A Strong Trading Mind
- Thread starter amitrandive
- Start date
Hook Reversal
The hook reversal has the same bar as the Open-Close and Closing Price reversals, but it is positioned differently in relation to the range of the previous day.
After an up-trend:
• The Open must be near the High,
• The Close must be near the Low, and
• There is a lower High and higher Low compared to the previous day.
After a down-trend:
• The Open must be near the Low,
• The Close must be near the High, and
• There is a lower High and higher Low compared to the previous day.
Remember:
The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.
Source - http://www.incrediblecharts.com/
The hook reversal has the same bar as the Open-Close and Closing Price reversals, but it is positioned differently in relation to the range of the previous day.
After an up-trend:
• The Open must be near the High,
• The Close must be near the Low, and
• There is a lower High and higher Low compared to the previous day.
After a down-trend:
• The Open must be near the Low,
• The Close must be near the High, and
• There is a lower High and higher Low compared to the previous day.
Remember:
The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.
Source - http://www.incrediblecharts.com/
Infinite Love
poster :: Senthil Kumar Rajarathinam
Me: Hi, how you doing?
She: Doing good. Nice to see you all here. Have you seen my son's photos ?
Me: No ma'am.
She: He sent me few albums last week. Will show you those.
Then she started showing one album to us.
She: That tall and handsome guy sitting in middle is my son and the little one sitting next to him wearing specs is my grandson.
Then she shown us many of those albums and described those moments with lots of joy in her words.
We enquired about her with the people over there. They replied she is 74years old now. Her son left her here some 15years back when her husband died and got settled in US.
Once in a year they send photo albums taken by them and, once in 5 year they come and stay here for just 2hours with her.
We were there for few hours with her. We never seen anything she was complaining about her son but proud of whatever he does. She use to do same with everyone she meets.
Love and affection of a mother is always infinite.
A cruel act a son can do to her mother is leaving her when she wants him badly.
Don't send your mother or father to any homes. If you can't take care of them when they are old, then you don't deserve to live.
poster :: Senthil Kumar Rajarathinam
Me: Hi, how you doing?
She: Doing good. Nice to see you all here. Have you seen my son's photos ?
Me: No ma'am.
She: He sent me few albums last week. Will show you those.
Then she started showing one album to us.
She: That tall and handsome guy sitting in middle is my son and the little one sitting next to him wearing specs is my grandson.
Then she shown us many of those albums and described those moments with lots of joy in her words.
We enquired about her with the people over there. They replied she is 74years old now. Her son left her here some 15years back when her husband died and got settled in US.
Once in a year they send photo albums taken by them and, once in 5 year they come and stay here for just 2hours with her.
We were there for few hours with her. We never seen anything she was complaining about her son but proud of whatever he does. She use to do same with everyone she meets.
Love and affection of a mother is always infinite.
A cruel act a son can do to her mother is leaving her when she wants him badly.
Don't send your mother or father to any homes. If you can't take care of them when they are old, then you don't deserve to live.
There was a woman who wanted to know how her husband would react if she left without telling him where she had gone. She decided to write him a letter saying she is tired of him and didn't want to live with him anymore.
After writing the letter, she put it on the table in the bedroom and then climbed under the bed to hide until her husband got home. When he eventually came back home, he saw the letter on the table and read it. After a few moments of silence, he picked up the pen and added something to the letter.
Then he started to get changed, whistling happy tunes and singing and dancing while he did so. He grabbed his phone and dialed a number.
His wife listened from under the bed as he started chatting to someone. "Hey babe, I'm just changing clothes then will join you," he said. "As for the other fool, it finally dawned on her that I was fooling around on her and left. I was really wrong to have married her; I wish you and me had met earlier. See you soon, honey!"
Then he hung up and walked out of the room. In tears and very upset, she climbed out from under the bed and stumbled over to read what her unfaithful husband had written on the end of her letter.
Through teary eyes, she read:
.
.
.
.
.
.
.
.
.
"बावली पैर दिख रहे है तेरे बेड के नीचे से"
Baawli....Pair dikh rahe hain tere, bed ke neeche se...
(STUPID I CAN SEE YOUR FEET UNDER THE BED)
After writing the letter, she put it on the table in the bedroom and then climbed under the bed to hide until her husband got home. When he eventually came back home, he saw the letter on the table and read it. After a few moments of silence, he picked up the pen and added something to the letter.
Then he started to get changed, whistling happy tunes and singing and dancing while he did so. He grabbed his phone and dialed a number.
His wife listened from under the bed as he started chatting to someone. "Hey babe, I'm just changing clothes then will join you," he said. "As for the other fool, it finally dawned on her that I was fooling around on her and left. I was really wrong to have married her; I wish you and me had met earlier. See you soon, honey!"
Then he hung up and walked out of the room. In tears and very upset, she climbed out from under the bed and stumbled over to read what her unfaithful husband had written on the end of her letter.
Through teary eyes, she read:
.
.
.
.
.
.
.
.
.
"बावली पैर दिख रहे है तेरे बेड के नीचे से"
Baawli....Pair dikh rahe hain tere, bed ke neeche se...
(STUPID I CAN SEE YOUR FEET UNDER THE BED)
School Under Bridge In New Delhi offers free Education to India's poor children, a salute to the teachers Rajesh Kumar Sharma & Laxmi Chandra.
Poster : HARMEET SINGH
One Indian man has become a hero after he began educating New Delhi's poorest children -- and even went as far as creating a free school for them under a metro bridge.
This metro station railway line has given shelter to a cause that stands out. This metro bridge house a makeshift school that teaches children from the neighboring slum.
Sharma, a 40-year-old father of three from Aligarh, was forced to drop out of college in his third year due to financial difficulties. When he decided to start the free school, he didn't want other children to face the same difficulties he had.
Laxmi Chandra, a postgraduate in science, also helps out at the school.
“I don’t take attendance. They love coming here because there is no school-like boundaries. In fact, I want to keep it like that,” Chandra told the Indian Express.
Sharma says his greatest achievement is changing the attitude of his students' parents. Many of them now encourage their children to study.
“They understand that if children in the villages in the interiors of the country can go to school, why not in the national capital.”
*** They work on cleanliness of the place /drinking water...everything in place with mutual co operation and team work.
Poster : HARMEET SINGH
One Indian man has become a hero after he began educating New Delhi's poorest children -- and even went as far as creating a free school for them under a metro bridge.
This metro station railway line has given shelter to a cause that stands out. This metro bridge house a makeshift school that teaches children from the neighboring slum.
Sharma, a 40-year-old father of three from Aligarh, was forced to drop out of college in his third year due to financial difficulties. When he decided to start the free school, he didn't want other children to face the same difficulties he had.
Laxmi Chandra, a postgraduate in science, also helps out at the school.
“I don’t take attendance. They love coming here because there is no school-like boundaries. In fact, I want to keep it like that,” Chandra told the Indian Express.
Sharma says his greatest achievement is changing the attitude of his students' parents. Many of them now encourage their children to study.
“They understand that if children in the villages in the interiors of the country can go to school, why not in the national capital.”
*** They work on cleanliness of the place /drinking water...everything in place with mutual co operation and team work.
Trade with only one Setup.
http://www.learntotradethemarket.co...ies/master-one-price-action-trade-setup-first
Are you trying to trade with a combination of different methods, indicators or systems? Do you feel a bit overwhelmed by all of it? The first thing you are going to need to do is change how you think about trading strategies.
Trading is not about learning as many methods or systems as possible and then combining them into some sort of ‘hybrid Holy Grail’ trading strategy. Sadly, this is not going to help you, it will only hurt you. Trading is simply about learning an effective trading strategy or ‘edge’ and becoming a master of it, or a specialist, if you will. You then simply look for your trading edge in the market, and since you’ve mastered it, you will know when it is present and you will act without hesitation.
Trading is about jumping in the market when you have decided the odds are in your favour. Your trading edge is what gives you better odds at making money in the market.
Now, in regards to becoming a trading specialist. It’s pretty simple really, until you have really mastered the trading edge you are using, you won’t be hitting your full potential as a trader. Thus, it is my strong recommendation that traders focus on only one price action trade setup at a time, until they are truly confident they have mastered it. That might mean you only trade that one setup for 6 months, it’s the only one you study and look for in the market. Once you have mastered how to trade it in all market conditions, and you have no doubt of how and when to trade it, then, and only then, may you move on to another setup.
I find that many people don’t want to put in the time to learn and master their trading method. Then, when they lose money, they act confused and shocked. The problem with trading for most people is that there are no rules, there’s no boss, there’s no one telling you in your face that you must do THIS if you want to achieve THAT. So, human nature and habit take over and people end up doing as little work as possible.
This is why I get emails from people asking me about their trading strategy, asking if XYZ ‘is a setup or not’…because they didn’t take the time to master their trading method. When you become a master of your trading strategy, you don’t need to ask anyone else if your edge is present in the market, because you already know if it is or not.
Indecision and hesitation while trading a live trading account, is one of the fastest ways to lose money, simply because you were unprepared. When it comes to your hard-earned money being on the line, don’t you want to be as prepared as possible?? I sure do. So, if you lose money in the market because you didn’t put in the time to really master your trading method by mastering one setup at a time, you have no one to blame but yourself.
Once you’ve become a specialist in your method, when your trading edge is present, you will not hesitate. This is critical because in order to realize the full power of your trading strategy, you need to take every occurrence of your trading edge (setup) that you see, because it needs to play out over a series of trades to be realized. So you need to remove hesitation and indecision from your mind, and the way you do that is by mastering one trade setup at a time, and in the case of my methods, that means one price action setup at a time.
Finally, traders become too inundated with data, economic news and trading methods, they believe that ‘more is better’ and they just need to know more or learn one more trading method to start profiting consistently. Eventually, when they realize this doesn’t work, they give up in exhaustion and frustration.
Simplification of your trading is another huge reason you need to master one price action setup at a time. I would even go so far as to say that you only need to master one price action setup if you want. Imagine sitting down at your charts and knowing that you’re only looking for one trade setup, and if it’s not there then you walk away. Trading doesn’t have to be complicated or confusing, nor should it be. The way that you remove the confusion and complication from your trading is by taking the time to master one price action setup at a time
http://www.learntotradethemarket.co...ies/master-one-price-action-trade-setup-first
Are you trying to trade with a combination of different methods, indicators or systems? Do you feel a bit overwhelmed by all of it? The first thing you are going to need to do is change how you think about trading strategies.
Trading is not about learning as many methods or systems as possible and then combining them into some sort of ‘hybrid Holy Grail’ trading strategy. Sadly, this is not going to help you, it will only hurt you. Trading is simply about learning an effective trading strategy or ‘edge’ and becoming a master of it, or a specialist, if you will. You then simply look for your trading edge in the market, and since you’ve mastered it, you will know when it is present and you will act without hesitation.
Trading is about jumping in the market when you have decided the odds are in your favour. Your trading edge is what gives you better odds at making money in the market.
Now, in regards to becoming a trading specialist. It’s pretty simple really, until you have really mastered the trading edge you are using, you won’t be hitting your full potential as a trader. Thus, it is my strong recommendation that traders focus on only one price action trade setup at a time, until they are truly confident they have mastered it. That might mean you only trade that one setup for 6 months, it’s the only one you study and look for in the market. Once you have mastered how to trade it in all market conditions, and you have no doubt of how and when to trade it, then, and only then, may you move on to another setup.
I find that many people don’t want to put in the time to learn and master their trading method. Then, when they lose money, they act confused and shocked. The problem with trading for most people is that there are no rules, there’s no boss, there’s no one telling you in your face that you must do THIS if you want to achieve THAT. So, human nature and habit take over and people end up doing as little work as possible.
This is why I get emails from people asking me about their trading strategy, asking if XYZ ‘is a setup or not’…because they didn’t take the time to master their trading method. When you become a master of your trading strategy, you don’t need to ask anyone else if your edge is present in the market, because you already know if it is or not.
Indecision and hesitation while trading a live trading account, is one of the fastest ways to lose money, simply because you were unprepared. When it comes to your hard-earned money being on the line, don’t you want to be as prepared as possible?? I sure do. So, if you lose money in the market because you didn’t put in the time to really master your trading method by mastering one setup at a time, you have no one to blame but yourself.
Once you’ve become a specialist in your method, when your trading edge is present, you will not hesitate. This is critical because in order to realize the full power of your trading strategy, you need to take every occurrence of your trading edge (setup) that you see, because it needs to play out over a series of trades to be realized. So you need to remove hesitation and indecision from your mind, and the way you do that is by mastering one trade setup at a time, and in the case of my methods, that means one price action setup at a time.
Finally, traders become too inundated with data, economic news and trading methods, they believe that ‘more is better’ and they just need to know more or learn one more trading method to start profiting consistently. Eventually, when they realize this doesn’t work, they give up in exhaustion and frustration.
Simplification of your trading is another huge reason you need to master one price action setup at a time. I would even go so far as to say that you only need to master one price action setup if you want. Imagine sitting down at your charts and knowing that you’re only looking for one trade setup, and if it’s not there then you walk away. Trading doesn’t have to be complicated or confusing, nor should it be. The way that you remove the confusion and complication from your trading is by taking the time to master one price action setup at a time
Client: I have heard recently that Mr. Rajan has reduced Repo Rate by 50 basis points and everyone is saying that this is good for the market. Loan EMI may also come down. What is this rate cut means actually? I want to understand this.
Coach: To understand this you first need to know, how does a bank function.
Client: Why?
Coach: Because all these are inter-related. Tell me – what does a bank do?
Client: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also.
Coach: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI.
Client: Ok.
Coach: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank.
Client: I know that. Bank gives that Rs. 100 to someone who needs a loan.
Coach: No, it is not that simple. Remember, though bank can earn interest by giving away loans, but it is also very risky. There are many cases of loan defaults. This way banks can put all our money into high risk areas. It has to be protected.
Client: How?
Coach: Ok, RBI has made it mandatory that upon receiving, say, Rs. 100 – banks first have to deposit Rs. 4 with RBI. RBI keeps this Rs. 4 in its current a/c and hence banks do not receive any interest on this money. This is known as Cash Reserve Ratio or CRR, which is currently at 4%.
Client: Hmmm, then?
Coach: RBI has also made it mandatory that upon receiving, say, Rs. 100 – banks need to compulsorily buy central and state govt. securities of Rs. 21.50. Of course banks will earn some interest income here. This is known as Statutory Liquidity Ratio (SLR), which is currently at 21.50%.
Client: Ok, so you mean to say that upon receiving Rs. 100, banks can spend only Rs. 74.50 at its own will.
Coach: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50
Client: But you were saying that banks can also borrow from RBI. What interest banks pay to RBI?
Coach: Before 30th September, banks were paying 8.25% interest to RBI when it borrows money from RBI. Now this rate has been reduced by 50 basis points. So banks now need to pay interest to RBI, if it borrows from RBI, at the rate of 7.75%. This is known as Repo Rate.
Client: Can fixed deposit rate be affected by reduction of Repo Rate?
Coach: Of course. If banks get money from RBI @7.75%, why will banks pay higher interest to you and me? One year FD rate is already revised by many banks and it is equal to or very close to 7.75%.
Client: But as now banks are getting money at a cheaper rate, then they should reduce the loan interest rate i.e. passing on the benefits it receives.
Coach: Correct. They should. And on that hope market is cheering. If companies get loan at a cheaper rate, they will likely to expand their businesses. That will create more jobs, more income and boost the economy.
Client: How is inflation linked to this?
Coach: See, when loan becomes cheaper, people tends to borrow more. That means people will have more money to spend. This will increase the demand for goods, and if supply does not increase to match this demand, then prices will increase.
Client: So there is a chance, that inflation may rise also?
Coach: Well, yes. But inflation depends on many other factors as well, like production (industrial and agricultural), manufacturing, export – import, foreign currency movement etc. So inflation may increase or may not.
Client: One last question. Like we deposit our money with banks, can banks also deposit their money with someone?
Coach: Yes, they can deposit with RBI and earn interest too. This interest is typically 1% less than the repo rate. This rate is known as Reverse Repo Rate.
Client: Great! So now I understand CRR, SLR, Repo Rate, Reverse Repo Rate and their impact on deposit rate, loan interest rate and on inflation. Thanks.
Coach: Welcome!
Coach: To understand this you first need to know, how does a bank function.
Client: Why?
Coach: Because all these are inter-related. Tell me – what does a bank do?
Client: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also.
Coach: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI.
Client: Ok.
Coach: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank.
Client: I know that. Bank gives that Rs. 100 to someone who needs a loan.
Coach: No, it is not that simple. Remember, though bank can earn interest by giving away loans, but it is also very risky. There are many cases of loan defaults. This way banks can put all our money into high risk areas. It has to be protected.
Client: How?
Coach: Ok, RBI has made it mandatory that upon receiving, say, Rs. 100 – banks first have to deposit Rs. 4 with RBI. RBI keeps this Rs. 4 in its current a/c and hence banks do not receive any interest on this money. This is known as Cash Reserve Ratio or CRR, which is currently at 4%.
Client: Hmmm, then?
Coach: RBI has also made it mandatory that upon receiving, say, Rs. 100 – banks need to compulsorily buy central and state govt. securities of Rs. 21.50. Of course banks will earn some interest income here. This is known as Statutory Liquidity Ratio (SLR), which is currently at 21.50%.
Client: Ok, so you mean to say that upon receiving Rs. 100, banks can spend only Rs. 74.50 at its own will.
Coach: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50
Client: But you were saying that banks can also borrow from RBI. What interest banks pay to RBI?
Coach: Before 30th September, banks were paying 8.25% interest to RBI when it borrows money from RBI. Now this rate has been reduced by 50 basis points. So banks now need to pay interest to RBI, if it borrows from RBI, at the rate of 7.75%. This is known as Repo Rate.
Client: Can fixed deposit rate be affected by reduction of Repo Rate?
Coach: Of course. If banks get money from RBI @7.75%, why will banks pay higher interest to you and me? One year FD rate is already revised by many banks and it is equal to or very close to 7.75%.
Client: But as now banks are getting money at a cheaper rate, then they should reduce the loan interest rate i.e. passing on the benefits it receives.
Coach: Correct. They should. And on that hope market is cheering. If companies get loan at a cheaper rate, they will likely to expand their businesses. That will create more jobs, more income and boost the economy.
Client: How is inflation linked to this?
Coach: See, when loan becomes cheaper, people tends to borrow more. That means people will have more money to spend. This will increase the demand for goods, and if supply does not increase to match this demand, then prices will increase.
Client: So there is a chance, that inflation may rise also?
Coach: Well, yes. But inflation depends on many other factors as well, like production (industrial and agricultural), manufacturing, export – import, foreign currency movement etc. So inflation may increase or may not.
Client: One last question. Like we deposit our money with banks, can banks also deposit their money with someone?
Coach: Yes, they can deposit with RBI and earn interest too. This interest is typically 1% less than the repo rate. This rate is known as Reverse Repo Rate.
Client: Great! So now I understand CRR, SLR, Repo Rate, Reverse Repo Rate and their impact on deposit rate, loan interest rate and on inflation. Thanks.
Coach: Welcome!
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