iCharts Discussions

[SwingTrader]

Trading Levels for 22.05.2009

[SwingTrader]

Today's NF 5-Min chart with relevant levels and probable trades marked

Brief explanation of the probable trades on the chart:

1. Alternative Strategy Short.

2. Alternative Strategy Continuation Short

3. Regular Long

4. Alternative Strategy Continuation Long

[san77s]

ST Sir,
Alternative Strategy first given a buy signal @ 10.15 candle after a two close above LOC at 4236..
Am i right or wrong sir?

Pls. explain

Regards,
S.Saravanan.

[SwingTrader]

[sandew]

I also see the following trades, which please confirm

2A. Add short at 1205 ( 2 closes below bear level). This short hit stop-lossed-trigger at 1225 bar (piercing swing low of 1155 bar)
2B. Initiate long at 1255 bar when piercing the 1155 swing low level. (effectively cover the short of 2A plus add a long)
Please clarify for academic study
3A. would the Long of 3 get stop loss triggered if it were to hit the low of 1115 bar ( the swing low bar) ? framing question differently, does the 1115 bar low becomes the SL for the long at 3 ?

ST - your valuable answer to 3A would help us to address the extreme volatility we saw after price crossed LOC level where it became impossible to ascertain whether we hold our longs or take profits and quit or go short !

Please do advise academically as-per-book for us to comprehend the principles of this strategy.

Thanking you as always
SanDew

[sandew]

correction, at 2B plese read 1225 bar instead of 1255
thanks
sandew

[SwingTrader]

Sandew,

At 12:05 you should be capturing profits from your earlier short trade (entries #1 and possible add at #2) and not initiating new shorts so late in the trend.

Your 2B trade must be entered at 12:40 and not 12:55. At 12:35 there were two closes above bear level so you would enter a long at open of 12:40 bar.

NO, the 11:15 swing low is not used. For SL or entries only the MOST RECENT SWING HIGH/LOW matters. Swing low of 11:15 would not be used after it was breached at 11:35/11:40.

[rajamani]

hi swing trader ,

your levels are very useful.thanks for providing it daily

kindly provide the levels for ICICI BANK and DLF also


regards
rajamani

[sandew]

ST, thank you very much for yr prompt reply. Please allow and spare little time more. I have prepared a log of all the trades for May 22 - as i see them now - with sole aim of your goodself correcting the errors and logic wherever indicated.

0. go long at 10.25 at 4236. to begin Sl at 4204 (midpoint bear and loc level) TGT 4260 ( bull level).
00. At 10.30 shift SL to 4218 ( swing low level formed at 10.20). This SL triggered.

1. 11.10/11.15 go short 4219 (breach of recent swing low), to begin SL 4241 (midpoint loc and bull) tgt 4156 ( bear level).
2. 11.35 another short at 4197 ( breach of 4196 recent 11.15 swing low), to begin Sl 4241 ( midpoint loc and bull) ?? OR is to be 4222 ( loc level) ?? - ST your help needed here - tft 4156 (bear level).

Q. ST - Do we at 1140 shift SL of short 1 downwards to 4220 ? Money management says yes; but what do the chart-reading-of-this-strategy say? Pls advise from both views - money management and chart reading.

2A. Aggresive risky traders, having booked target profits of shorts 1 and 2, may go for Short 3 at 1205 at 4184 ( 2 of the last 3 bars closing below bear level) with SL 4170 (midpoint bear and loc) and tgt S! level 4156. Here, when in trade, the logic of going short the third time is he impending possibility of furthur break-down in nifty to s1 levels. This bar in confrimation of short, pierces below the recent 11.50 swing low level prompting to go short again - so a short is warranted if not at 4184 then at break of recent swing at 4179). I acknowledge this trade is for the risky traders - still, ST - please do confirm whether the chart reading is correct or not ?

2B. ST Question here - I am not certain how to place the SL for this trade done at 2A. We see the Nifty reverses soon, pushes back through 4179 (the 1150 bar swing low). ST - is 4179 the SL or rather framing the question differently, is it proper to go long (for risky traders indeed) when 1220 bar pierces through 1150 swing low of 4179. I say so, for one, there is bounce off the recent swing low formed at 12.20 and in the run up is the 12.25 bar piercing through the 4179 levels. ST - please try to advise us in detail , granting 2A short is taken by a risky trader.

3. go long at 12.40 at 4204 with sl 4171 (midpoint bear and S1) and tgt 4222 (loc). tgt achieved

4. go long at 1335 at 4236 ( 2 closes above loc) with sl 4241 (midpoint loc and bear) tgt 4260. tgt achieved.

5. This next trade is tricky and contentious, but while in the trading hours, another long is visible on the charts at 15.05. The bar of 1435 forms a swing high which we learn of after 10 minutes at 14.50. Later the 15.05 bar pierces this recent swing high of 14.50 at 4259. My request to ST please - ignoring the residual trading time left, is the piercing the recent swing high of 14.35 qualifies this subsequent bar at 15.05 and triggers another long trade here at 4259 - strictly as per the reading of the charts? Only on hind-sight do we know that this trade never made profit but was 15.05 a valid long trade at the time, albeit for the risky trader?

I look forward to your valued response.

Regards
SanDew