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SEE HOW TRAPING IS DONE BY INSTITUTIONS BY GAP UPLEARN HOW TRAPING IS DONE BY INSTITUTIONS BY OPENING GAP UP AND DOWN WITH YESTERDAY PLANING TO TRADE. 1. IN THE FIRST POINT OF YESTERDAY PLANING SECTION , I SHARED THAT TILL PRICE DO NOT BREACH GREEN TRENDLINE BNF IS IN IMPULSE WAVE. SO IT OPENED GAP UP. SEE IN PINK CIRCLE COMPLETE MOVE IS TRAPING OF BULLS. WHY I AM SAYING THIS TRY TO UNDERSTAND THE LOGIC. IN MY EXPERIENCE WHEN PRICE GETS REJECTION FROM POWERFUL ZONE AS YOU CAN SEE YESTERDAY CANDLE SHOWING BIG WICK IN FIG. IS USUALLY BREACHED BY GAP UP OPENING. INFACT REJECTION CANDLE WAS THE PONIT WHERE ZIG-ZAG THREE WAVE PATTERN WAS ABOUT TO COMPLETE NOT SHOWN IN FIG .IT IS IN LOWER TIME FRAME OF 15 MIN. THE CLEAR ENTRY OF BEARS WERE SEEN AT ZONE NOW TO TEST THE STRENGTH OF BEARS , BULLS OPENED IT GAP UP .IF BEARS ARE REALLY STRONG THEN AT SOME POINT ,THEY WILL NOT LET BULLS TO DRIVE THE PRICE. ON THE CONTRARY IF REJECTION CANDLE IN PINK CIRCLE YESTERDAY IS STRONG BEARS THEN PRICE WILL NOT MOVE UP SAME HAPPENED ONLY FIRST CANDLE IS BULLISH AFTER THAT TWO CANDLES ARE IN DECISIVE SHOWING LACK OF BULLS INTREST. BNF SPEND ALMOST TWO HRS IN SMALL RANGE . AND 4TH CANDLE IS BIG BEAR CANDLE. TILL 4TH CANDLE I WAITED TO TAKE POSITION SO I GOT THIS OPPURTUNITY IN 5TH CANDLE. IT WAS SMALL BULLISH CANDLE TESTING THE STRENGTH OF BULLS WHICH FIZZLE OUT THERE I TOOK SHORT AND BOOKED AT UPPER END OF RED ZONE. CIRCLED IN WHITE . YOU CAN SEE THE LONG WICK NOT ME EVEN MANY TRADERS BOOKED THEIR SHORTS.DAY TRADING SHOULD BE DONE LIKE THIS APPROACH. ALWAYS ENTER IN CONFRIM MOVE. ONLY ONE CONFRIMED TRADE MARKET GAVE HERE. I DID NOT CARRY ANY POSITION YESTERDAY BECAUSE I WAS CLEAR, MARKET CAN TRAP ME BY GAP UP LET IT HAPPEN THEN I WILL DECIDE. PLANING FOR NEXT TRADING SESSION. 1. I WAS BEARISH FOR THIS DAY THATS WHY GAVE YOU BOTH STRUCTURE OF RANGE BOUND TRADE. IF YOU SEE TODAYS STRUCTURE CAREFULLY YOU WILL FIND ONLY ONE CANDLE TRAVELLED UP IN PINK CLERCLE WHERE AS FOUR BEARISH CANDLES TRAVELLED MORE THAN BULLISH CANDLE. SO I WAS RIGHT AS BEARISH FOR THIS DAY.NOW GREEN TREND LINE IS STILL INTACT BUT STRUCTURE IS CHANGED TO RANGE BOUND. THE INPORTANCE OF TRENDLINE IS VANISHED.NOW WHAT INMPORTANT IS THE RANGE IN BLUE COLOR LINES . IF PRICE CROSSES UPPER END OF THIS RANGE AND DO NOT COME BACK IN 30 MINS THEN RANGE BOUND TRADE WILL FINISH AND UP TREND IS RESUMED. SAME IS TRUE FOR LOWER END OF BLUE ZONE. 2. IT IS ALWAYS DIFFICULT TO TRADE RANGE BOUND TRADE SO NO DIRECTION FOR THEM. ONE THING REMEMBER ONE HAS TO BOOK PR AS SOON AS POSSIBLE. BNF CAN SPEND COMPLETE WHOLE DAY IN THIS RANGE.I ALWAYS KEEP ALL CONDITIONS OPEN IN MY MIND , SO ACT ACCORDINGLY WITH BUYING SELLING SETUP. NEW COMERS SAY BEAUTIUL ANALYSIS BUT DID NOT UNDERSTAND. AS THEY DO NOT KNOW STOCK LANGAUGE. THEY LIKE DRAWINGS IN FIG. SO LEARN FIRST ONLY THEN BE ABLE TO UNDERSTAND. 3. WHITE COLOR MOVE IS EXPECTED TO FOLLOW. REST MARKET WILL DECIDE. YOGESH VATS
NSE:BANKNIFTY
by yvatsji
9
CREATING DEPTH IN ANALYSIS IS A WIN-WIN SITUATION SEE HOW?HOW I TRADED IN BNF TODAY WITH YESTERDAY PLANING \ 1. AS YESTERDAY I TOLD YOU DID NOT CARRY ANY POSITION IN EITHER SIDES . THE OPENING OF MARKET GIVES THIS ANSWER WHY? YOU ALL KNOW IN MORNING SGX NITY WAS ALMOST 65 PTS UP INSPITE OF THAT BNF OPENED 331PTS DOWN FROM PREVOIUS DAY HIGH .I WAS EXPECTING SUCH THING IN PRICE STRUCTURE THAT IS WHY DID NOT CARRY. TO PROVE MY POINT I GAVE YOU RED COLOR SMALL LINE AND CLEARLY MENTIONED WITH GRREN TREND LINE. THAT IF GREEN TREND LINE IS BROKEN AND PRICE DO NOT RECOVER IN FIRST 15 MIN THEN TREND WILL CHANGE. RED LINE IS BREACHED AND PRICE DO NOT RECOVER IN 30 MINS THEN GET READY TO SEE RANGE BOUND TRADE. SEE PRICE OPENED GAP DOWN AND RECOVERED IN FIRST 5 MIN MARKED IN PINK CIRCLE. A RED COLOR ARROW WAS SHOWN TO RED COLOR ZONE AND TOLD YOU IF THESE CONDITION WERE SATISFIED THEN UPPER BAND OF RED ZONE WAS PLACE WHERE ALL POSITIONS SHOULD BE SQUARE OFF. YOU CAN CHECK AGAIN YESTERDAY POST. SEE EXACT WHITE CIRCLE CANDLE TOUCHED UPPERBAND AND PRICE GOT BIG REJECTION. EVERYDAY CHECK MY PREVIOUS POSTS WHATEVER IS MANIFESTED ONE DAY IN ADVANCE AS MY PLANING TO TRADE NEXT DAY SAME HAPPENS. THIS IS WHAT THE DEPTH OF ANALYISIS WHICH I WOULD LIKE ALL STRUGGLING TRADERS TO LEARN FROM MY POSTS. 2. NOW COME TO TRADING SEE WHOLE DAY STUCTURE WAS LITTLE SCARY SO AFTER THE WAIT OF 4 CANDLES WHEN 5 TH CANDLE TOOK SUPPORT ON TREND LINE I GOT CONFIDENT THAT A MOVE WILL COME. THERE I TOOK MY FIRST POSITION AFTER SUCH LONG WAIT AND BOOKED NEAR UPPER BAND OF RED ZONE INFACT GIVEN TWO WEEKS AGO. YOU CAN CONFIRM FROM MY PREVIOUS POSTS OF THAT PRRIOD. YOU ALL HAVE NOTICED ZONES I PROVIDE WORK FANTASTICALLY IN TRADING EVERY DAY. PLAN FOR NEXT DAY TRADING 1. TODAY ALSO DID NOT CARRY ANY POSITIONS. BNF IS IN IMPULSIVE WAVE SHOWED YOU YESTERDAY. UNTILL AND UNLESS TRENDLINE IS TAKEN OUT, MEANS CAN BREACH BUT SHOULD RECOVER IN 15 MINS TILL THEN THIS WAVE IS INTACT. CAN SEE NEW HIGH . ON THE CONTRARY PRICE DO NOT RECOVER THEN TREND WILL CHANGE TO RANGE BOUND TRADE. 2. FOR RANGE BOUND TRADE ,RANGE IS ALREADY SHOWN. IT IS VERY TRICKY TO TRADE IN RANGE BOUND MARKET .SO I WILL WAIT FOR PRICE TO COME NEAR BLUE TREND LINE THERE I WILL FIND LONG SETUP FOR THE TARGET OF UPPER RANGE LOWER BAND OF RED ZONE.TWO STRUCTURES SHOWED IN FIG BNF WILL FOLLOW ANY OF TWO. LET THE TRADE CONIRM THE STRUCTURE THEN FIND THAT SIDE ENTRY WITH SL. YOU HAVE NOTICED TODAY WHEN RED COLOR ARROW DIRECTION GOT CONFRIMED ONLY THEN I TOOK LONG AFTER LONG WAIT. REMEMBER TO CREATE DEPTH IN ANALYIS IS 24/7 PROCESS NEEDS DEDICATION ,HARD WORK AND PATIENCE. ROME WAS NOT BUILD IN ONE DAY. REST MARKET WILL DECIDE IT IS SUPREME . BUT I LIKE TO MAINTAIN MY STRIKE RATE. YOGESH VATS
NSE:BANKNIFTYShort
by yvatsji
4
UNDERSTANDING TRADING LANGUAGE IS KEY TO SUCESS SEE HOW?HOW I TRADED WITH YESTERDAY PLAN SHARED ONE DAY ADVANCE. 1. AS I DISCLOSED YESTERDAY CARRIED LONGS. SO HOW MARKET REACTED TOADY ? INFACT IT OPENED WITH GAP ABOVE DOTTED GREEN LINE ALMOST 450 PTS UP. SINCE THE PRICE WAS UP FROM DOTTED GREEN LINE I WAITED TO SEE WHETHER THIS WOULD ACT AS SUPPORT OR NOT. FEW MINUTES LATER I FOUND PRICE BREACHED IT WITHOUT DELAY BOOKED MY POSITIONS. REASON IS PRETTY CLEAR WITHOUT SUPPORT, PRICE WILL NOT MOVE UP. EVERY DAY I SHARE MY PLANING FOR NEXT DAY AND HOW I REACT WITH MOVEMENT OF MARKET WITH LOGICS SOTHAT STRUGGLING TRADERS CAN LEARN FROM ACTUAL TRADING PSYCHOLOGY. 2. THERE IS PINK CIRCLE WHICH INDICATES MARKET SPENT THREE HRS ABOVE THE WHITE ZONE WHICH EARLIER ACTED AS RESISTANCE NOW ACTING AS SUPPORT. THIS GIVES ME CONFIDENCE TO GO LONG. AFTER WAIT OF THREE HRS 4TH CANDLE TOOK EXACT SUPPORT OF GREEN DOTTED LINE I TOOK MY SECOND LONG WITH SL OF 2ND CANDLE LOW.AND BOOKED AT 6TH CANDLE . AS YOU CAN SEE IT IS NOT BULLISH CANDLE RATHER INDECISIVE TRAPING BOTH SIDES. IN DAY TRADING MARKET USUALLY PROVIDES 1 TO 3 CHANCES FOR TRADING .I OBSERVED THIS IN LAST 14 YEARS. SO THAT WAS THE END OF TODAY TRADING .BNF FOLLOWED RED STRUCTURE SO I FOLLOWED SAME. TRADING HAS A LANGUAGE WHICH PEOPLE DO NOT TRY TO UNDERSTAND AS IT REQUIRES LOT OF TIME ,HARD WORK AND DEDICATION WITH PATIENCE . PLAN FOR 29-4-20 1. TO DAY I DID NOT CARRY ANY POSITIONS. IN RED COLOR TRENDLINE BNF IS MOVING IN IMPULSIVE WAVE. TILL THEN GREEN COLOR TREND LINE IS NOT BREACHED PRICE WILL MIOVE UP. I SHOWED TWO STRUCTURES IN WHITE COLOR FOR CORRECTION. AFTER BREACHING TREND LINE PRICE DO NOT COME BACK IN 15 MIN THEN CAN TAKE ANY OF TWO STRUCTURES. ALL LONGS SHOULD BE SQUARED OFF. CORRECTIVE STRUCTURES MEANS RANGE BOUND TRADES LET BNF MAKE LOWER RANGE THEN DECIDE DIRECTION. IN CORRECTIVE PHASE MARKET TAKE BACK ALL EARNED IN IMPULSE WITH COMPOUND INTREST .SO NEEDS GOOD EXPERTIES TO TRADE THEM. 2. A RED COLOR SMALL LINE IS FOR TWO HRS TRADING IN FIRST TWO HRS IT IS BREACHED AND PRICE DO NOT COME BACK IN 30 MINS.THEN TREND CHANGES TO RANGE BOUND. IF MARKET OPENS DOWN AND BELOW RED SMALL LINE AND DO NOT RECOVER IN 30 MINS THEN TREND CHANGES TO RANGE BOIND. BLUE COLOR LINE IS THE LAST LIMIT OF RANGE BOUND TRADES IF TAKEN OUT THEN DOWN TREND WILL START. SO I HAVE THESE SITUATIONS IN MY MIND I WILL ACT ACCORDINGLY. 3. FOR UP MOVE RED COLOR ZONE IS SECOND TARGET TO COVER LONGS. FIRST IS GREEN COLOR CHANNEL UPPER BAND. REST MARKET WILL DECIDE. YOGESH VATS
NSE:BANKNIFTYLong
by yvatsji
1
PERFECTLY UNDERSTOOD MOVE ON FRIDAY TOADY FRUITUL RESULT!!HOW I FACED MARKET TODAY ON PREVIOUS DAY MANIFESTATION OF MARKET MOVE BEFORE IT HAPPENED. 1. ON FRIDAY EVENING I DISCLOSED IN MY POST THAT I CARRIED MY POSITIONS IN LONG SIDE. YOU ALL KNOW I CARRY ANY POSITIONS, I OPEN IN FRONT OF YOU . SOTHAT YOU CAN AUTHENTICATE MY STATEMENTS WITH THE REACTION OF MARKET NEXT DAY. 2. WHEN BNF OPENED GAP UP NEAR THE END OF LOWER ZONE , I BOOKED MY POSITION IN FIRST TEN MINUTES. SINCE I WORK IN OPTIONS SO I DO NOT WANT TO LOOSE PREMIUM. AS YOU ALL KNOW IT DECREASES VERY FAST IN VOLATILE MARKET. WHATEVER REASONS I SHARE WITH YOU KEEP THAT IN MIND FOR YOUR TRADING. 3. SEE THE WHITE COLOR ZONE GIVEN LAST WEEK, HOW IT WORKS EVERY DAY. I CIRCLED IN PINK. ON THRUSDAY IT SPENT ALMOST THREE HRS AT UPPER END OF ZONE. DESPITE HAVING GOOD MOMENTUM COULD NOT BE TAKEN OUT. THERE IS DIFFRENCE BETWEEN TAKEN OUT AND BREACHED. TECHNICALLY YOU ALL HAVE TO UNDERSTAND IT. NOW ON FRIDAY LOWER END OF THE ZONE ACTED AS RESISTANCE. EVEN PRICE COULD NOT BREACHED IT. THIRD DAY MONDAY SPENT ALMOST FIVE HRS BUT COULD NOT BE TAKEN OUT. SEE THE ACCURACY OF ZONE GIVEN FEW DAYS BACK WHEN THIS MOVE WAS NOT STARTED. THIS IS THE SKILL TRADER SHOULD KNOW HOW TO CALCULATE THIS IN YOUR ANALYSIS. TODAY ALSO I CARRIED LONGS. LET'S SEE MARKET BEHAVE TOMMOROW. 4. YOU MUST HAVE NOTICED THAT TODAY BNF FOLLOWED HALF PART OF GREEN STRUCTURE I SHOWN IN PREVIOUS POST. REST WILL BE COMPLETED TOMMOROW. TRADING PLAN FOR 28-4-20 1. TWO STRUCTURES HAVE BEEN GIVEN IN FIG. ONE RED AND OTHER WHITE. IF GAP UP OPEN THEN RED WILL PREVAIL . ON OTHER HAND IF GAP DOWN THEN WHITE WILL WORK. 2. BLUE IS THE SENTIMENTS CHANGING LINE , IF BREACHED AND DOESNOT RECOVER IN 10 MINS THEN LONG SHOULD BE SQUARED OFF. ONE SHIOULD WAIT PRICE SHOULD COME NEAR GREEN LINE OF CHANNEL . IF TAKE SUPPORT AND MAKE SUPPORTIVE CANDLES THEN LONG CAN BE INITIATED . ON BREAHING OF GREEN CHANNEL DOWN SENTIMENTS WILL CHANGE TO DOWN SIDE. THEN I WILL FIND DOWN SETUP. AS TOLD SEVERAL TIMES TRADING IS THE GAME OF CHANGING SENTIMENTS. SO ONE SHOULD ALWAYS KEEP THIS IN MIND WHILE TRADING. IN NEAR FUTURE HOW BNF WILL REACT THAT I HAVE ALREADY SHARED IN YESTERDAY POST. THOSE MISSED CAN SEE SUBLE ANALYSIS .REST MARKET WILL DECIDE. YOGESH VATS
NSE:BANKNIFTYLong
by yvatsji
2
MANIESTED THE MOVE OF BNF FOR COMING DAYS FOLLOW IT !!I SHARE MY TRADING PLAN PRIOR ONE DAY OF TRADING SESSION WITH HIGH PROBABLITIES OF MANIFESTATION IN SAME DIRECTION. TODAY ALSO TRIED TO SEE THE MOVE OF BANK NITY IN ADVANCE FOR COMING DAYS WITH NEAR SUPPORT AND RESISTANCE . GENERALLY I DO NOT SHARE THIS BECAUSE IT IS TOO SUBTLE TO UNDERSTAND . PEOPLE ARE MORE INTRESTED ONLY IN DIRECTION AND TARGET RATHER THEN TO UNDERSTAND PSYCHOLOGY OF INSTITUTIONS, DSI, FSI. WITHOUT UNDERSTANDING OF PREVAILING PHASE OF MARKET ONE CANNOT TIME ONE'S TRADE. TRADING IS THE GAME OF PATIENCE , DIRECTION & TIMING. IN LONGER PERSPECTIVE MARKET IS IN ACCUMULATION PHASE IN MEDIUM IT IS IN RE-DISTRIBUTION PHASE, WHERE SELLERS ARE BALANCING MARKET BY CREATING SELL ORDERS TO FILL THEIR WARE HOUSES. WHEN THEY WILL FINISH ALL BUYING IN MARKET AT THAT PHASE , A NEW DOWN RALLY WILL START. INFACT THEY ARE FULFILLING TWO MOTIVES. AT HIGH THEY ARE SELLING AND FRUSTRATING BUYERS TO KEEP THEM IN RANRE BOUND TRADES. A POINT WILL REACH WHEN THEY WILL TEST THE DEMAND AND THEN START NEW PHASE OF SELLING. THIS IS HALF PROCESS OF COMPLETE CYCLE. RIGHT NOW HOW MARKET WILL BEHAVE IN FUTURE I SHOWED IN WAVE STRUCTURES . SEE CAREFULLY. I NEVER CLAIM I UNDERSTOOD MARKET COMPLETELY . IT IS FAR BEYOND MY LITTLE KNOWLEDGE. BUT I TRY TO MAINTAIN MY STRIKE RATE IN FORM OF DIRECTION AND TIMING. THAT I HAVE BEEN SHOWING FOR LAST ONE AND HALF MONTH. REST MARKET WILL DECIDE. yogesh vats
NSE:BANKNIFTYLong
by yvatsji
1
DAY (3-Phase) TRADINGI normally divide my intraday trading in to three phases. It not only helps me to stay out of unnecessary risk but also to book profits at right moments. I don't say that the stock does not go higher after I book profit but most of the time it protects my profits before the market takes it back. The three phases I am talking about are: Opening-Continuation Phase Mid-Trap phase End-Decisive phase Opening-Continuation Phase In this phase, I look for continuation of the previous trend. Suppose a stock has been trending higher but pulls back in the very first candle of the day. I would wait for the sellers to get exhausted before buying near the lows. In the morning, relatively smaller time frames do help to take correct entries. So this phase is to take entries. This phase starts at 9:15 and ends at 11:00 Most of the time I do take entries by 9:30 and kill the trades at 10:00-11:00 because stocks print day highs by this time. Mid-Trap phase This phase is silent, where most of the traders who made some money in the morning give it back to the market. There is lot of fuming and fretting in this phase. Traders take trades out of boredom or have guilt of not taking profits. Eighty percent stops are hit in this phase. Most of the low volume trading happens in this phase. I personally prefer to look for fake moves to fool the newbies. Once again, I don't say that I am always right. I just look for small scalps. This phase begins after 11:00 and ends at 1:00-2:00 End-Decisive phase I call this decisive phase because many times the final direction of the trend is decided in this phase. This phase is killing. Why I say so? Let's say a stock is in strong uptrend today. At the beginning of this phase you will notice a sharp dip which will wash out weak buyers. Once the weak hands are out stock zooms back to make new highs. This one starts near 2:00 and ends at 3:30 I hope it makes sense to most who like to trade for real. Do like and comment if you feel like. Regards Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
15
What is day trading ? Day Trading BasicsDay Trading If you are reading this article you may have already know about the exciting financial and personal rewards of day trading. You are curious about the fascinating tales of great monetary rewards and excited by the prospect of working from home. But you may also be aware of the disappointing story about people losing huge amount. What is Day Trading Exactly? In brief, day trading refers to transactions performed on financial securities within a time-restricted period of one trading day on the market. Put most plainly, it is the buying and selling of securities, which for the purposes of simplicity in the demonstration of this article, we will focus exclusively on stocks (but know that there are a variety of trading options, currencies, and futures) limited only to the course of one trading day so that no open positions are held overnight. Risk, Reward, Temperament and Time (1) How would I feel if I lost money for multiple days in a row? How would I handle this occurrence? (2) Am I able to accept that despite hard work, diligent research, and focused attention, I may still lose money? (3) Am I willing to engage with volatile markets day by day while maintaining a rational, long-term perceptive? (4) For the purposes of paying bills, debt, and supporting my living, do i require predictable income stream that is paid to me in intervals? (5) Does the possibility of great gain with great risk energize me? This risk is real. There is unlimited potential for loss. It is not possible to win everyday in the market and no guarantee for a predictable income. Next, Ask Yourself The Following Questions (1) Do I like working independently or do I require working with a team, in an office, or require the services of support staff? (2) Do I work well within and unstructured, unregulated, or non traditional environment? (3) Do I need traditional amenities that are already organized and available for me to choose from such as health insurance options, vacation days, and formal feedback? Summary of Day Trading Features * Short Holding Time / No Overnight Holding The term ''holding'' refers to the stock you are trading. In the case of day trading, you will only hold the stock in its "position" (in trading, the position refers to agreement by the holder to either buy or sell that specific amount of stock) for the duration of time that market is open (9am to 3:30pm). This amount to just under a 6.30 hours of holding time. As we have covered, holding the position for this specific time frame protects your stock from any overnight fluctuations (risk) in the market a time when you can not trade anyway). Once you close out your last trade for the day, you are essentially done done until you trade again the next morning. * Expensive Startup Costs Day trading requires some up-front components that will quickly add up in cost. Trading accounts require a minimum of $25,000 for a trader to make any trade, this amount must be viable in order to keep your trading access open. You will also need trading capital to actually make the trades an amount that can vary greatly for beginners, but its recommended you being with at least $500 to $2500. The above quoted refers to only the essential cost to initiate an account and being trading. Finally, there is education and training. It is advised that you take a day trading course from a reputable trainer, or, once you become comfortably proficient, you will want to invest in classes to hone your skills. * More Expensive Brokerage And Fees This should make sense since you'll be doing more trades, and you'll be trading everyday. Paying fees for each trade may take a large chunk from your earnings these range from 20-30% depending on the level of service that is provided. It will be to your advantage to comparison shop, or to find firms that may offer special discounts if you opened your trade account with them. * Earnings Are Compounded More Quickly Here is some good news, day trading offers a faster return on your earnings, which in turn, generate further earnings. If you are making successful trade, you will see daily feedback in your account, and this can be feel immensely gratifying. * Personality And Temperament Are you able to sit focus on great variety of real time, streaming data for hours at a time? Are you willing to forgo a traditional work life with corporate benefits and support? We have already covered the basic personal qualities of self discipline and independence required for a successful trader. Hope this post enhance knowledge of stock market beginners. Visit our blog - trendystockz.in
NSE:TATASTEELEducation
by trendystockz
VWAP: The Ultimate Day Trading ToolVWAP stands for Volume Weighted Average Price. In simple terms it is the average price weighted by volume. Don't worry I ll explain. The Calculations: Firstly the average of the high, low, and close: (H+L+C)/3, is calculated (technically known as the typical price). This typical price is multiplied by the candle's volume (depending on time frame used). The cumulative total is calculated with each successive candle. Cumulative volume is also calculated along with this. Then divide the cumulative total of price-volume by the cumulative total of volume. And we get VWAP. Fresh calculation start every day at 9:15am and end at 3:15pm. Sounds difficult?? Simply apply the tool on a chart and you are ready to go. Applications: Vwap is used by institutional players having huge orders. VWAP helps these institutions determine the liquid price points, near the vwap, for a stock over a very short time period. VWAP serves as a reference point for prices for one day. As such, it is best suited for intraday analysis. For me personally, it works best on any where between 1 minute to 5 minutes timeframes. I suggest you to read the full post before reaching at conclusions :) Two Strategies: Hit and Run: We buy as the price pulls back to the vwap. We wait for a signal candle reflecting buying interest and pull the trigger. Here we place the stop below the vwap or the previous swing low, whichever is lower. The advantage is that on this lower timeframe stop will be small. For exits use targeted approach. One can also trail. The Value Trade: Buying below the vwap is generally considered as a good buy. Two variations-- 1) As the price breaches vwap wait for price to also break an important swing low for the day with immediate reversal supported by volume. Buy above this high volume candle with a stop below it. 2) Price breaches vwap and makes a low X. Wait for the price to pullback to vwap (Y) and then head lower again to X or make a higher low near X. Here Y would be the entry point. with stop at X. Both these strategies can also be used for shorting a stock. You just have to read it upside down. # Also keep in mind that day trading is not as easy as explained above. 1) We also analyse daily, hourly and lower time frames before pinpointing entry on 1 minute chart. 2) Trades taken in the direction of trend yield handsome returns. 3) We also have to take into consideration the overall indices movement. 4) Notice if the stock has been out-performing the indices. # In trading world, nothing works 100%. So active trade management and efficient money management is essential to avoid unbearable losses. As I always say, "Greed and Fear are traders' enemies". We can't eliminate them but they can be managed patiently. Before applying this strategy you should first test it for few days to learn trade execution. I suggest you to use them on top gainers and losers. One has to be fast and fully concentrated in the morning. But if you missed the morning move, that does not mean the end of world. Wait for the next opportunity and grab it. Just practice, practice and practice more. It ll make you perfect. Hope this post will enhance knowledge of some traders. Do hit like button for better stuff in future. Regards
NSE:YESBANKEducation
by Bravetotrade
39
H&S Breakdown With Big Candle. Edelweiss Fin For TGT 227-220A h&s breakdown observed yesterday with big red candle in edelweiss fin stock where neckline was around 246 levels....with a head size of around 30-35 points which indicate downside possible target upto 227--220. one can look forward to this stock for selling opportunity near resistance levels. Disclaimer :- this study is posted for education purpose only...not for buy/sell recommendation. do use your wisdom before making any trading judgment.
NSE:EDELWEISSEducation
by marketprophecy