iCharts Discussions

[musicjunkie]

Here you Go Saikat. Coudn't calculate the points, I think you will be able to do that if necessary.
Blue lines are reversals, black lines are adds.....

MJ-

[RKM]

Hi MJ,

I am waiting for your chart of the last few days, maybe 15th or 16th onwards.

Cheers,
Makhijani

[musicjunkie]

Since iv posted each day, I'd like you to post the trades. IF wrong, no problem, all part of the learning process.
If somehow you cant post it, i'll post it in the evening today.

Regards,
MJ-

[RKM]

Hello MJ,

As I mentioned earlier, I am using Pivot/Intraday levels along with simple charts at present. I hope to try out your method soon, and am trying to understand the nuances right now.

Sorry that I won't be able to post any chart at this stage.

One thing I would like to ask you - You have been showing a preference for Aban. Is Aban still a good pick for this method now and are you getting a good number of successful trades? In that case maybe I should try this instead of Nifty Futures. Any other stock you would suggest which does not have prohibitive margins? What is your view on Educomp - that stock tends to do exactly the opposite of what you want it to do.

Cheers,
Makhijani

[musicjunkie]

LOL on educomp.

Aban is very good to trade, just that like with any trend following method you need to have alot of patiencem its sideways periods can be frustrating.
Go through the charts ad you shall be pleasantly surprised.

Currently in Nifty we are short with 2 adds.

Regards,
MJ-

[RKM]

Thanks, MJ.

Cheers,
Makhijani

[musicjunkie]

Reversed to longs in Aban,

Now nifty, Banknifty, Reliance and aban all long...

Regards,
MJ-

[Stockhunter]

[RKM]

Hi MJ,

I find that the current pivot high/low levels for NF are the same whether we take the 60Min TF or on EOD basis. The pivot high is 3520 and the pivot low is 3342.

Am I right? Also, should I consider Nifty spot values instead?

Cheers,
Makhijani

[musicjunkie]

Hi Makhijani,
This is the current trade on Nifty. When trading the 60 minflow, we are NOT bothered about previous PH/PL`s.....suppose we just reversed long we cross a PH made (say) 3 days ago when we were (previously) short, we don't do anything.
We want a PH to form after we have reversed to longs then we add, move stops etc...we are trading in the NOW, hence its called Trend following.

One more thing, 60min is to create wealth, we aren't bothered about earnings of a month or 2 months, we are in it for the big trends, like January 2008 crash was nearly 6,000 in Nifty and 4,000 pts in Oct 2008. Patience is all that is required, and alot alot of learning.

Your question, about EOD pivots is a great observations. In nifty we add 3 times, all equal adds, however if the daily pivots are broken as well, then we can bring in add 4,5 and 6.

The best Trend Comes When Weekly,Daily and 60 Are All In Alignment.

Regards,
MJ-

[RKM]

Hi MJ,

Thanks for your reply. I am going to start using this method soon and I certainly have a lot to learn. Please confirm whether my PH/PL levels are correct - your chart shows stops placed elsewhere. Also, whether I should consider NS levels instead.

Your Aban chart is very interesting. There are only three markers for stops on this one - the trend has continued longer. I'd like to know why you have placed a stop at the bottom of the WRB and not below the day's low.

I also want to know whether I should wait for a pivot break before I enter and what should be my initial stop (should it be X no. of points or should it be the nearest PH/PL with filter).

What filter do you apply for Aban?

Cheers,
Makhijani

[musicjunkie]

Great Makhijani, just be sure to use MM and start very small. Also try to delay the first trade until you have understood everything, If possible post charts here so we can discuss. Some paper trading will do good.

We trade Nifty futures hence only those charts will be seen, spot is NEVER used.
Stops I have posted is a pivot, if you cant see it then you need to pour through a few more charts to gain confidence.
Your Nfty levels are pivots yes, but we cant wait that long to reverse in the 60min trade. Please see the charts I have uplaoded.

You asked a question about stops, wrb in aban. We are short, so why will be keep stops at day's low? our stops will be kept at a pivot high to go long. Otherwise we add at PL breaks...... thats it.

Regards,
MJ-

[RKM]

Thanks, MJ.

My last question was how many points do you use as a filter for Aban?

Another question was - For initial entry, should I wait for a pivot break?

Actually, I re-read your Rules post. While discussing gaps in our favour, you have advised filters of 7 points in Scenario 1 ( Short positions in NF) and 20 points in Scenario 2 (Long positions). I couldn't understand why we need different filters when both cases are similar.

Cheers,
Makhijani

[musicjunkie]

2 things here Makhijani.

When we have a gap in our favour we add above/below that 5 min bar the filter is 7, which is the add filter.
Gaps against us we use a filter for SAR which is 20. 20 is used on gap situations for reversals.

So we are long , gap up the next day and 5min bar is RED, we reverse to shorts below that bar -20. Go through some past data, im sure you will understand what i'm saying.

Aban filter = 5
Yes we wait for pivot break and hold our trade until stops are hit, no profit booking, just holding reversing,reversing,reversing....add...add...add....Big Smile...

Regards,
MJ-

[RKM]

Thanks, MJ.

Now things are clear. But you will have to edit your Rules (Scenario 2). And, best of all, I like your closing words --- 'Big Smile'. I am sure that is what you must be having all the time. As for me, I am hoping that day will come for me too.

What would you have done today if you had been holding shorts and the market gapped up around 150 points higher??!!

Best wishes,
Makhijani