iCharts Discussions

SwingTrader · Posted: Fri Jul 23, 2010 3:06 pm Post subject:

Sorry...I had t step out of the office urgently for some work, just returned. Did a good short trade in NF (21 pts these days is good Very Happy

). Had entered the short at 5458.05 (few mins after I suggested the short in the morning) - point A on the chart, exited at 5436.05 as it hit 89 EMA and found support - point B. The reason for exit was that I had to leave the office for some urgent work, the profit would have been few points less if I was not leaving (would have hit my trailing stop little later)....anyway it was a not bad trade.

To answer Dilesh's question that he asked below...the buy signal would have been on a break above BEAR - point C - (price had already hit the bear-s1 area and also had found support at 89 EMA) with a SL below S1 as we were in line with the trend (SL would have been below BEAR if we were taking the counter-trend trade like the short trade in the morning). This would have been a tiny trade as trailing SL would have hit after it went above LOC and then came back below it on the way back to bear level.

SwingTrader · Posted: Fri Jul 23, 2010 3:25 pm Post subject: EVERONN

EVERONN example:

Hit BULL-R1 at market open and broke down immediately. It was a short anytime after that (probably around point A). The reason I posted this example was to illustrate the failure of a stock to reverse from BEAR-S1 (point B). In this case there was no reversal, it just consolidated in BEAR-S1 area without breaking out above BEAR and just continued to fall further. The next possible short entry was around point C when the tested back the bear-s1 band.

SwingTrader · Posted: Fri Jul 23, 2010 3:42 pm Post subject:

Advise for those who are trying to use the ideas from these examples:

I will make it clear here that there is no 80-90% hit rate here (forget about 100%) Very Happy

It is about getting probabilities on your side. This will happen when you start sticking to a fixed set of trading rules. You have to follow your fixed set of trading rules everyday for every trade. If this starts to get boring then you are probably on the right track, if it feels too exciting (little is ok) then you are on the wrong track.

These ideas here are for those who can follow fixed set of rules for every trade every day. Discipline is the key. We take lots of small trades (small profits / losses) so as to get into those big trades that come eventually. This does not happen everyday but happens often enough. One HAS to take these small trades as one cannot predict which one of those is the big one. Trying to predict a waste of time.

Most of the rules mentioned here are objective...no ifs & buts. Few are subjective, these come with experience. One has to start with the fixed objective rules....the rest will fall into place over time with experience.

Good luck!!!

mohan.g · White Belt Joined: 07 Jul 2010 Posts: 11

Hello sir, i am new person watch your post, it's very usefull from day trade and one more qustion how to calucate R1, S1, BULL, BEAR, LOC, and how to apply. Exclamation

thank you .....

SwingTrader · Posted: Mon Jul 26, 2010 9:23 am Post subject:

SwingTrader · Posted: Mon Jul 26, 2010 9:26 am Post subject:

NF Open

NF opened in the BULL-R1 band and broke down below it. It is currently consolidating right at 89 EMA, a breakdown from here can result in significant downside but a rally from here will probably result in NF hitting resistance in the bull-r1 band again resulting is some sideways movement.

More later...

SwingTrader · Posted: Mon Jul 26, 2010 2:06 pm Post subject:

NF is effectively in a 20 pts range since morning after it brokedown below BEAR. Did two scratch trades (little or no profit) in NF - one short and one long - reversal from bull-r1 and the other reversal from bear-s1. Stocks though are giving good trades. GAIL, HDIL, IFCI & FINANTECH are two examples.

As of 02:00 PM now it has dropped to S1 a breakdown from here can result in significant downside and a reversal from here can take NF initially to bull-r1 band and maybe above that based on how it reacts with the bull-r1 band.

Key EMAs are flat indicating the move can be on either side...bias at the moment seems to be on the downside, but have to wait and watch....

optimist · White Belt Joined: 06 May 2010 Posts: 18

ST,

In one word , AWESOME....

Never seen such a simple and straight Intra strategy...

I feel today that I got the money back for my subscription Very Happy

Thanks for this education ...

SwingTrader · Posted: Mon Jul 26, 2010 4:00 pm Post subject:

SwingTrader · Posted: Mon Jul 26, 2010 4:10 pm Post subject:

Only two NF trades today both had marginal profit/loss (trades marked A & B - short & long respectively). At point B the short trade was reversed to long as price bounced off BEAR level, but it did not go the distance...was expecting it to hit bull-s1 band. It did indicate weakness but I did not reverse again at point C...just exited the trade as I was not sure if it would go the distance after breaking BEAR-S1 (which is what happened...it just stopped at S1).

Usually this is the story with NF most of the time....lots of scratch trades and then few big trades.

The story with stocks is always different. You get big moves with stocks. Those who want good consistent returns should look at stocks apart from NF. Look at SBIN today after a breakdown of BEAR-S1 level, it went beyond S5 level. The other examples also I posted earlier in the day gave good returns. Of course, I agree...I posted those too late, those were not calls. They were just examples....there are much better moves in stocks on most days so don't ignore those.

Kumthekar · White Belt Joined: 25 Mar 2009 Posts: 8

Hello ST,

These examples have been a great help to change the perspective towards a simpler and more reliable way to day trading!

HDIL & DLF short trades worked great as per Bull-R1 band resistance logic.

In these examples and even before you have mentioned about having a short list of stocks/futures ready with you.

Would you please explain the method to generate this list and pick up the right stock/future from the list for day trading for the day?

Thanks,
Aniruddha

optimist · White Belt Joined: 06 May 2010 Posts: 18

SwingTrader · Posted: Mon Jul 26, 2010 9:22 pm Post subject:

SwingTrader · Posted: Mon Jul 26, 2010 9:36 pm Post subject:

Kumthekar · White Belt Joined: 25 Mar 2009 Posts: 8

Sounds good. Thanks a lot!

For futures, is there a way to generate average daily volume or is average volume (Screener EOD) for the corresponding stock a good proxy?

When possible, a button for iChart levels or the dashboard (for say top 25 futures) indicating relative price position w.r.t. iChart levels will be a great help.

Thanks again!