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Trading Levels for 21.05.2009 |
SwingTrader
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Joined: 11 Aug 2006
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Location: Hyderabad, India
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Post: #1  Posted: Wed May 20, 2009 10:49 pm Post subject: Trading Levels for 21.05.2009 |
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Trading Levels for 21.05.2009
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Srikanth Kurdukar
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SwingTrader
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Joined: 11 Aug 2006
Posts: 2903
Location: Hyderabad, India
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| Post: #2 Posted: Thu May 21, 2009 3:41 pm Post subject: Followup |
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Today's NF 5-min chart with relevant levels marked
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Srikanth Kurdukar
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kishy99
White Belt
Joined: 10 Feb 2009
Posts: 13
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| Post: #3 Posted: Thu May 21, 2009 3:50 pm Post subject: Booking Profits |
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Dear ST Sir,
1) Today the first short trade was triggered at the open of the 10:45 bar. However, this trade did not reach the bear level and hit stop loss at the 12:15 bar. In such a scenario where is it advisable to take profits if one is short at 10:45.  .
2) Also the 13:35 bar closed below the LOC then there were 3 bars closing above the LOC. Then the 13:55 bar closed well below the LOC. In such a scenario can we take a trade at the close of the 13:55 bar (as there was already a close below the LOC 3 bars prior) or do the closes have to be consecutive. |
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SwingTrader
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Joined: 11 Aug 2006
Posts: 2903
Location: Hyderabad, India
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| Post: #4 Posted: Thu May 21, 2009 4:50 pm Post subject: Re: Booking Profits |
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| kishy99 wrote: | Dear ST Sir,
1) Today the first short trade was triggered at the open of the 10:45 bar. However, this trade did not reach the bear level and hit stop loss at the 12:15 bar. In such a scenario where is it advisable to take profits if one is short at 10:45. .
2) Also the 13:35 bar closed below the LOC then there were 3 bars closing above the LOC. Then the 13:55 bar closed well below the LOC. In such a scenario can we take a trade at the close of the 13:55 bar (as there was already a close below the LOC 3 bars prior) or do the closes have to be consecutive. |
Please look at the chart below marked with numbers. I have explanation below:
About your morning's short trade, a loss there was inevitable anyway you look at it. If you would have followed the conventional rules as I mentioned in my trading guidelines then the loss would have been bigger. Loss would have been lesser if you would have used the "alternative strategy" signals to flip the trade. The subsequent short trade in the afternoon would have made up for this loss though.
1. A regular short trade. The conventional SL was too far about 35 pts away (marked 1.3 on the chart). I have mentioned in my guidelines that how far the SL is will be pointer for you to decide if you really want to take the trade. Anyway if you would have taken the trade, your other SL options where 1.2 marked on the chart which was the recent swing high (which was above LOC) and later 1.1 which was another swing high above LOC that formed later. A close above a swing high and above LOC would be a key pointer to cut your losses. In any case a loss in this was inevitable but the loss could have been reduced to 12-15 pts instead of 35 pts.
If you have used these levels for a while you should start thinking about your own strategy to cut losses and capture profits. My rules to initiate the trade or cut losses or capture profits may not be great, you have to start thinking and innovate and turn this into your own unique strategy. I assure you there are many better ways to trade my levels and before I post those strategies in the future I want you to think and innovate first. The two strategies I posted and very very basic ones that you can use to trade my levels.
2. This is the alternative strategy's long trade. It would have been a scratch trade as you would have to exit the trade at 2.1.
3. This is the alternative strategy's short trade. 3.1 & 3.2 are continuation trades.
A regular short trade would be around the level 4265 after the two closes below LOC. This answers you second question....NO the two closes do not have to be consecutive.
Do understand that you have to think for yourself and come up with your own strategies for initiating the trades, cut losses and capture profits. Your strategy could turn out to be better than mine 
Hope this helps. Good Luck!!!
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Srikanth Kurdukar
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kishy99
White Belt
Joined: 10 Feb 2009
Posts: 13
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| Post: #5 Posted: Thu May 21, 2009 6:29 pm Post subject: Regarding todays levels |
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Thanks ST Sir for the detailed explanation.
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