iCharts Discussions

[SwingTrader]

Trading Levels for 28.05.2009

USE LEVELS WITH CARE AS IT IS EXPIRY DAY, MOVES CAN BE ERRATIC LIKE YESTERDAY!!!

[SwingTrader]

Erratic day as expected. Morning was normal, after 2:00 it was crazy!!!

I am posting the chart with probably trades. On expiry days I do not trade in the afternoon after 1:00 or so but I am still marking the trades. It is healthy to see how bad days turn out so one knows what sorts of risks are involved in trading a particular method.

Explanation about the probable trades marked on the chart below:

1. Regular long trade, two closes above R1 after mkt opened below R1. SL is btw LOC & R1 - about 28 pts way. Once price hit R2, SL is moved to just below R1. Once price closes above R2, SL is moved to midway btw R2 & R1.

2. Regular short trade as there are two closes below R2 (previously bar closed above R2). SL is 34 pts away, this might be a factor in deciding if the trade should be taken or not. As price hits R1, SL is moved to just above R2. SL hit as price rallies hard above R2.

3. Regular long trade as there are two closes above R2 level (previously price was below R1). SL at 4310. Target was far away so one would have to capture & lock-in profits using other methods until (if) the target would hit. Price rallied 26 pts after entry and two hours after entry a short got triggered during a wild price swing exiting this trade.

4. Regular short on two closes below R2 level. SL is 4355.55. SL again is far away - more than 30 pts - this might be a factor in deciding if the trade should be taken or not. Price immediately rallied and went very close to the SL but did not hit, I reckon one would have liquidated the position much earlier looking at the monster move. In any case this was a bad trade.

I will post few ideas later this weekend on how to better capture/lock-in profits and also ideas on how indicators can be combined to make the levels work better.

[san77s]

Sir,
1st Long Trade stop loss moved from between R2&R1. It was hit by 11.25 candle. But 2nd trade initiated before this s/l was hit..
Am i right sir?

Regards,
S.Saravanan