iCharts Discussions

[SwingTrader]

Trading Levels for 27.05.2009

[SwingTrader]

NIFTY FUTURES further resistance levels, if needed.

R6 : 4382

R7 : 4409

[SwingTrader]

Sorry for the confusion I created in shoutbox, I had placed my R3 line wrong on the chart....placed it at 4208 instead of 4218.

Here are the clarifications (numbers below correspond with the numbered candles on the chart):

1. 1st close above R3

2. 1st close below R3 (after a close above R3)

3. 2nd close below R3 triggering a short on the next bar

4. Short at open with SL around 4230 (midway between R3 & R4). This bar close above R3

5. 2nd close above R3 giving a long signal which is to be ignored as we are short. but this long signal makes our short trade SL reversible so we are to reverse the trade and go long if our short trade's SL of 4230 gets hit

6. This bar hit SL so we reverse and go long immediately

[SwingTrader]

What a day...typical of days around expiry. Below is the explanation for the probable trades today. Please post any questions you might have here.

Numbered explanation here corresponds to the numbers on the chart:

1. Regular short trade. Price had just closed above R3 level followed by two closes below R3 triggering short. SL is 4230 (shown on the chart as pink line). SL got hit after 5 bars.

2. Regular short triggered after two closes below R3 level (alternative strategy short also triggered at the same time). SL again is 4230 (midway btw R3 & R4). Price moved down about 22-23 pts from here before reversing. Alternative strategy triggered in the meantime making the SL reversible.

3. The green arrow is a bit off, it should be pointing to the candle that hits the SL for trade #2. This triggers long trade as SL was reversible. The SL for this long is 4197 (the SL is a bit far - 33 pts - users may decide to take or skip the trade based on this).

4. SL is moved to 4230 (midway btw R3 & R4) once price closes above R4. Price reverses immediately and triggers a regular short on two closes below R4 making the current SL of 4230 reversible.

5. Price hits 4230 the reversible SL for trade #3 and we go short at 4230 with SL at 4273 - midway btw R4 & R5 (users may want to take or skip this trade based on the fact that SL is far - 43 pts away).

6. Price hits R3 so we move SL to just above R4 to 4242 (if price had closed below R4 then SL would be moved midway btw R3 and R4).

After that an alternative strategy long triggers making this SL reversible.

7. Price breaks above R4 and hitting our reversible SL so we go long at 4242. Position closed just before mkt close.

Please note that trading guidelines clearly defines the rules for initial SL and trailing SL.

For capturing profits also experiment with a 13 bar MA trailing stop or 5 or 8 bar EMA of high/low (on live charts, not possible with jcharts).

PLEASE TAKE CARE AROUND EXPIRY DAYS AND WATCHOUT FOR WHIPSAWS LIKE TODAY.

[GAJRAJ]

Sir
To day was stop loss day only the last trade was fruitfull but by that time the loss protection was dominent than to take trade ......

[san77s]

ST Sir,
Please explain about the 13 bar MA trailing stop or 5 or 8 bar EMA of high/low. If possible with a chart...

Regards,
S.Saravanan