fact, as easy as... 1, 2, 3 and 4.

First of all, you need to realise that there are approximately 5000 points of BankNifty eagerly waiting to reach and sit in your broking/bank account. Assuming that BankNifty will undergo roughly the same amount of movement, in the next 5.5 months, that is, well before the closure of this financial year, I request fellow members to plan their income tax filings also. This is really important because on each lot of BankNifty, you are going to make Rs. 2 lakhs (yes, 5,000*40 = 2,00,000). I also assume that this is without compounding, as nothing was mentioned about compounding so far. You may have to revise your profit forecast if some clarity about compounding is brought in at a later stage. Let's try to solve the above puzzle for the sake of some ordinary mortals.

Since the word "conformation" was repeatedly used and hence cannot be construed as a typing mistake, I would collect all my courage to say that it might be "confirmation". Fellow members, please don't worry, I personally confirm to you that I fully conform to and always comply with the rules of the forum.

So, one part of the puzzle seems to have been solved. Then the real deal is when you come to the part "next bars cross...". We don't know whether "bars" was intended to be used in singular, but by mistake was typed in plural. If you have to consider it as plural, then how many bars is the next question. On the other hand, if you have to consider it as singular, then commonsense suggests that it has to be: "when next bar crosses...". By commonsense, I mean middle school English grammar, or was it elementary school English grammar? They start calculus in 8th or 10th standard these days! So, try to solve the riddle. In case you solve this riddle, then another one is waiting for you in the same sentence: the low of the previous bar of Hgh. Can we consider it as the low of the previous bar's High? If so, this riddle is of the highest order I have ever seen! If we can't consider that way, then it falls under the category of an ordinary puzzle, which anyhow needs to be solved. By the way, don't get confused, and don't waste your time in comparing the two charts posted. Two copies of the same chart are posted. Don't worry, mistakes are guaranteed to keep happening. So, at least this part of the puzzle seems to have been solved with a fair bit of confidence. Oh my God! I am getting closer to the solution!

That's enough for now. The next instalment of learning may happen after the next revelation of some more clues. Probably someone should gather enough courage to ask as rudely as "Can you explain a lot more in detail", instead of asking as politely as "Can you explain a little more in detail please". Otherwise, highly guarded holy grails can be revealed grain by grain!

Don't lose heart even if you don't understand anything that was mentioned here. Nowadays, there are a lot of videos on the net, cheaper than "dime a dozen", which will promise (please hold your breath once for me!) a 100% success rate. You can view them, and try to learn some breathtaking (I literally mean, they will take your breath away!) strategies. But I sincerely advise you to keep a few Aspirin pills ready. Who knows? A weak heart may miss a beat or two when it gets a 100% success rate in its trading! Oh, what to do with all those profits that get piled up, if your heart is not ticking? I myself keep some pills by my side, although entirely for different reasons! In narrating video after video of some "highly successful strategies", sometimes when they repeatedly say "NIPTY" for "NIFTY", I use the Aspirin to get rid of that strange, nauseating and sickening feeling in my head.

Jokes apart, in a serious vein, internet is a phenomenally significant advancement made in science in recent decades which actually touched the lives of ordinary people. A common man would never feel or comprehend the impact of such huge advances, if they were happening in fields like nuclear physics or cosmology. But I have noticed one terrible disadvantage of the internet. Every Tom, Dick and Harry can become, a kind of an author instantaneously. When they see in print (or on the monitor, rather), what they type on the keyboard, they go insane with a false feeling of achievement! Earlier all they ever wrote were their answer papers in their exams which were so poorly written, that they themselves never wanted to have another look at them though their teachers clearly showed their mistakes time and again. For such people the need to reach a printer/publisher in order to see their work in print never arose in the past until the advent of the internet use because they never had anything to say that was worth publishing. And finding a printer/publisher who was willing to publish any crap was not easy. But now, all they have to do is to type some gibberish and click the mouse. Done! Instantly they can see in print what they write! And they are thrilled beyond words!

I am really curious to know the location and the address of the factory where this kind of extraordinary geniuses are produced.

[chennuru]

Hi Mr.Falcon
Nice to listen ur views,
If you see the market with technical indicators like MACD,RSI, STOCH,FI, DI,
Then you feel that my view doesn't work, i was same like you.


Now i am following the market with price action. Not with any single indicator.

My explanation is basically to find the tops and bottoms

To define the tops and bottoms is difficult to explain , and more difficult to understand

I refer example with 5 and 2 bars. ( this can be changed based on time frame and past action of stock or index)


1. Tops----- classified by highest high of 5 days followed by break down of lowest lows of two days formed during the period of highest highs

2. Bottoms---- classified by lowest lows of 5 days followed by break out of highest high of two days formed during the period of lowest lows.

U can do this analysis with any high volume stocks or index. Then you will realize.

Sell at the top and buy at the bottom

For fine tunning, you should learn the channels and control lines, demand zones, supply zones, and types of pull backs

i cannot explain all these here

But i can refer some books here, please find the attachments,
I am reading the attachments no 1, 2, 3,4,5
but repeatedly reading the Attachments A, B, ( price behavior)

Note- Learning English hardly take some days or months.

But one life is not enough to learn the markets.

[manojkr78]

can you post live positional trades based on your strategy.....

[chennuru]

1,2,3,4 are not valid tops

5 is the valid top

[chandrujimrc]

Dear chennuru,
Thanks for your explanation. How will you fix your tsl or target after entering into the trade?

[chennuru]

Dear chandrujimrc

1, 2, 3, 4 are not valid tops,

5 is valid top

X and Y valid bottom,

TSL with previous days low, ( side ways markets)

Wait for valid top to exit long, valid low for short ( trending markets)

[chennuru]

Dear
Titan charts looks very interesting,
Head and shoulder pattern in weekly and daily charts,
near to neck line and valid bottom is not formed.

[falcon]

Hi chennuru,

Library catalogues would not really matter. If mere access to a large collection of books results in knowledge, the librarians of the world’s biggest libraries would have been awarded all the Nobel Prizes announced so far. Nobody else stands a chance. Digestion is what really matters – not the possession.

This is another flaw of the internet – an overwhelming flood of information. Unless chaff is distinguished from grain with a discerning mind, which itself takes a lot of time, particularly when there is a huge amount of information, you end up suffocating yourself. This is something like trying to quench your thirst from a fire hose – it would always be a losing battle. Even after a full tanker of water is floored, one may have to leave with his thirst unquenched. A simple tap would serve the purpose much better.

Clarity of speech reflects clarity of thought. Writing needs more clarity and precision than speaking. That’s why they say, “Writing makes an exact man.” If one can’t put something clearly in writing, it should be realised that there is every possibility that something was not understood by him clearly.

Why don’t you post one simple chart on which whatever you want to convey is clearly shown with every detail and then pick up a real time trade and follow it up to its logical conclusion? Too many incomplete charts need not always help. Opinions and suggestions for improvement, if any, might come later from the fellow members, if the method seems to be working.

About your note: Whether it takes days or months, or more – it all depends on the focus of the individual. If you are making the same mistake again in your note, even after I had pointed out “next bars cross” it is evident that you haven’t understood it yet. What really bothers me is how and whether the content in all those 181 books was properly understood -- since the language used is the same both for the books and the forum postings.

[chennuru]

Dear Falcon

Thanks,

As i stated before, i was following technical indicators , Now i don't see any technical indicator to make decision for by or sell,

when i can write something clearly in writing, to understand that, reader should have some basics,

i feel i red very few books, each book adds some value in trading,

Try to find the authors or titles of books, and read again again.

To understand chart analysis, you have to go through some books,

[chennuru]

Hi
I saw one of ur post ""MRPL seems to have started its breakout"".
I was same like u, following some indicators and trade based on that,

Later on i realized that all indicators are derived from price behavior, i started to read the charts without any indicator,

Based on my little experience, where u made big mistake, is attached with my view
You missed the accumulation and trending stages and entered in distribution stage( where big player came out with good profits)

I marked valid top, where u missed to take short,

This is the way, now at days, i trade the stocks,

[falcon]

Hi,

In that thread, I was posting some scrips on daily charts which were about to break out or break down within the next few trading sessions. It was meant for short-term trading in futures which I mentioned at the end of my first post as: Those who trade in futures for short-term gains may find this information useful. What you have presented is a long-term view on a weekly chart.

After the Bollinger squeeze, the price is likely to move considerably. Predicting which way it will move is the daunting task as I mentioned in that post. If we can predict with a reasonable and acceptable accuracy, a 5 to 10% move in futures within a week would give decent profits.

Some traders use Keltner Channel in combination with Bollinger Bands. Another possible alternative is to trade in the Martingale way to recover the losses if you get a head fake first.

[chennuru]

Hi
You are exactly right in daily charts,
But you have to check the weekly charts, if you trade with daily TF