Lets develop a trading system...!

[arihantm16]

I have a simple effective strategy. Say Nifty goes up for 2/3 days, then I sell if it comes below camarilla H3 and similarly for going long, if it has been low for 2/3 days, buy above l3. The reason is that generally after 3 days, mkt will pause due to profit taking.

 

[linkon7]

I have a simple effective strategy. Say Nifty goes up for 2/3 days, then I sell if it comes below camarilla H3 and similarly for going long, if it has been low for 2/3 days, buy above l3. The reason is that generally after 3 days, mkt will pause due to profit taking.

could you please put some screen shots... on how you play this.... sounds interesting...!
many will not understand camarilla H3... so do put in a few words on that also...

thanks...

 

[ram12bobby]

thanks for sharing

 

[linkon7]

TREND... how to trade it...!

TREND >> BASIC CONCEPT...

An uptrend is a series of HIGHER HIGHS and HIGHER LOWS.
A Downtrend is a series of LOWER LOWS and LOWER HIGHS.

Every charting book i read references an Up Trend or a Downtrend the same way. Unfortunately, it never occurred to me what they really meant and how do u trade it, until recently.

.

So, How do we trade this info.... How do we sell higher lows and buy higher lows?

Lets look at today's trade.
Nifty opens gap up and makes a first Pivot High (PH) at 4660 (A)
Then it makes the first Pivot Low (PL) at 4640 (B)
At this point, we need to see if prices break the resistance at (A) and makes a higher PH or succumbs to selling pressure and makes a lower PH. (If it makes a lower PH, then we sell it there). It makes a higher PH (C) at 4667 and then we can expect that the uptrend will continue and wait for NF to make a Higher PL (D) at 4659. This is the point we Buy....

It makes a higher PH (E) at 4679 and then makes a higher PL (F) at 4671. This is a point we buy...

It makes a higher PH (G) at 4691 and then makes a Lower PL (H) at 4662. We dont buy this as it is lower than the previous PL. This is a sign of trend changing. We wait and see if the next PH is lower than the previous PH. Next PH (I) is at 4676. This is the point we short...

the next PL (J) at 4636 is lower than the previous PL. we wait for the next PH (K) at 4682 which is higher than the previous PH. This is a sign of trend change again. the next PL (L) is at 4661 which is higher than the previous PL, so we buy at this point...

I was amazed to see the consistency of this system. We continue to follow the trend. Our SL remains the last PL or PH. We can trail the price till it is hit.

We continue to play the whole day and we sell lower PH and buy higher PL.

I have been following this system for the past 2 days and found it very effective....I am sure there are many who follow this system. Please provide more insights if you can...

 

[Mangafreakz]

Can u tell me a thing about Bid/Ask quantity and price. What if a Buyer wants to buy more than the Quantity under the Ask , wont he be able to buy that quantity ?

 

[Bimbo]

Re: TREND... how to trade it...!

Linkon can u post the AFL of your trading sytem.Is it the Kwikpop ?

 

[Rajadhiraj]

Hello Linkon

After making a higher pivot high when the price turns back and is in the process of printing a "Higher Pivot Low", at what point do you know for sure its been printed on the charts?

Won't you need to wait to confirm that the low is in, and as you wait for confirmation you will not be able to buy the PL but will be doing so somewhere above the lows.

What I suggest is divide the process in 2 steps

1. Setup
2. Entry Trigger

You already have your setup conditions in place

a. As soon as we get in a higher swing high (i.e. price moves above an earlier swing high) we are into Long setup
b. As soon as we get in a Lower swing low (i.e. price moves below an earlier swing low) we are into Short setup

Your first criteria for an entry would be you need to wait for a pullback (this is clear from your above post).

Now all you need to define an entry rule, where you can make sure the higher PL for long and Lower PH for short is in place.

Great going :clapping:

 

[linkon7]

Re: TREND... how to trade it...!

Linkon can u post the AFL of your trading sytem.Is it the Kwikpop ?

You can use any afl for pivots. In fact, you dont need any afl. Its totally visual.
We get so habituated to having an aid that to add 13 + 12, we need a calculator.

i can recomend you to search amibroker library for pivots... there are plenty of pivot afl there. Each has a different way of calculating the pivots. some wait for last 8-15 candles for confirming a pivot. Now where is the fun of knowing a pivot after 8 bars. Pivots look beautiful on hindsight.

Btw, did u try kwikpop? its got a huge collection of indicators, but the setup is confusing as hell. Plus requires a lot of discretion on which trade to take. I am yet to get my hands on a good tutorial on using their setup....

 

[linkon7]

Hello Linkon

After making a higher pivot high when the price turns back and is in the process of printing a "Higher Pivot Low", at what point do you know for sure its been printed on the charts?

Won't you need to wait to confirm that the low is in, and as you wait for confirmation you will not be able to buy the PL but will be doing so somewhere above the lows.

What I suggest is divide the process in 2 steps

1. Setup
2. Entry Trigger

You already have your setup conditions in place

a. As soon as we get in a higher swing high (i.e. price moves above an earlier swing high) we are into Long setup
b. As soon as we get in a Lower swing low (i.e. price moves below an earlier swing low) we are into Short setup

Your first criteria for an entry would be you need to wait for a pullback (this is clear from your above post).

Now all you need to define an entry rule, where you can make sure the higher PL for long and Lower PH for short is in place.

Great going :clapping:

True...
The logic is, we can never target to catch the bottom. But If I can trade in the direction of the trend, that's 90% of the battle.

Now the big question is entry, i think if i use a fast macd, say, 3,11,9 then the setup gives me a high probability, low risk, good risk reward ratio entry. The stop loss remains the assumed low.

The setup should look something like this....

 

[AW10]

IMO, price action is 2nd lowest lag indicator ( #1 is time and sales data coming from the order processing system of the exchange as and when an order is executed).
Any other technical indicator that u use (however fast it might be) will always be lagging. And shorter the timeframe we use for tech indicator, lower is the reliability of generated signals (i.e more false signals).

Backtest will certainly show u if the concepts works or not..

I use, higher TF based price action signal as setup to support price action signal on my trading timeframe (basically using the concept of multiple timeframes ) to trade.

Happy trading