iCharts Discussions

[SwingTrader]

Trading Levels for 12.06.2009

R5 4784.80
R4 4739.80
R3 4724.20
R2 4694.80
R1 4684.15
BULL 4667.00
LOC 4644.50
BEAR 4622.00
S1 4604.80
S2 4594.15
S3 4564.75
S4 4549.15
S5 4504.15

[dilesh]

Dear Swing Trader,
Thank you for your unique levels for Nifty which are of great help to me everyday.
I think I made a mistake in today's trade by taking a long position at 4622 at 12:55 with SL at 4580.
Actually it seems that as per your main strategy there were no longs to be initiated after 12:05 bar. So as per your strategy there would be only a last Trailing stop at 4635 till the end.
Your reply can clarify my doubt.

Thanks,
Dilesh

[SwingTrader]

Dilesh,

You followed the strategy correctly but do look at my recent thread where I have posted techniques to avoid exactly such whipsaws. Actually, I was never going to post any complete strategies to use with my levels but since I posted the "regular" trades startegy & alternative strategy to help people use the levels, I now am compelled to post a near complete strategy (at least in terms of entries & exists). For this reason I have posted a way to avoid too many whipsaws and thus reduce risk. Please go through it - it is a separate thread in the forum (at the top of topic list), this will help you avoid trades like the 12:55 long.

I am posting the followup in the next few minutes that will highlight such trades that were avoided today.

Thanks for the kind words, I am glad you find my levels useful.

Regards,

[SwingTrader]

Excellent trading day today! Signals were clear cut, such days are rare

The following numbered explanations are for the numbered locations on the chart:

1. There was a major confluence (confluence of a level + 34EMA) at LOC. Price broke away from the confluence upward so a long woud be initiated. As suggested - one will have to wait for a clear price break away from the confluence to initiate trade.

2. Another major confluence at bull level. Short would be initiated as price broke down away from the confluence.

3. Minor confluence (confluence of a level + 13EMA). As 13EMA is below 34EMA, only look for continuation short trades here, so only a breakdown from this confluence is tradable (continuation short trade). If the price breaks upward from a minor confluence the objective would only be the 34EMA or the nearest level on the way up, so profit expectation is low.

4. Minor confluence, look for continuation short trades only.

5. Minor confluence, look for continuation short trades only. Please note that price initially broke upward from the confluence but as hit resistance at 34EMA and turned down.

NOTE: SLs for all probable trades mentioned are just above the level broken or as per the regular trades strategy. SLs are trailed along as per the regular trades strategy.

Also note that I have not pointed few of the counter trend trades so as not to clutter the charts. In any case the profit potential for such trades is minimal on such trend days.

The PURPLE COLOURED ARROWS on the chart indicate the regular long trades avoided due to the EMA filters.

[dilesh]

Dear SwingTrader,
Many thanks for the prompt reply for my querry and also for your complete follow-up post with chart. This is absolutely amazing. I am sure no other charting service / Technical analyst has done this before!

I highly appreciate your kindness in explaining the complete strategy so clearly. Since you are an experienced trader, it is great to learn these imp. things from you.

Thanks & regards,
Dilesh