Originally Posted by niftytaurus

Hi ST Sir & other fellow traders

I have some queries related to Price action
1) I understand trend & I have decided also on what direction should I trade..Suppose I have decided
I will take short..so i wait pullback to enter?but how do we know that pull back has finished..like will it
be one leg pull back or 2 leg pullback..will it be simple pullback or complex..
as trend was bear & I wait a pullback rally..so I Can just notice when price gets weak in rally & i
enter..& then sometime it happens..rally go 1 more leg & then comes down in my direction..so My sl
hit & loss & then next trade, I couldnt take due to fear..
despite most of the times right about trend, I couldnt get right entry at right time..how to solve that
2) when price touches support & resistance, how do we know will it sustain that or not ..example if
price goes down & stops at resistance..so how do we judge that will it takes support there or will it
break..what price action should we there to decide?

kindly solve this problem..I know those decison comes with practice & have to use discreation..but
can we make some price action rules or price action patterns there which can help in taking more
objective decision
Thanks
1) Here we take trades in the direction of the visual trend. In your question the visual
trend was down. If there is no corrective rally, we short the immediate next mpl. But
we get a minor uptrend in the form of a corrective rally.We are looking for a place to
short. The minor uptrend we are in will have few mpl and mph. We short the highest
mpl and keep a stoploss of the immediate mph. The very fact that mpl is cracked
means that we are now in minor downtrend. This will result in only 2 situations one
is that the corrective rally is over and the visual downtrend is manifesting itself in
which case we have shorted at highest mpl in the corrective minor uptrend.

The second possibility is the market will do a minor downtrend and will go up again
to make a higher VPH in which case our short position will be liquidated on stoploss
as now we are in some kind of visual uptrend.

The above does not apply in sideways range markets.

2) When market comes to a support/ resistance level, we have to see the type of
bars it prints. If it is printing small up/down bars and going sideways, there is a
possibility of breaking of that level. But if it is snapping back from that level strongly,
that means the level is holding so we take our profits and wait for the crack of
another mpl to start a fresh trade. Sometimes the market will break that level and
then go back above the PL it broke ( in the form of failure ) in which case we book
profits. But if the breakdown is on a strong bar with good volume, that means that
the support has been broken ...then we look for adding in our short positions as we
are expecting the downmove to accelerate.

The above is fairly objective way of trading,with reasoning and not hunch for our

trading actions

In good bull markets, in first leg price always retrace towards 50 SMA, for almost 3-4
times...always buy second or at the max 3rd touch...never try to caught 1st and 4th
as it deceive and they are character point towards changing in trend may be
I have question when we are identifying strongest sector and then strongest stock
in that sector in case of Bull Market. This selection is based upon which time frame
daily, or weekly or monthly .
Suppose if I want to trade intraday I will consider RS on daily time frame and take
the strongest sector and then strongest stock to trade on 60 mins time frame next
day with our core strategy. If I am trading weekly based will take RS on weekly
time frame and pull the strongest stock , will be buying this stock in every dips
following next 5 days.
GAP DAYS..
Gaps are two types :Fade gaps and continuous
Gaps..

Fade gap:The gap thats fades it direction i'e :

Ex:gap up opening and markets moves to south
and vise verse

Continuous Gap:
Gap that moves in the respective direction i.e;
EX:Gap up opening and moves in the upward
direction reverse for Gap down
How to read mkt technicals? Ace trader Atul Suri explains Atul Suri tries to
explain the details and the processes involved in a technical analysis of the
markets.

Q: How will you describe the art of technical analysis?

A: Technical analysis is the art of studying prices and volume. It is as simple as

that. You look at price. Most things in the market are subjective but price is a
reality. There is no ambiguity or interpretation. When you study prices and predict
or look at future trends it can be termed as technical analysis. Human beings commit
the same errors time and again. Through prices, most people are going to behave in
a certain way. Based on it, we try to predict future prices. Any big market top you
will notice that is when the euphoria is at the highest, the optimism is the highest,
the leverage is the highest. It really makes the market tops. This is something
whether it was true in 1900-1920, 1950 2000, and 2013. When we study repetitive
human behaviour through prices, we identify trends and by riding these trends is
what we try to achieve in technical analysis. In all its simplicity, it is a study of price
and volume.

Q: Where does volume fit in the equation and how important is it in

technical analysis?

A: Volume is very important. There are lots of volume indicators too. Stocks are
moving. There are thousands of stocks that are listed. A trader would always look for
a big trend because that is how they are tradable and money is made. They are
always accompanied with very good volumes like we use the term breakout.
Breakout is essentially when price moves out of a certain range. Breakouts can
happen by decimals and then fall back and fail which could be loss making. But when
these happen, the trends become fruitful. When prices are accompanied with large
volumes, then those price movements are what give you confidence. However price
movements happen which really do not have large volume moves. You know that
this is likely to fail. So volume cements the whole price moves. So it is a
confirmation signal and it is very important in that sense.

Q: Which makes this whole concept of trend very important? People do not
often understand that. How would you describe the stock or a market that is
in an uptrend versus the downtrend? What marks out that clear directional
move for it?

A: For this, I will have to go back to the father of modern technical analysis, Charles
Dow. He came up with the Dow Theory and this is the first successful attempt which
is even valid today of defining a trend. When a stock is moving up, every stock or
market corrects. However, the next move surpasses the previous high and again it
corrects. The next move again surpasses the previous high. So, essentially you say a
 market or a stock is in an uptrend. If the market makes new highs it’s like climbing
steps; if you are blindfolded and every step you take is a higher step. So you know
that you are climbing upstairs that means a trend is up. You are blindfolded
but your next step is lower so that is the inverse. The moment the market
starts making newer lows, you know that you are in a downtrend. When you look at
the bigger moves in the market they are all one of the underlying principles is higher
tops and higher bottoms and in an uptrend lower tops and lower bottoms in a
downtrend.

Unless they break the weekly channel trendline,they are always short on
rallies

I usually like to go long on a stock only when the weekly trendlines are
sloping upwards.This gives better risk reward ratio.

Exiting trades too early ?

http://lessons.tradingacademy.com/ar...ampaignId=1929

Does this sound familiar? You’re in a good high-probability long trade as born out by the
Odds Enhancer calculations. The trade got filled and stalled for a moment before the price
action began to drop. As it got close to the stop you thought, “It looks like it’s going to take
me out, but that’s OK cause my stop is working.” Now, the interesting part happened when
the price action took a turn and began to move up back up. As soon as it went into the
green, you became fearful and worried. In fact, you may have panicked as you thought, “I
should grab this profit because I need all the profits I can get …it might go back down and
take me out for another loss.” The urge to take the small profit was too much for you to
manage. You prematurely exited the trade and didn’t allow the winner to run. You did not
follow your plan. You second guessed it and, immediately after you closed the trade, the
price action rose until it hit what would have been your target. When that happened you felt
depressed and angry because you “caved” again to anxiety and fear of letting the “green”
run. Now, what did you tell yourself? Well, because you are a savvy trader you said that
taking that small profit distorted your judgment and distracted your focus. In other words,
you knew that you had done exactly what you had specifically told yourself that you
wouldn’t do… again.

Prematurely exiting or getting out of a trade too soon while not allowing a winner to run is a
common problem. Another way to say it is that you didn’t follow your plan and as you may
know, allowing your plan to play out is crucial to gaining information on whether the plan is
an effective one. It is for this reason and for several others as well, that you’ll want to note
it in your trade log and your thought journal. Documenting the trade data helps you to
uncover the mechanical triggers that are prompting the exit. For example, in the example
above, it wasn’t the price action’s threat of hitting the stop; which is an issue for many who
move stops in an effort to avoid the loss; it was the movement of the price going in his
favor that initiated the anxiety and fear that the profit would be lost if the price action
reversed and then hit the stop loss. Gaining the mechanical specifics will take you closer to
getting a handle on a solution. Additionally, you want to document your internal data; that
is, what you are telling yourself and feeling as you are about to take yourself out of the
trade. In the example the thought was, “I should take this profit because I need all the
profits I can get before it might go back down and take me out for another loss…” This
thought is what prompted the fear and worry. In other words, that thought was masking a
deeper limiting belief that a small profit meant that he was a “good” trader and that he
must hang on to that at all costs…even the cost of hitting his target. The limiting belief was
connected to his self-esteem and it became more important to hang on to this small profit
because of what it meant than to risk it by letting the trade run.

Now that you have pulled back the layers of the problematic onion by using your journal/log
process, it’s time for you to address the negative thought stream head on. Interrupt the
pattern once you recognize it’s happening by stopping the process in its tracks. As soon as
you feel the tension, anxiety, butterfly stomach, etc.; stop and take several deep breaths.
Count to ten or higher. Change your position by standing up or doing something different,
such as a brief physical exercise. This will take you out of the pattern, bring you back to the
present moment and help you to focus on what matters most in the trade. Then ask
yourself, “What must I be telling myself or believing to feel this tension, anxiety, butterfly
stomach? What is really happening to the trade? What is in the interests of my A-Game
right now?” At that point you are in a position of strength. You have interrupted the pattern,
identified what is driving the desire to exit the trade, focused your attention on what
matters most, and you can then do the right thing. This is not a panacea, you must practice
this procedure. It’s like any important behavior you want to install as a habit; you must
develop the capacity for strength and endurance by doing it repeatedly and training
yourself. After doing this for 60 to 90 days you will have installed a new powerful, positive
habit.

It’s imperative that you work on bringing and keeping your A-Game at your trading
platform. This begins with becoming aware of what will take you off course and
documenting the mechanical and internal data. When you have identified the underlying
issues, then become proactive and pre-emptive in dealing with them by changing the
negative thinking and interrupting the patterns one trade at a time. Getting out of the trade
too early and not letting your winners run is as bad as moving a stop because in the long
run they both lead to undesirable results. This is a critically important component of being
consistently successful. Remember, you can’t change what you can’t face, and you can’t
face what you don’t know.
Rules to take how many% profit

Rule No.1

Keep the Capital safe...In my first learning curve was protect the capital...profit is
secondary...

Rule No.2

My business mind always use to say ROI per annum should be 35% ~ 40% in any kind of
market......I will follow my own rule - good or bad...

Rule No.3

I never ever try to predict the market....go along with the existing opportunity..

Rule No.3

Number of trade should be less. will wait for my turn as per my home work.

Rule No.4

No Intraday specific.....if i will get opportunity, then i will convert that into intra day trade..

Rule No.5

No faith on Big Numbers.....i.e..nifty 10000 or 4000.....live in present situation.

Rule No.6

Keep always family environment good...trading is, one business...many traders spoil the
family environment...