Indicator-Free, Stress-Free Trading
- Thread starter .Pride.
- Start date
Tanhadil1984,
In short, .Pride has given 4 patterns around RED LINE. The question is What should be this red line ? Where should we draw the red line on chart ?
My answer was to use, yesterday's high price as this red line cause in my opinion, yesterday's high is important price level watched by big money. (if market is weak then we can also use yesterday's low price as this red line).
Hope it is a bit clear now else Can please highlight the part that you couldn't follow from my post and I will try to explain it further.
happy trading
In short, .Pride has given 4 patterns around RED LINE. The question is What should be this red line ? Where should we draw the red line on chart ?
My answer was to use, yesterday's high price as this red line cause in my opinion, yesterday's high is important price level watched by big money. (if market is weak then we can also use yesterday's low price as this red line).
Hope it is a bit clear now else Can please highlight the part that you couldn't follow from my post and I will try to explain it further.
happy trading
Wow... :thumb:I am a newbie and I have been looking all over for a PA based strategy (as the only data I trust is price), and this one looks pretty good. Specially the point about defining the S/R lines, its just gold in my opinion. As Pride mentioned, S/R is highly subjective and hence open to all kind of interpretations. Consequently I had a tough time getting my head around this concept. But Pride`s reference points have been very useful for me. Thanks and waiting for more. I will ask questions when I have understood enough to ask some intelligent ones 
Thanks Pride...
Which timeframe suits well for this strategy? Intraday or daily or weekly?
For intraday we can mark yestersday's high/low...What about for finding this pattern for daily chart? what should be used ? either last week high/low or last month?
Can anyone tell what is the corresponding indicator for volume POC in "icharts.in" charts????
Thanks,
...summasumma.
Which timeframe suits well for this strategy? Intraday or daily or weekly?
For intraday we can mark yestersday's high/low...What about for finding this pattern for daily chart? what should be used ? either last week high/low or last month?
Can anyone tell what is the corresponding indicator for volume POC in "icharts.in" charts????
Thanks,
...summasumma.
posting it here as well as many might not go to the first page again...
--------------------------
ok..i'm back
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
--------------------------
ok..i'm back
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
posting it here as well as many might not go to the first page again...
--------------------------
ok..i'm back
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
--------------------------
ok..i'm back
Now that we know the patterns, lets move to the "Red Line".
The most obvious thing is that this line should be some kind of support or resistance level.
However, S&R levels are very subjective and each person will mark different levels on the same chart.
To eliminate this inconsistency, we will use three pre-determined levels.
1. Yesterday's High
2. Yesterday's Low
3. Yesterday's Volume Point of Control (POC)
The first two are minor S&Rs while price definitely has some reaction when it reaches the POC.
Volume POC: It is the price at which maximum volume was traded. This is a very important level and represents accumulation/distribution by large players or the price at which most of the participants find maximum value. So whenever price reaches this level the next day, there is bound to be some reaction.
Most charting applications support market profile/volume profile. Amibroker has the "Volume by Price" indicator which works just fine.
Eg. Friday's POC is at 5530.
So, now you know what to do.
Step 1. Draw yesterday's high, low and volume POC.
Step 2. Wait for price to reach these levels and form one of our patterns.
Step 3. Make money
Money Management.
1. Your reward should be a minumum of twice the size of your risk.
2. Try to enter in such a way that your stoploss is on the other side of the High/Low/POC.
3. Trail your stoploss and move it to breakeven soon.
4. Do not risk more than 1% of your equity in a single trade.
Some Advice
1. You may not get an opportunity to trade every day. That is fine. Please do not try to take unnecessary postions just because you are bored.
2. You can track multiple stocks/futures. This way, there is a higher probability of getting a good setup.
3. The markets will be there tomorrow too. Do not try to run after a trade. If you missed a good entry, wait for the next one.
4, These patterns appear in all time frames.
5. Patterns I and III are more than enough to make a decent living.
Disclaimer: You will need a lot of screen time and practise before you will be able to consistently profitably trade these patterns. As with profits, only you are responsible for the losses you make.
any doubts?
Dear Pride,
now no doubts..
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