Learn How To Fish
- Thread starter VJAY
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I posted about DVERL in my earlier posts itself....So please without understanding its logic not use everywhere this concept....New traders start basic rules then slowly step by step use other some advanced things which I shared in this thread otherwise your doubts/confussions never ends...IMO i not left anything in this thread for this method ...so before asking Querries about basic doubts please go through again & again those posts ...many doubts cleared for other members which will help to you too....
http://www.traderji.com/community/threads/learn-how-to-fish.104340/page-12#post-1217401
http://www.traderji.com/community/threads/learn-how-to-fish.104340/page-12#post-1217401
Exhaustion move/Bar (words & chart used of taiki bro)
it can be a trend or can be a sharp move.. But there should be sharp buying/selling seen in background which needs to get exhausted. And such exhaustion comes in form of another sharp bullish/bearish candle at the very top or bottom of the trend. This is a trap in its best
it can be a trend or can be a sharp move.. But there should be sharp buying/selling seen in background which needs to get exhausted. And such exhaustion comes in form of another sharp bullish/bearish candle at the very top or bottom of the trend. This is a trap in its best
Bumping here Some GEMS of ST da....real guru & real successfull trader
We do not know when we take a trade whether it will be a big profit trade or a scratch trade. Our method should be such that it gets us out of such trades with minimal damage.....and stay with our winners once we get one till the market shows signs of trend change, with proper MM and adds....
Our distribution of profits/losses should be a few small profit/scratch trades, a few small loss /scratch trades , a few big profits trades ...but NO big loss trades ( this our exits should ensure )
We should take all trades with the belief that they will be big winners.....but manage all of them with extreme care in such a way that any of those trades can loose and we don't want a single big looser.......
All the above is not easy....but we need to work towards achieving this goal....
We do not know when we take a trade whether it will be a big profit trade or a scratch trade. Our method should be such that it gets us out of such trades with minimal damage.....and stay with our winners once we get one till the market shows signs of trend change, with proper MM and adds....
Our distribution of profits/losses should be a few small profit/scratch trades, a few small loss /scratch trades , a few big profits trades ...but NO big loss trades ( this our exits should ensure )
We should take all trades with the belief that they will be big winners.....but manage all of them with extreme care in such a way that any of those trades can loose and we don't want a single big looser.......
All the above is not easy....but we need to work towards achieving this goal....
Another GEM of ST da....about supply/demand
If you see any chart, throughout the day bulls and bears are in constant fight to get hold on the prices..so at some point you will actually see the balance of power changing hands from bulls to bears and vice versa. At some points bulls put all their strength to work but unable to move price up by a fraction and there the demand is exhausting and supply gets into the market and the bears take over at that point...same happens when bears loose their power and bulls gain control and supply exhausts and demand enters the markets...for alert traders they can actually see this happening.
If you see any chart, throughout the day bulls and bears are in constant fight to get hold on the prices..so at some point you will actually see the balance of power changing hands from bulls to bears and vice versa. At some points bulls put all their strength to work but unable to move price up by a fraction and there the demand is exhausting and supply gets into the market and the bears take over at that point...same happens when bears loose their power and bulls gain control and supply exhausts and demand enters the markets...for alert traders they can actually see this happening.
Many are always ask querries when they not get entry in some moves like is it okey here we enter? etc... ...then they start to apply some rules of diferent method with method which they are trading now to capture that trade ...this things go on....then at last they have becomes no method and start to loose trades ...their mind not able to stable...its seems like start of they never ever able to follow one method as they have many rules of diferent methods to manage and they themselves wander in a jungle.........
a beautifull words from ST da .....
people want to catch all the turns of the move and they want some system for that. That is not possible...on system you can catch only 50 % of the moves ie moves in line with that system. For catching all the moves one needs to be a Michael Jackson or Birju Maharaj ( great Kathak dance guru )of trading....and such genious dont need any system...they are system themselves.
a beautifull words from ST da .....
people want to catch all the turns of the move and they want some system for that. That is not possible...on system you can catch only 50 % of the moves ie moves in line with that system. For catching all the moves one needs to be a Michael Jackson or Birju Maharaj ( great Kathak dance guru )of trading....and such genious dont need any system...they are system themselves.
Again sharing here GEM of ST da which helped me......
Trading Parabollic / verticle Moves
Following is the reply to a question of how to trade parabolic moves.....do we always fade them ? asked in another thread....sharing here as many may find it useful.
All parabolic moves are not the same and they are to be traded differently depending on where such bar comes in the total trend.
1) Suppose the market has been trending down for many bars, it has printed a few large range down bars.....a prolonged downmove.....and now the move gets verticle and prints a huge bearish bar which opens and closes at the extreme endswith big volume, no tails.....expect this to be an exhaustion or capitulation and the market is ready for reversal to uptrend. Trade accordingly.
2) Suppose the market has just reversed its earlier trend,and it prints a big bar which probably breaks a few pivot highs....that is a trend bar.....always expect this trend to continue for long time and trade in the direction of the breakout/breakdown.
3) Market has just reversed the trend and it goes into small consolidation or sideways movement with low volumes and it breaks out of that range with a wide range bar......it will never be an end of the trend...it will continue in the direction of the breakout...trade from that direction...
Hope the above helps you to trade such large range bars better.
Trading Parabollic / verticle Moves
Following is the reply to a question of how to trade parabolic moves.....do we always fade them ? asked in another thread....sharing here as many may find it useful.
All parabolic moves are not the same and they are to be traded differently depending on where such bar comes in the total trend.
1) Suppose the market has been trending down for many bars, it has printed a few large range down bars.....a prolonged downmove.....and now the move gets verticle and prints a huge bearish bar which opens and closes at the extreme endswith big volume, no tails.....expect this to be an exhaustion or capitulation and the market is ready for reversal to uptrend. Trade accordingly.
2) Suppose the market has just reversed its earlier trend,and it prints a big bar which probably breaks a few pivot highs....that is a trend bar.....always expect this trend to continue for long time and trade in the direction of the breakout/breakdown.
3) Market has just reversed the trend and it goes into small consolidation or sideways movement with low volumes and it breaks out of that range with a wide range bar......it will never be an end of the trend...it will continue in the direction of the breakout...trade from that direction...
Hope the above helps you to trade such large range bars better.
When Lance Beggs says - people trade the shadow and not the reality ?
What does he really mean ?
Explanation by ST da..........
He means traders trade price patterns, indicators etc assuming that this is the real market......but this is a shadow and we keep trading shadow without understanding the cause or the reality which has caused supply- demand imbalance which is creating the shadow...so he says understand the reality or the cause which is causing the market move and not just concentrate on shadows or price patterns, indicator OB/OS etc.....so if the reality is strong enough to create supply / demand imbalance, then the shadow trading meaning if the fundamentals of the market has changed to bullish, trading on shadows like expecting to fill the gap, expecting correction , expecting exhaustion in overbought area etc wont work and market will keep going up and trading on shadow will infact mislead the traders....
So according to Lance Beggs, we must understand what is the cause ( reality) and then trade the shadows( Price patterns etc ) togather with reality and not the shadow in isolation.
What does he really mean ?
Explanation by ST da..........
He means traders trade price patterns, indicators etc assuming that this is the real market......but this is a shadow and we keep trading shadow without understanding the cause or the reality which has caused supply- demand imbalance which is creating the shadow...so he says understand the reality or the cause which is causing the market move and not just concentrate on shadows or price patterns, indicator OB/OS etc.....so if the reality is strong enough to create supply / demand imbalance, then the shadow trading meaning if the fundamentals of the market has changed to bullish, trading on shadows like expecting to fill the gap, expecting correction , expecting exhaustion in overbought area etc wont work and market will keep going up and trading on shadow will infact mislead the traders....
So according to Lance Beggs, we must understand what is the cause ( reality) and then trade the shadows( Price patterns etc ) togather with reality and not the shadow in isolation.
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