iCharts Discussions

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Remember tmrw is 8th. Smile

SwingTrader · Posted: Sat Nov 10, 2012 6:05 pm Post subject:

My 5600-5800 call bull spread is in about 7% profit (profit on funds locked into the trade). The profit was up as high as 43% on 7th Nov Very Happy

I am testing breadth cycle trades or else I would have been out of the trade on 7th once profit went above 30% or so. For my usual short term option trades my profit target is around 25-30% but would gladly take even 15% if I am not comfortable with the position. For my short-term options trading my aim is to make 8-10% monthly consistently. When there are windfall profit trades like the current one I usually am out of these with the big profit as these can create a good profit cushion to absorb multiple losing trades. Anyway...the idea here is for me to test breadth cycles and that is what I will continue to do.

Short term breadth continues to go up but medium term breadth is poised to start its cycle down. I am closely monitoring this together with NF price as I will be moving with the breadth cycle. I do not want to trade against it too much. If NF breaks down from here and breadth cycle starts going down I will get into a bearish trade. I think next week will be very interesting...

Gemini · White Belt Joined: 28 Apr 2009 Posts: 166

Dear ST,

I eagerly await yours posts in this as well as Market Sentiment thread. Thanks for sharing "professional" way of trading. It is very interesting to know how important consistency is in this activity.

Please keep sharing your views / actions and enriching us. Wish you and team and all ichartians "Happy Diwali".

SwingTrader · Posted: Sat Nov 10, 2012 6:39 pm Post subject:

saumya12 · Brown Belt Joined: 21 Dec 2011 Posts: 1509

Dear ST
Thanks for your breadth charts

SwingTrader · Posted: Mon Nov 12, 2012 11:23 am Post subject:

SwingTrader · Posted: Thu Nov 15, 2012 9:05 am Post subject:

The medium term breadth seems to have started to roll down. I may convert my position later today to get in line with the down cycle. It would depend on the price action today. Immediate upside now probable only on break of upside resistances around 12th & 9th Nov highs.

SwingTrader · Posted: Thu Nov 15, 2012 7:36 pm Post subject:

Continuing to hold the 5600-5800 bull call spread, currently down Rs. 1300 per lot. I will hold until the 31st Oct lows break as I need price confirmation to go short. Market breadth continues to roll down. Medium term breadth now starting to go down fast indicating broad weakness entering the market. Short term breadth beginning to roll down. So a break below the 31st Oct lows would be a sufficient price confirmation for me.

The probabilities look something like this. I am assuming a down move and going with the breadth (after price confirmation) but I am keeping the broad probable bullish scenario in mind too and will be prepared to reverse. The bullish scenario will play out if medium term breadth reverses midway (this will happen only on a very strong upmove). The other likely bullish scenario is the normal one where medium term breadth hits bottom below -80% and turns up. This would be a strong bullish indication if we do not go down too much along with medium term breadth. I will be watching out for this....

The idea of all this is to lose as less as possible while trying to align with the broad trend and eventually get on the major move in whichever direction it is.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Just a thought, ST. Is it possible to use this (or even merge if possible) with one or two leading indicators?

SwingTrader · Posted: Thu Nov 15, 2012 10:12 pm Post subject:

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Fib is fine ST but I was thinking of any oscillator(s) e.g. rsi. My intent was to see whether one can ensure timely entry (or corrective action), as ideal as possible.

apka · Black Belt Joined: 13 Dec 2011 Posts: 6137

RSI and MACD combo would be nice

SwingTrader · Posted: Fri Nov 16, 2012 9:11 am Post subject:

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

yes ST. I just thought of it yesterday because I feel cash buying has started.