Namaste - My Learning of Trading in Nifty
- Thread starter crown
- Start date
Here are two answers (both are my personal, may vary from person to person).
1.
I am giving one hypothetical example for your understanding. Say I am bearish on market now at 5350 and I want to build short for target of 5000. For this I will give buffer of 200 points, so I will make short between 5350-5550 with 5650 SL. I will short one lot NF at 5350 and hold my position coolly and will observe how market is behaving. Say 5450 comes, I will short one more lot. After doing this, market even does not stop, you understand that market can go to 5550, we can write 5400 PUT or even go long in MINI NF with the same volume as current position and at 5550 I will exit my hedge and add last bit of NF short. Over all it would be my short position at 5470 in the most difficult situation. If market goes in favor, you would be sitting on profit. then if it comes to 5100 and your target is 5000. In stead of waiting for 5000 target, you can write 5100 PUT at 100 rs, which you would secure your 5000 target.
Please note this is a completely hypothetical example. Wrote for your understanding.
2.
You can see NF range if it is close 100, then it is good for day trading!
1.
I am giving one hypothetical example for your understanding. Say I am bearish on market now at 5350 and I want to build short for target of 5000. For this I will give buffer of 200 points, so I will make short between 5350-5550 with 5650 SL. I will short one lot NF at 5350 and hold my position coolly and will observe how market is behaving. Say 5450 comes, I will short one more lot. After doing this, market even does not stop, you understand that market can go to 5550, we can write 5400 PUT or even go long in MINI NF with the same volume as current position and at 5550 I will exit my hedge and add last bit of NF short. Over all it would be my short position at 5470 in the most difficult situation. If market goes in favor, you would be sitting on profit. then if it comes to 5100 and your target is 5000. In stead of waiting for 5000 target, you can write 5100 PUT at 100 rs, which you would secure your 5000 target.
Please note this is a completely hypothetical example. Wrote for your understanding.
2.
You can see NF range if it is close 100, then it is good for day trading!
You have to understnd one thing very clearly crown, before taking any deicision in trading. - "TRADING IS NOT ABOUT READING WHOLE LOT OF BOOKS, LEARNING INDICATORS, PATTERNS ETC". If that is possible then just check and google on Trading and see how much material and books do you get. Why isnt everyone profitable then? Why is it then we still practically believe that market has 90 percent of losers and 10 percent of winners?
Somethings take time to grasp, and market is one of them. You will face ups and down, will want to quit out of losses, and face very difficult and frustrating moments. And with every moment you will understand where you did wrong. And you will explore more about your mistakes.
IMO rather then studying and reading so much, try to understand one thing at the time. If you want to learn patterns, then learn patterns only for the start. See the pattern formation, see the neckline breaks and compare the volume actions at the key points. If you want to do it options+options or futures+futures then concentrate on that only. If you want to go with indicators, then choose one which you understand.
Reading hell lot of books and material will confuse you at the moment. I dont say that it wont help you. It definitely will. But not at the moment. You will read it today and will get confused. Some day you will gain understanding in market over time and you will just look into the past to acknowledge that what you read was totally right, but you couldnt just apply it. Problem is that when we are new to market, we read alot of thing, grasp so much rules, but our mind is not adaptable to apply that much rules at a single chart. We miss some rules, cause we are not adapted to the system. This thing gets developed over time. So chill.
As an initial advice. Never forget to place stoploss. That will help you stay longer in market. And dont give up.
Hope it helps.
take care
Somethings take time to grasp, and market is one of them. You will face ups and down, will want to quit out of losses, and face very difficult and frustrating moments. And with every moment you will understand where you did wrong. And you will explore more about your mistakes.
IMO rather then studying and reading so much, try to understand one thing at the time. If you want to learn patterns, then learn patterns only for the start. See the pattern formation, see the neckline breaks and compare the volume actions at the key points. If you want to do it options+options or futures+futures then concentrate on that only. If you want to go with indicators, then choose one which you understand.
Reading hell lot of books and material will confuse you at the moment. I dont say that it wont help you. It definitely will. But not at the moment. You will read it today and will get confused. Some day you will gain understanding in market over time and you will just look into the past to acknowledge that what you read was totally right, but you couldnt just apply it. Problem is that when we are new to market, we read alot of thing, grasp so much rules, but our mind is not adaptable to apply that much rules at a single chart. We miss some rules, cause we are not adapted to the system. This thing gets developed over time. So chill.
As an initial advice. Never forget to place stoploss. That will help you stay longer in market. And dont give up.
Hope it helps.
take care
Rajput bhai
Thanks a ton and million thanks again.
You are absolutely correct, too much learning might have been the reason for my confusion.
I have tried to put my hands on indicator building and I made on indicator for Nifty only.
The indicator is based upon CCI and your Turtle pivots. Actually, I am trying to follow you.
I will be posting my results and observations. As you have advised, I have chosen only one indicator i.e. CCI and pivots because for intraday purpose, it is really not possible for me now to place trendlines and patterns and act immediately. Pivots will take care of many patterns.
Thanks again Rajput bhai for your kind help and guidance.
And thanks to all big brothers too.
Thanks a ton and million thanks again.
You are absolutely correct, too much learning might have been the reason for my confusion.
I have tried to put my hands on indicator building and I made on indicator for Nifty only.
The indicator is based upon CCI and your Turtle pivots. Actually, I am trying to follow you.
I will be posting my results and observations. As you have advised, I have chosen only one indicator i.e. CCI and pivots because for intraday purpose, it is really not possible for me now to place trendlines and patterns and act immediately. Pivots will take care of many patterns.
Thanks again Rajput bhai for your kind help and guidance.
And thanks to all big brothers too.
This is what I am observing right now on Nifty chart
Uploaded with ImageShack.us
As per the 3 minute line chart, there are two price pattern formations in the Nifty.
One is Head and Shoulder Formation, which is very evident on rising chart. But head and shoulder formation is not yet complete. In case Nifty breaches 5380 tomorrow, the Head and Shoulder formation will be complete. To be on more safe side, I have also placed a support line around 5375. This support line has been touched four times, which also makes it dependable. Therefore, in case Nifty goes below 5380, I will be ready to short Nifty Future and the moment it breaks 5375, I will be shorting it. The stoploss for short will be 5380 or 5390 as per the situation at that time on the basis of momentum indicator, which is working moderately good right now for me. The targets for short will be 5340 and 5300.
In case, Nifty goes upside and breaks 5385, it will be a triangle breakout towards upside, which will be confirmed with the violation of resistance line placed around 5390. So if Nifty goes up and violates 5385, I will be ready and the moment it breaks 5390, I will enter long for a target of 5400-5420. The stop loss will be between 5380-5370, as per the situation at that time.
All big brothers are requested to kindly give their valuable comments on my strategy.
Uploaded with ImageShack.us
As per the 3 minute line chart, there are two price pattern formations in the Nifty.
One is Head and Shoulder Formation, which is very evident on rising chart. But head and shoulder formation is not yet complete. In case Nifty breaches 5380 tomorrow, the Head and Shoulder formation will be complete. To be on more safe side, I have also placed a support line around 5375. This support line has been touched four times, which also makes it dependable. Therefore, in case Nifty goes below 5380, I will be ready to short Nifty Future and the moment it breaks 5375, I will be shorting it. The stoploss for short will be 5380 or 5390 as per the situation at that time on the basis of momentum indicator, which is working moderately good right now for me. The targets for short will be 5340 and 5300.
In case, Nifty goes upside and breaks 5385, it will be a triangle breakout towards upside, which will be confirmed with the violation of resistance line placed around 5390. So if Nifty goes up and violates 5385, I will be ready and the moment it breaks 5390, I will enter long for a target of 5400-5420. The stop loss will be between 5380-5370, as per the situation at that time.
All big brothers are requested to kindly give their valuable comments on my strategy.
And, this is what I am observing in EOD Chart of Nifty
Uploaded with ImageShack.us
Thanks a ton to Rajput bhai because it is his Turtle Pivot and CCI which I have used and slightly adjusted.
As can be seen in the chart, there is a Pivot Breakout on the upside. And as per Rajput bhai (I am depending a lot on him), Pivot breakouts continues at least two candles, which in this case will be two days. So, I can expect upside in Nifty for next two days. Second noticeable thing is MacD positive crossover. Third supportive thing is the volume. CCI being above 203 is a bit of concern; but it can be dealt with very careful watching of Nifty moves tomorrow. At least, I am having both options open for tomorrow and can easily go short, in case things don't work for upside move.
Weekly chart has already giving moderately positive signal for going long.
Request to all:
Please guide me.
Uploaded with ImageShack.us
Thanks a ton to Rajput bhai because it is his Turtle Pivot and CCI which I have used and slightly adjusted.
As can be seen in the chart, there is a Pivot Breakout on the upside. And as per Rajput bhai (I am depending a lot on him), Pivot breakouts continues at least two candles, which in this case will be two days. So, I can expect upside in Nifty for next two days. Second noticeable thing is MacD positive crossover. Third supportive thing is the volume. CCI being above 203 is a bit of concern; but it can be dealt with very careful watching of Nifty moves tomorrow. At least, I am having both options open for tomorrow and can easily go short, in case things don't work for upside move.
Weekly chart has already giving moderately positive signal for going long.
Request to all:
Please guide me.
Last edited:
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