iCharts Discussions

[zhkzhk]

Hi Traders,

I recently came across this Forum. Going through it I noticed that most of the discussions are on the Indian Financial Stock Market. I am originally from India, presently living in U.S since 1979. I mostly follow and trade the U.S. market. I mainly trade on Price Action, which I call Zone Base Trading. I have been trading since 1984, started with all kinds Indicators, and my charts started looking like spaghetti. Indicators really did not help me. I finally came to the conclusion that all indicators are lagging and really do not help me in my swing trading, where I think most money can be made. I day trade US futures like S&P, Russell, and Euro. Recently I have developed an interest in the Nifty.

Let me explain my Zone Base Trading.
I would like to introduce a technique which I have known for a while, which I call "Zone Base Trading". This involves Risk Management, technical analysis which consists of price action, higher highs and lower lows, and volume analysis. These zones are essentially price zones where multiple buy/sell levels are determined. This technique is only for intermediate and advanced traders who would like to swing trade rather than day trade, in higher time frames. Traders should select these Zones on individual Risk Tolerance/Management. As far as taking profits its up to the individual risk tolerance.

As far as the US and Indian market goes, I am bearish long term with up thrust bounces along the way. Investors can short the market in these areas of the up thrust bounces.

My goal is to show stocks which have been identified in these price zones to swing trade.

I want to present a few Indian stock showing multiple buy/sell zones. I have selected certain Indian stocks to start from the BSE. Since I am not familiar with the Indian market, traders can write on the forum if they want me to analyses their stock.

Since I have the stocks in an excel format on Google Doc. I am providing the link:

https://docs.google.com/spreadsheet/ccc?key=0AsOOAWEc03LDdG9zTDF1MUZvcmF2UEFRQzNuMDkzb0E&hl=en_US#gid=0



Explanation of Zones:

* SELL ZONE: This is the price range DEPENDING ON YOUR RISK TOLERENCE you should place a sell limit on the stock, or buy a ATM / ITM put option and DELTA > 0.70 (ONLY for option traders)

** BUY ZONE: This is the price range DEPENDING ON YOUR RISK TOLERENCE you should place a buy limit on the stock, or buy a ATM / ITM call option and DELTA > 0.70 (ONLY for option traders)

*** VOLUME: When Buying or Selling the stock you should also use the volume. For example if the stock comes in the Buy/Sell zone price, and you would like to take a trade (depending on your risk tolerance) you should also check what Volume the stock is showing. I would recommend taking a trade after the market has been open for 3.5 hrs. The market is open 6.25 hrs.daily. If the volume column shows < 3.0 lakhs, you first divide 3.0 by 6.25 which daily hrs. = 0.48 Lakhs per Hr. The stock should average 0.48 Lakhs/Hr. in order to get 3.0 Lakhs for the whole day. So when you are looking for a trade around 3.5 hrs after the market open, in order to calculate the volume at that time you take 0.48 * 3.5 = 1.68 Lakhs. So when you are taking a trade around 12.45 am you should also check if the volume is around 1.68 Lakhs and not more, allowance of +/- 1%. If the volume is greater by 4% be cautious when you take the trade. This is because if you sell the stock, and more volume is coming in the stock that means that there are more buyers than sellers. Reverse the thought process for Buying.

Zarir

[zhkzhk]

Hi Vinodz,

Thanks for asking trading regarding Nifty option trading utilizing zones.

I had stopped posting any more because I found that there was no interest in my strategy.

But I can help you on the Nifty. or any stocks of interest.

Are you talking about trading nifty Futures? Or just buying calls and puts on the Nifty.

I also have a strategy where you can buy a stock and then hedge it with a put option to protect your downside.

I do not get data for Options on Nifty as yet since I am in the US. But I am trying to get a Indian broker for option data.

Regards
Zarir

[vinay28]

zhkzhk, I presume that the volume of 3 lacs that you are talking about is the previous day's volume or weekly average.

[zhkzhk]

Hi Vinay28

I have a detail description of what you are looking for in the Trading/Investing section under Technical Analysis. Then look for Zone base trading.

zhkzhk

[vinay28]

zhkzhk

I have gone through that. In fact, that time I had asked a query on volume of 3 lac, which was answered. But this query is because doubt remains unless I have missed something. e.g. unless 3 lac is a previous day's volume or weekly average, how can one apply it to the next/trading day to calculate volume at any given time, say, 12.30pm?

[opportunist]

Zarir,

You probably think that ichart members are foolish Indians who would flock to your US returned tune if you throw around a few jargons like "sell zones" and "risk management". I must tell you that you should chat on SB for a few days to see the variety and depth of trading strategies people employ to trade. What people here are curious to see is whether you are bringing some new value to the rich table of strategy that is already displayed on various posts of this website.

Personally after observing your posts for a few days I think you do not have any strategy worth discussing OR if you have lay it bare and STOP boasting about your "Edge" in trading.

Forum rules and personal etiquette stops me to use stronger words but I feel all your posts have so far been a heap of useless words.

Oppo

[amitkbaid1008]

[zhkzhk]

[sandew]

Just butting in.

To me SB has been the most dangerous Zone to be in during trading hours.

There has been only a very very few honest knowledgeable contributors, and in the pecking order I put "Speculator" on the very top. To me most others have failed in sharing a consistent system.

A true trader will rarely be at the SB, he has his own plan, a set up and goes by it. SB might sure throw up few gems of ideas but first they need to be consistent having rules of entry, exit, sl ; and also align with one's own plan and method of trade. It is this discovery for your own trading style which makes the journey interesting and at times suicidal. If one cannot follow others ; there is no need to decimate any ones style.

Let ideas flow in from all windows and might be you discover another "Speculator" somewhere. Do not throttle the writer of this or any other thread, please.

Zhk, please keep posting.

[opportunist]

[vinst]

I have only one thing to say:

we are too quick in branding one or more posters as non-genuine etc.
we should keep in mind that anyone who claims abt a method will need time to demonstrate. instantaneous results can't be given even in a casino.

let's keep patience and keep asking without taunting. if we get reply, good.
if we don't get, we don't lose anything.

[vinay28]

Don't get detered zarir. if your strategy is good, everything will fall in place

[zhkzhk]

Hi Oppo,

First let me thank every one for their kind words.

No worries Oppo. I know we all get frustrated from time to time. I had mentioned regarding my technique, some where in the post that my technique is just "one mans opinion" there are lots of good ones out there.

And Oppo you wrote “Keep it up Zarir though I still may have some queries regarding the method.”

Oppo if you have any question please ask, and will be glad to answer. Please give me some time to answer.

I finally came around this technique is because I have gone through many of the indicators, and "I" found that they did not help "ME" in my trading. Most of them were laggard, meaning after the price has already finished performing. I am not against any; I feel that they do not help me in my trading.
The Zone trading is in my opinion is kind of a projected concept. It tells you to look at the past and project the future price. I am an Edge trader, so I feel this technique gives me an “EDGE”. Others might differ.

I feel that Fibonacci projections do give future price projections and I do use them in my trading at significant highs and lows.

The zone trading also does not put a trader in which a trader can get whip sawed for different reasons. Prices do react to news, earning, and other outside circumstances. Like now with the European crisis, the market is volatile.

Zone trading is kind of swing trading, and it did help me because I did not have time to sit in front of the computer to day trade. So it depends on ones circumstances.

I think that day traders can also take advantage of this technique. Actually they can use this same technique even on a lower time frame. Can be 2, 3, 5 or even 10 minutes. And they can visually find the same zones.

I hope I am helping traders who need it.

Have a great day
Regards
Zarir

Yes I do post on Stocks - under Markets too whenever I have been asked a question.