iCharts Discussions

dcs2247 · White Belt Joined: 17 Mar 2010 Posts: 13

Hi Swing Trader,

Good to see that you are also posting your failed trades (loss making trades), which is very rare from traders point of view. As always traders hide the loss making trades under the carpet.

Its also shows your mental strength, which for me is very imp thing in day trading, more imp than system & strategies.

I like the way you followed your system. Just to highlight one thing if you can see candle patterns also along with your system, some losses can be avoided.

As in chart you posted there were certain candlestick patterns indicating trend reversal.

Regards,

SwingTrader · Posted: Mon Jul 19, 2010 9:24 am Post subject:

SwingTrader · Posted: Mon Jul 19, 2010 9:27 am Post subject:

19.07.2010 AM

NF opened in BEAR-S1 area which is a strong support area. I am bullish as long as S1 is not broken.

SwingTrader · Posted: Mon Jul 19, 2010 2:37 pm Post subject:

19.07.2010 Afternoon

Two trades I have done today were no brainers:

1. Reversal to long from BEAR-S1 area (marked point A on the chart, entry was 5381.85, exited at 5405 and entered short on a breakdown after price hit BULL level earlier.

2. Reversal to short from BULL-R1 area (marked point B), exited the short trade at 5396.25 as my trailing stop got hit after breakdown below LOC and then a strong move up.

These are my high confidence trades...meaning...my position size is slightly higher when trading these setups (reversals from the bear-s1 / bull-r1 bands) when compared to other setups.

Have not entered any trades after that as the move seems to be sideways as indicated by DMI/ADX and moving averages also flattening out. The bias is slightly up.

rvg · White Belt Joined: 31 Oct 2006 Posts: 279

ST Sir.. thanks for the examples..

Can you please share what timeframe you are using and what is the period of data loaded

SwingTrader · Posted: Mon Jul 19, 2010 7:48 pm Post subject:

SwingTrader · Posted: Tue Jul 20, 2010 2:31 pm Post subject:

20.07.2010

Just did one trade today. Will not be trading for the rest of the day as I am tied up with some other work.

The single trade was my high confidence trade - reversal from BULL-R1 band (marked point A on the chart). Price opened in the bull-r1 band and showed clear weakness almost immediately. It broke down below the bull level, consolidated below it for 1-2 bars and I was into the trade short as that consolidation was breaking. Got a fill at 5401.75. My initial SL was just above the day's high. For such trades I usually place the initial SL above the nearest extreme if I am trading against the trend (this trade was a counter-trend trade) as I do not want to give the trade too much room. If it was with the trend then I would have placed the SL above R1 to give it more room.

I thought about exiting the trade when price was getting supported again and again by the 89 EMA, but I did not. Continued with my trade.....point B made things clearer as price broke down after hitting the bull level. This would have been by entry point too if I had not initiated the trade earlier. After this trailed the stop and exited the trade as it hit the trailing stop (point D). Got filled at 5388.35.

*** Point C was another potential entry point for a short (if not already in a trade) as price broke below 89 EMA, consolidated below it and broke down further)

Not a huge trade but for my high confidence trades the position size is always more (compared to the trades based on other setups) so it turned out just fine for me.

SwingTrader · Posted: Tue Jul 20, 2010 3:50 pm Post subject:

Just came back to my desk and looked at the chart....missed a very good trade after I left for a meeting. Would have taken the short after price turned back down from 89 EMA (point A) and broke below LOC (point B). Missed it because of my meeting....hard luck!!! Very Happy

SwingTrader · Posted: Wed Jul 21, 2010 9:11 am Post subject:

21.07.2010 - Market Open

NF opened in the BULL-R1 band. Now to which side it breaks from here will decide the near term direction....I am watching the band like a hawk Very Happy

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

Hi ST sir,
If NF faces resistance at R1 would it be a good point to short or you would find shorting below Bull more comfortable.

Regards,
Dilesh

SwingTrader · Posted: Wed Jul 21, 2010 11:28 am Post subject:

SwingTrader · Posted: Wed Jul 21, 2010 11:53 am Post subject:

More examples of trades based on reversals from the bands:

This chart is for HDFCBANK cash for today.

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

ST Sir, Thanks very much for your reply. Highly appreciate your Strong Support!

cheers,
Dilesh

Very Happy

SwingTrader · Posted: Wed Jul 21, 2010 12:00 pm Post subject:

Currently long in NF at 5398.60 a bit after breakout above R1 with SL a bit below bull level. Since the move is very strong will aggressively move the stop closer as the price moves so as to capture as much of the move as possible.

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

ST Sir, still stop below Bull or that since price is below R1, it would be better to exit and reenter above R1 again