iCharts Discussions

[SwingTrader]

I am out major part of my long position around R1....no patience as the position is heavy will trail the rest...

[SwingTrader]

Out of the NF position...not a bad trade today...the long one. Short one in the morning was a tiny loser.

[Kumthekar]

Hello ST,

I was testing MACD - iChart level system on Tata Motors - 1m today. Relative position of 34 & 89 emas suggested bearishness and price action tried to breach Bull level with 10.15 candle almost testing R1.

At the 10.40 candle, there was MACD sell signal (Point A), price moved downwards from Bull level as well as both the emas. With all these three things together, this was probably the first shorting point. Later, point B was probably the second shorting point. The excellent bear run there after ended with a hammer exactly near S3 level !!

Later, at point C, there was MACD buy signal. I think the confirmation came in at Point D when price action crossed R2. However price action there after wasn't favorable.

Q#1: Was it a whipsaw at point D or something wrong with my reading as per the system?

Q#2: It was a great trending day today. However on a sideways day, one just keeps watching price action monitoring spurious buy / sell signals. Would you suggest some additional trend following system that will lessen monitoring of buy sell signals especially on sideways price action?

Thanks,
aniruddha

[svkum]

GOOD ANALYSIS AND OBSERVATION

S V KUMTHEKAR

[SwingTrader]

Kumthekar,

You are right about point A, that was the first shorting point. You have got the right idea about the levels....they are to be used as supporting tools with your main analysis being the other stuff like position of price with respect to key EMAs, the trend of EMAs itself, etc.

Point B is also a good short entry point or a good point to add up to your existing short position.

Point D is where your trading experience and taking decisions based on experience comes into the picture. This is probably what I am unable to convey properly. I would rarely take the trade at point D because - 1. The distance from point D to 89 EMA is not much. AT 89 EMA there is going to be good amount of resistance so there could be a pullback or sideways move there. 2. There may not be enough time for the move to be profitable enough before market close (taking the probable resistance at EMAs into consideration).

Answers to your questions:

Q1 : No...you were right about point D, it was a valid entry point but it probably was not that good an entry point for a long trade as point A or B were for shorts. The reason was : 1. It was against the trend 2. There was not much time left in the day after point D for a good move to take place.

Look for ideas on anticipating reversals (like the one at R3) earlier. Look for indicators / other tools that identify exhaustion etc. If one can do this with a decent probability then one can get better counter trend trades.

Q2: Yes, as I said in one of my yesterday's posts, this system works very fine on trending days. Most trend trading methods do. The key is to build another trading method that would work better in trading ranges (and not work that well in trends). This new method with the existing trend trading method will work better together. The tricky thing would be to make them work together as the trades will overlap...so how to manage trades entered in ranges that get converted to trend trades and vice versa is the key. But it can be done.

Will post more ideas on this in the near future...

Good work and very good ideas...keep them coming!!!

[Kumthekar]

SVKum Sir,

Namaskar! Thanks for your kind words and appreciation! I am not active in SB but some of your advices and thoughts there have been really helpful! I look forward to meeting you some day.

ST Sir,

Thanks for an elaborate response and words of encouragement!

First, allow me to appreciate couple of things. Your TA course at Pune ( year ago) gave a definite direction to my efforts. However your guidance in this forum, reliability of iChart levels, level bandsand 89 - 34 ema support/resistances have brought in a further renewed confidence.

Yeah, Usually I have been trying to follow theory of going with the trend and if I was trading yesterday, I would have entered at point B and got stopped out at point D if not earlier. Yes, along with 89, Bear-S1 was just above it. However on several recent occasions (e.g. 26th, 27th & 31st Aug) Tata Motors offered nice opportunity to trades in both directions (probably because of proximity to expiry). A simple 5 ema - 13 sma system with iChart levels support could give wonderful trades! Yes, the first legs started earlier in the day though. On revisiting those trades, I realize that MACD-ichartlevel system could have given similar great trades.

As per your previous advice I have been maintaining a short list of favorite liquid - volatile scrips to trade. However in spite of that and the nice tool of iChart levels dashboard, a whole lot of time goes in switching the scrips and finally having the required focus on trending scrip to trade. Alternate system of trading ranges is excellent idea (especially the one which gets you into a trend trade) and will certainly be helpful in narrowing down this focus and still cut down trade less days!

Eagerly awaiting your guidance on range trading system. In the meanwhile some direction on trend exhaustion indicators would be interesting!

Thanks a lot and hoping you'll always get time for mentoring in this forum!!

Regards,
Aniruddha

[rishu]

Dear ST Sir,
Please suggest me a good combination of crossover of ema s on 60 min. chart for positional trading. At present I am using 5 and 34.
Regards,
Rishu

[ravin_06]

Dear ST Sir,

Wishing you & all Ichartiance Happy Ganesh Chaturthi !!!

Sir , is it possibale *ICHARTS INDICATOR* in live charts as any others indicator ? it will very useful in day trading as Icharts Lvl works SUPERB !!!

Thanks in advance.

[SwingTrader]

Phew!!! This morning's data feed issue at iCharts really sapped my energy....everybody in the office including I was tied up for the first 40 mins answering phone & live support calls!!!

Big gap up in NF. Look for sideways to down move until the key 34 & 89 EMAs catchup with price.

[SwingTrader]

[SwingTrader]

NF above R3. If it can stay above R3 then the trend can continue. Too extended at the moment but in a strong trend it can stay like this for the rest of the day.

[SwingTrader]

NF - 5725 is an important resistance a break above that will take NF to R4 - 5751. A reversal down from 5725 can take NF to R3 which is key support (34 EMA is also over there) a break below R3 can be bearish.

[SwingTrader]

5778 is a resistance on the way to R5 (5793). A break down below R4 will result in NF testing 34 EMA & R3 below it.

[ravin_06]

[SwingTrader]

Ravin_06,

I will think about it.