iCharts Discussions

[SwingTrader]

Trading Levels for 29.05.2009

SORRY, I AM POSTING ONLY NIFTY FUTURES LEVELS FOR 29.05.2009

R5 4614.95
R4 4526.00
R3 4495.20
R2 4437.05
R1 4416.05
BULL 4382.10
LOC 4337.60
BEAR 4293.15
S1 4259.15
S2 4238.15
S3 4180.00
S4 4149.20
S5 4060.25

[SwingTrader]

Today's 5-min NF chart with relevant levels & probable trades marked

1. Alternative strategy long as 11:00 bar closed above the swing high of 10:40 bar. Long at open of 11:05 bar. SL at 4360...do note that SL was quite far away. 2nd preference of SL is 4380 (little below bull level - the key level) but the risk of SL getting hit is high.

2. Regular long as two bars closed above the bull level. Long at open of 11:10 bar. SL at 4360...comments about SL above apply in this case too.

3. There was some confusion here at this point where a regular short was triggered. After price closed above R2, two bars closed below R2, the second bar was an up bar that close just short of R2.

Two important things to note here:

A. I usually do not take new trades in the opp direction of the current trade until my current SL or trailing SL is hit.

B. If I still had to take the his particular short trade, I would still have watched for one or two more bars to see if there would be a follow through to the downside as the trend was particular strong in NF. Reliance was stronger indicating the chance of a major downside move was not that great.

DO NOTE THAT ONE CANNOT TRADE THESE LEVELS LIKE A MECHANICAL TRADING SYSTEM. THAT IS NOT POSSIBLE. THAT IS WHY I INSIST THAT ONE NEEDS TO BLEND THESE LEVELS INTO THEIR OWN TRADING SYSTEM/METHOD. COMBINING OTHER TREND BASED INDICATORS AND/OR OSCILLATORS COULD MAKE SIGNIFICANT DIFFERENCE AND WOULD GREATLY HELP IN THE DECISION MAKING PROCESS, ESPECIALLY DURING SUCH CONFLICTING/CONFUSING SIGNALS.

Profit taking is yet to be discussed by me. If you see on the chart, I have not moved the trailing SL up after R2 levels. I will try and post something this weekend about it. I will also try and post few examples of combining technical indicators to help in the decision making process during trading using these levels.

[SwingTrader]

The earlier chart I posted was what I did during my trading (in which I bend the rules a bit based on my judgement). One user in shoubox followed the rules to the book so he took a short at the open of 10:30 bar. This was fine as the user went with the rules. I was, on the otherhand waiting for a breakout or breakdown from that level.

The short entry was at about 4380 with SL at about 4400. The SL would have hit at 11:05 and a long would have triggered on the next bar.

I am highlighting that trade in the chart below:

[HARSHAD]

4495 was there in levels given by u .
4382 broken and my 4200 put shrinked rapidly
swingtrader keep rocking bye.