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[systrader]

THINGS NOT EXPECTED FROM DAY TRADERS

[Premothi]

[sambhaji_t]

[chandrujimrc]

Dear systrader,

I read the post some times earlier in which the TGT finding formulla was given which is below and TGT finding formulla works try this Exceptions are there but only few.

TARGET FORMULA FOR BUY POSITION

BUY TGT = { OPEN + (OPEN PRICE * 0.75 %)}


TARGET FORMULA FOR SELL POSITION

SELL TGT= {OPEN-(OPEN PRICE * 0.75)}

NOTE:- THIS METHOD ONLY USE INTRADAY

Thanks
@SYSTRADER

Last edited by systrader on 15 Feb 2014 12:54; edited 1 time in total


Pl explain in deatail.

[saumya12]

[pkholla]

[sambhaji_t]

PKHOLLA Sir,

My confusion is - for current 3 days the DMA line remains straight so which should be point of intersection considered for entry/exit. Please show on chart.

Regards

[pkholla]

[meherp]

[systrader]

[systrader]

[systrader]

Moving averages
Moving averages help us to first define the trend and second, to recognize changes in the trend. That's it. There is nothing else that they are good for. Any thing else is just a waste of time.

I won't be getting into the gory details about how they are constructed. There are about a zillion websites that will explain the mathematical make-up of them. I'll let you do that on your own one day when you are extremely bored out of your mind! But all you really have to know is that a moving average line is just the average price of a stock over time. That's it.

The two moving averages

I use two moving averages: the 10 period simple moving average (SMA) and the 30 period exponential moving average (EMA). I like to use a slower one and a faster one. Why? Because when the faster one (10) crosses over the slower one (30), it will often signal a trend change.


Here are the rules:

Focus on long positions only when the 10 SMA is above the 30 EMA. Focus on short positions only when the 10 SMA is below the 30 EMA. It doesn't get any simpler than that and it will ALWAYS keep you on the right side of the trend!

Note that moving averages only work well when a stock is trending - not when they are in a trading range. When a stock (or the market itself) becomes "sloppy" then you can ignore moving averages - they won't work!

Here are the important things to remember (for long positions - reverse for short positions.):

The 10 SMA must be above the 30 EMA.
There must be plenty of space in between the moving averages.
Both moving averages must be sloping upward.
The 200 period moving average

The 200 SMA is used to separate bull territory from bear territory. Studies have shown that by focusing on long positions above this line and short positions below this line can give you a slight edge.

You should add this moving averages to all of your charts in all time frames. Yes. weekly charts, daily charts, and intra-day (15 min, 60 min) charts.

The 200 SMA is the most important moving average to have on a stock chart. You will be surprised at how many times a stock will reverse in this area.

Use this to your advantage!

Also, when writing scans for stocks, you can use this as an additional filter to find potential long setups that are above this line and potential short setups that are below this line.

Support and resistance?

Contrary to popular belief, stocks do not find support or run into resistance on moving averages. Many times you will hear traders say, "Hey, look at this stock! It bounced off of the 50 day moving average!"

Wrong!

Why would a stock suddenly bounce off of a line that some trader put on a stock chart? It wouldn't. A stock will only bounce (if you want to call it that) off of significant price levels that occurred in the past - not a line on a chart.

Stocks will reverse (up or down) at price levels that are in close proximity to popular moving averages but they do not reverse at the line itself.

So, suppose you are looking at a chart and you see the stock pulling back to, let's say, the 200 period moving average. Look at the price levels on the chart that proved to be significant support or resistance areas in the past.

Those are the areas where the stock will likely reverse.

[systrader]

Displaced Moving Average (DMA)

The displaced moving average, DMA, study allows you to shift or center the moving average on the price chart. You specify the length for one or two moving averages. You must then select the number of intervals to displace the moving average(s). That value may be positive or negative. A negative value displaces the moving average to the left of the price bars; it lags the moving average(s). Conversely, a positive value leads the price bars. You may overlay the moving average(s) on the bar chart or display them separately. This study can be used for a variety of different purposes. You may use the study to de-trend the data, for cycle estimation, for phasing and as a simple moving average trading system. Refer to Kaufman's book and Murphy's book for additional details on using the displaced moving average study.

As the study displays on your monitor, the moving averages are simply displaced - moved to the right or left over the price chart. A negative displacement value lags the moving average(s) which can be used to center the moving average on the price chart. For example, a 20 period moving average with a -10 displacement centers the moving average on the price chart.

Remember, the mathematics of a moving average force it to always follow or lag the actual price data. By centering the moving average, you have a more accurate picture of the moving average relative to the current price on the chart.

By using this technique, you can quickly see how the displaced moving average study could be quite useful in locating and estimating cycles. For example, if the expected cycle is 28 periods, you specify a moving average length of 28. The displacement value is then one-half of that value or -14. Try it. What happens to the moving average if you change the displacement value to 14 rather than -14?

You can, of course, use the moving average crossover buy/sell signals. Another approach is to use closing prices with the moving average(s), or you might even use the displaced moving average as an estimate of support or resistance areas on the price chart. Please refer to the moving average study for the suggested trading rules. As you can see, there are a variety of ways to use this study. It only requires a small amount of experimentation on your part.

Parameters:
Period1 (4) - the number of bars, or period, used for the first moving average.
Displacement1 (9) - the number of intervals to displace the first moving average. The value may be positive or negative. A negative value displaces the moving average to the left of the price bars, while a positive value leads the price bars.
Period2 (18 ) - the number of bars, or period, used for the second moving average,
Displacement2 (14) - the number of intervals to displace the second moving average. The value may be positive or negative. A negative value displaces the moving average to the left of the price bars, while a positive value leads the price bars.
Computation

The formula to calculate a simple moving average is repeated below. The formula is as follows:
MAt = (P1 +... + Pn) / n
Mat is the moving average for the current period.
Pn is the price for the nth interval.
n is the number of periods.
FuturesDaily computes the average of the past n intervals and plots the number of periods specified by the displacement value. A negative displacement value lags the moving average(s); it moves the average(s) to the left. A positive displacement value leads the moving average(s); it shifts the moving average(s) to the right. The best way to understand this study is to use it and experiment with it before you attempt to trade it.

[systrader]

TATA MOTOR Sell@391.25 with TGT@385

[systrader]

Day trading is all about getting in a rhythm. Over time you will begin to identify day trading setups that consistently work for your trading style.

Whether you have a high win ratio or the average winning profit runs much greater than your losers, you just need to come out ahead.

Your trading style is what makes your market experience unique from everyone else’s. This is where your background, fears, and beliefs all converge in how you view the market. No matter how good the system or the day trading setups placed right before your eyes, if the system is counter to how you view the world, you will not make money.

One of the most popular trading systems of all-times is the Turtle Trading system. The Turtles, as they have been affectionately called, were able to make 100s of millions of dollars trading commodities. That’s right folks, 100s of millions of dollars, but did you know that some of the trainees in the program were let go. Even though these folks received the same training as the other Turtles, some could not grasp the concept of allowing their profits to run. It’s never about the system; it’s about you the trader.

In this article we will cover 6 classic day trading setups you can use to trade the markets. When I say classic, it means these setups would have worked in the 1980s and will continue to work well into the 2030s.

As you study each day trading setup, it’s important to remember you must find the one that matches your trading style the most, in order to have success.

Thanks
@SYSTRADER