Tuesday, 23 January 2018

Friday, 19 January 2018

Stock Future Trading Performance

Here is this current month's stock future trading performance report.  Trading has been done only for couple of hours in the morning and this disciplined trading has turned trading capital of Rs. 90000 into Rs. 1,80,000 in just 20 days of this month so far.

Special care has always been taken so that,
1) Trade message reaches you in time along with SL and target levels so you can comfortably place your entry order and able to take all the trades at suggested level.
2) Trading has been done in such a way that traders can comfortably trade with 2 lots and less than 1 lakh of trading capital.
3) Trading is done only in large cap or highly liquid mid cap stock futures and avoiding high beta stocks.
4) Max risk is always limited to around Rs. 3000 per lot per trade so that it does not hurt much.
5) Max loss making trades per day are restricted to 2 trades so it ensures our survival.

Click here to view it.

Around one year back when I started trading in stocks, I never thought it would produce such fantastic results month after month consecutively, but it is reality now. 

Nifty Future 19012018

It opened within previous day's range and failed to trade below BRN 10800.  With this vital information, BPB of DO/PDC was a good setup to go long.  After that it traded in a narrow range and towards the fag end it did break out of this range.  Direct BO of HOD or BPB of PDH was another good setup to go long which yielded a lot.

Thursday, 18 January 2018

Nifty Future 18012018

It opened full gap up with trend.  After that consolidated in a narrow range.  BOF of this range low was the setup to go long, but prices failed to test or break high of the day indicating weakness in the buyers.  Towards the fag end, BPB of range low was a good setup to short.

Wednesday, 17 January 2018

Nifty Future 17012018

There was lot of volatility soon after it opened.  Then it settled down and traded in a tight range creating barb wire around PDC.  BPB of range high was a good setup to go for a long trade which yielded good.  Was able to share this in advance on Twitter.  If you have not yet followed me on Twitter, here is my Twitter handle, @charttechnical

Tuesday, 16 January 2018

Nifty Future 16012018

It opened within previous day's range and traded with bearish bias.  In noon time, once it failed to move past PDC, a good BOF setup emerged which moved well.  Towards the fag end, BOF of LOL BRN & PDL appeared good setup but did not yield.

Friday, 12 January 2018

How to trade range

This post is all about trading a typical range formation using only price action without any help from indicators or other studies.  Range trading depends on lot of other factors like trend, location of the range, whether it has formed after a directional move, time duration of the range, size of the range, number of tests at range extremes, etc.  Here I would not go into those details and would like to focus only on how we can typically trade such range with pure price action.

Here is the typical range formation,

Whenever the price breaks out of the range in either direction we can look for entry into the trade.  There are 3 ways to enter.  1) Enter on the breakout.  2) Enter on the pull back to the breakout level. 3) Enter after the pull back or retest of the breakout level is over.  Something like this,

While trading ranges like this, we need to keep in mind the fact that often breakout attempts fail, so entering on breakout of the level has its own risks.  This is the reason professional traders wait for the pull back to occur for their entry once breakout appears successful to them.  Also there will be traders like me who prefer to enter only upon confirmation of successful breakout by entering on break of swing pivots.

As a trader one needs to make his/her own choice here for the entry. In my opinion, ultimately everything works provided a trader is able to manage the risk and size the position accordingly.

Now lets have a look at the HDFC future chart and understand in more detail about trading the range.  Here the range got formed over a 4-week period and it broke out of the range on 12th Jan 2018 as shown in the chart below. (Click on the charts to zoom)

Now lets explore the different entry locations on my intraday trading timeframe chart (3-minute),

All possible entry points are marked by the characters A, B, C etc along with markings of important price behavior.

A) It is the breakout entry.
A1) Confirmed entry on break of minor swing high.
B) Entry on first pullback.
C) Entry on deeper pullback to low of the zone.
D) After the deeper pullback is over and retest of the low is over.
E) One more opportunity to enter on pullback.

As you might notice, no matter how and where you entered, either on the breakout or on pullback or on confirmation, you were able to trade well and make some money with proper understanding of what is going on there.  Hope this little information helps the next time you decide to trade the range.