Rants 'n Raves

How to Learn Day Trading

Way to Go

Trading and Investing

Execution

Waypoints 

Bucking the Trend 

Trading for a Living 

Data Packets 

Clash of the Titans 

Food for Thought 

Chicken Sexing 

Self Evident Truths 

Aya Ram Gaya Ram 

Mind Your Words 

System Hopping 

Perfection 

Knack of Trading 

Catch-22 

Emotional Baggages 

Rubik's cube and Trading 


Oceans of Fantasy 

Trader Analysis

Close the Gap 

Automaticity 

Doing without Thinking


Concepts and Tactics 

Reality of the Market 

Fantasies

Self feeding Loops 

Critical Mass 

Visualisation 

Slippery Slopes 

Deliberate Strain 

Rope Trick 

Fundamental Flaws 

Losses 

Uncertainty 

Actionable Analysis 

Decision Making 

Discipline 

The SAR Circus 

Probability 

Small Stuff 

Thou Shalt Fear 

Trading Cults 

Anchoring 

Win More,Lose Less 

Enduring Edge 

Love Virgins 

Think Different 

Number Puzzles 

Unfocus 

Scratch and Win 

Resilience 

Situational Awareness 

Consistency  

Cornerstones 

Functional Fixedness 

The Checklist 

Inefficient Indicators 

Endowment Effect 

Tacit Knowledge 

Conviction 

Goal Setting 

If and Then 

Burn the Charts 

Quit and Win 

Re-read and rediscover 

Capitulation 

Mission Statement 

Emotions 

Practicing to Fail 

Habits 

OODA Loops 

Order Flow Trading 

Lion Taming 

Trading is Hard 

Own Your System 

Swiss Haircut 

Learning to Fish 

Drug Your Trading 

Breakout Blues 

Free System Testing 

Observe the Obvious 

Vuca,Vuca.Hey 

2014,The YTC 

Market Sense

Long Haul 

Testing Times 

HFT Humbug 

Trading Hesitation

Fuzzy Process 

Three Thoughts 

Selective Attention 

Practice Patience 

Connect the Dots 

Seven Pillars
97

Structure And Patterns

Basic Structure

Daily Trading Patterns

Inside And Outside Days

Trends And Ranges

The Opening Price 

Absorption 

Trouble Areas 

Layer Over Layer 

First Trouble Area 

Three Trade Setups 

Trading the Ranges 

Buy Low, Sell High 

Barbed Wire 

VWAP Strategy 

Trends 

Scouting Party 

Spike and Channel 

Initial Range 

Exit First 

Gaps 

Price Channels 
 
Location 

Decision Points 

Round Numbers 

Price Flips 

Brackets  and Envelops

Cigarettes 

Classic Patterns 

Make-or-Break Levels 

Major Swing Pivots 

Liquidity Pools 

Master Candle 

Fluids 

Trend Days 

Pressure Plays 

Trading Plan 

Space 

Score 

Initial Stops 

Sniper Shots 

Dynamic Levels 

TRAP 

Failure to Continue 

Daily Dose 

Trend Traps 

Taming the Trend 

More on Critical mass 

More on Structure
48

07022012

Nifty opened at 5390 within previous days range. Sentiment was neutral and expectation of the range move to continue till it breaks PLOD or PHOD.which did not happen during the day..Today also breakout failures provided two good opportunities.

Market found support at LOD after the first FBO.Then went up and traded just below 5390 for more than one hour. This created three levels of resistance. 5390 .BRN and daily time frame resistance 5400 and HOD..Once 5390 broke it trapped many traders at 5390 and 5400. When Nifty failed to go above HOD these new longs panicked and hurried to exit pulling down Nifty to PLOD.

Always watch out LOL  (Layer Over Layer S/R). It is money in the Bank. 

Trends and Ranges

 

Trade the pullbacks in trends. In trading ranges trade the Breakout failures

Trend is a series of Breakouts and trading ranges are a series of Breakout failures

06022012

Nifty gaped up above the PHOD. But 5400 is a strong resistance in daily charts. Even though the bias is bullish we must pay attention to the big picture. We could have gone long if it opened above 5400. After a pullback Nifty made another attempt to cross the resistance and failed . A good opportunity to short.

We got two other BOF opportunities one long and another short.Finally another opportunity to go long when nifty fall was arrested at the previous day close.
BOF are the easiest and safest trade opportunities.Enter trades only at proven S/R levels.
But ensure that the FTA allows an acceptable RR ratio.

Inside and Outside Days

 

When price trades within yesterdays range it is an inside day. It shows nothing has changed since yesterday and market is likely to trade within the band..Previous days price band acts as a big range. So trade this as you trade a range. Selling the highs and buying the lows.

If the market is trading above PDH or below PDL it is an outside day. If it is above PDH bias is bullish and below PDL bias is bearish.An outside day shows us that something has changed since yesterday.

Inside the range, buy at support when price falls, and sell at resistance when price rises.

If price trades above the PDH the buyers are clearly in control and buy pullbacks

If price breaks below the PDL  the sellers are control and sell retracements.