iCharts Discussions

SwingTrader · Posted: Mon Sep 06, 2010 2:20 pm Post subject:

For NF 5581 is the next major hurdle to cross on its way to R4 (5607).

Today's a good example of what to expect when there are long consolidations. Sideways moves like the previous two trading sessions can be frustrating but congestions/consolidations inevitably lead to strong moves and these are the moves to capitalise big time (not like me....offloading everything at a convenient level Very Happy

). To be a better trader days like today have to be leveraged. Trail as long as you can...let the market force you out of the position.

SwingTrader · Posted: Mon Sep 06, 2010 4:16 pm Post subject:

Explanation for attached chart:

MACD gave a buy signal indication at market open, Long entry was initiated once a 5 min bar closed above R1 confirming the MACD buy signal. SL was placed below BULL (indicated by the orange line). SL was moved up as higher levels were achieved.

Do note that SL move from below R1 to below R2 was at my discretion as it looked like price was rolling over, I wanted to tighten the stop without waiting for NF to close above R3 (this is advisable only if the profit in existing position is significant). Same was done while SL was moved from below R2 to below R3.

Position closed just before market close (I am talking about how it should have been done....in my case, as I posted, I chucked out as price looked like rolling over at R3 Very Happy

I had some work too, so it looked like a good reason to get out anyway).

NOTE: During the move none of the MACD sell signals A/B/C/D were confirmed by price moving below iCharts level.

SwingTrader · Posted: Mon Sep 06, 2010 10:32 pm Post subject:

Hi,

I will be coming in late to office tomorrow (07.09.2010), I may not be able to post anything in the morning immediately after market open. Will try and post once I am at my desk...not sure around what time though...

Good Luck!!! thumbup1

rishu · White Belt Joined: 08 Dec 2009 Posts: 38

Dear Sir,
Thanks for guidance.
Regards,
Rishu

SwingTrader · Posted: Tue Sep 07, 2010 1:55 pm Post subject:

Hi,

Just got to my desk...pretty unremarkable day at least until now. NF is around LOC since morning.

MACD sell signal on the 10:00 AM bar (on 5 mins chart) got confirmed when NF closed below LOC on the 10:10 AM bar. I would probably have taken this trade because 89 EMA was about 20 pts away so it was a small counter-trend trade. So we are short with SL above BULL (I am not trading today as I just came to the office).

The buy signals that came after that - B & C - were not confirmed as price did not cross bull level after the signals. The buy signal in the morning - A - on 9:40 bar also was not confirmed.

SwingTrader · Posted: Tue Sep 07, 2010 2:41 pm Post subject:

on NF we have a buy signal on the 2:30 PM bar. If price closes above BULL the buy signal will get confirmed then we reverse our short and go long with SL below LOC.

SwingTrader · Posted: Tue Sep 07, 2010 3:28 pm Post subject:

Would be out of the trade now if I was trading as market close nears. Both trades today would have been losers if I would have been trading today.

What we are observing with winning & losing trades using the MACD signal + icharts levels confirmation strategy is that the trades we are getting are consistent with what we would get for any trend trading strategy. The winners would be good/large if we get trending moves that go on for a while like yesterday. If we get a range where market tries to breakout and then fail, then we have losing trades...like today.

Will continue to take trades based on this strategy if I am trading on a day or at least record the trades (if not trading) like I did today. Once we have few days stats we will know where we stand with this strategy.

The next thing I am planning to add to this strategy is to identify ranges and apply range trading strategy when we "seem to be in" a range based on few rules and switch to trend strategy once we breakout of the range. This idea has been borrowed from books by Joe Ross....especially "Trading the ross hook" & "Trading by the minute".

Stay tuned...

SwingTrader · Posted: Wed Sep 08, 2010 9:31 am Post subject:

I will be out of the office for almost the whole day today too...will post after I am back or late in the evening.

SwingTrader · Posted: Wed Sep 08, 2010 11:09 pm Post subject:

Explanation of points marked on the chart:

A : A standard icharts level signal - reversal from BEAR-R1 area/band, price reversed from BEAR and broke above 89 EMA. A straight buy with SL below BEAR. This would have been a good winning trade....but I was not trading today Crying or Very sad

B : MACD buy signal around 10:50 AM confirmed after price closed above LOC. SL below BEAR, moved to below LOC once price broke above BULL. This trade would have been a scratch trade (no profit / no loss or maybe tiny loss) if one followed trailing stops strictly. If you are like me, I would have captured profit on hint of weakness in NF as it reversed from BULL, in which case it would have been a small winner.

C : MACD sell confirmed, SL above BULL. Trade closed out just before market close. Small loser.

knrajan31 · White Belt Joined: 01 Apr 2009 Posts: 18

dear sir.

in 8/9/2010 jsw chart 5 min buy signal depicts at appx 1215 confirmation required after crossing loc at 1216.5. but before dmi confirms buy signal
at 1216. can we go long after confirmation from dmi without waiting for price confirmation .logically if dmi shows sell signal in place of buy at 1216 what is the strategy to be followed?

with regards
g.k.nagaraj

SwingTrader · Posted: Thu Sep 09, 2010 9:48 am Post subject: Re: importance of dmi

SwingTrader · Posted: Thu Sep 09, 2010 10:06 am Post subject:

NF in BULL-R1 band. The direction of breakout will determine the course for the rest of the day. A break above R1 will be bullish, a break below BULL would be slightly bearish. It could go sideways...below LOC it could get bearish.

SwingTrader · Posted: Thu Sep 09, 2010 10:49 am Post subject:

MACD sell signal on 10:15 bar, got confirmed on 10:40 bar as NF closed below BULL. Current position is short as of now with SL above R1. 89 EMA is nearby and below that is LOC. The move down can accelerate if we get below LOC and stay there for a couple of bars.

The decision to go short here is tricky because 89 EMA + LOC support. A break above BULL now can be quite bullish.

Let us see...

SwingTrader · Posted: Thu Sep 09, 2010 1:26 pm Post subject:

We have a MACD buy signal on 13:20 bar, this will get confirmed into a buy if NF closes above BULL. We will reverse the short position in this case and go long with SL above LOC.

SwingTrader · Posted: Thu Sep 09, 2010 2:21 pm Post subject:

Clarification: In my previous post I meant SL BELOW LOC and not above for the long position we currently are in (after getting stopped out as we got a reverse signal).