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MY STYLE - BLOG
During the last three months we have had our downs where range bound periods tended to make mince meat of our trades. Conventional wisdom suggests that one stays out of ranging periods. But there lays a story. Ranging periods like trends tell us that there is indecision. Most professional traders give up and ignore ranging periods. We dont. As ranging periods tell us about changing market sentiments. If we can capture that sentiment, trades can be more effective.
And we have done exactly that! We have refined our methods and done immense original automation around our core trading methods, that trading time is focused on observing market sentiment alone. We are working on a sentiment index and will share information around that soon. And all of that is simply around price action. We have published indicator less trading concepts, which are again cutting edge approaches which approximate the extremely effective "tukka" or chance/gut feel traders. Again price is king in this approach. We have dissected the point and figure trading approach to superimpose that on normal time charts and then reverse engineer the original concept to add features that combine the best of both approaches, without making a mess of them. Check the Point and Figure knowledgebase in the technical analysis section.
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This section has a wealth of information on popular trading methods and a lot of original work output from our own research methods. An example is that of the trade simulator which can be used in many innovative ways by a non tech savvy trader to test their trading ideas or just to journal their trading. A first has been that of demonstrating how two or more different scripts can communicate with each other, therefore allowing great flexibility to separate different actions within trading into "common" services.
With the year now ending, an interesting realisation during our trading this month is the subtle changing of the market.
If you are a swing trader, you expect that higher highs and lower lows generally indicate an uptrend or a downtrend respectively. In ideal conditions, yes, they do, but the markets are no longer ideal with "algo"rithmic programmed trading, that try to fool small time traders who use this and other similar methods. What these algo program trends show are higher highs and lower lows together! But there is a secret, its a pattern within a larger pattern, which continues to be well behaved. The question then is judging the shape of the larger pattern which is well behaved and filtering out the noise at the micro level. This change has made intraday trading more complex, particularly Nifty trading. Volatile indices do not suffer this symptom so much, but then these are already high risk instruments because of the volatility. What do you do then? Several answers: - avoid trading in the periods when the market has these characteristics. - Fine tune your risk/money management system. - Avoid the low risk reward trades, where rewards are nebulous, small or doubtful. Look at price action and volume that indicates the development of a significant trend.. since the old adage, "trend is my friend: is still the most reliable way of playing these choppy markets. The challenge now is now simply being able to filter out the noise. While the mentoring and trading side of this site has been doing well, I decided to give back to the trading community by helping newbies and experts to look at new approaches to trading. In my search for better ways of trading, I have read the approaches of masters like Gann and others and tried to infuse my practical ideas for simplified trading. I also discovered that its nearly impossible for a newbie to get the ride guidance for starting his or her journey into Technical Analysis. Thats the birth of the Learning section, where I have consolidation information and knowledge from different sources into one basic structure, which will help learners to move forward.
The TA sections are also supported with videos and scripts which can be readily used by the visitors. My analysis platform is Amibroker, which is quite popular in the trading community. I have added a library section for significant and unique scripts which are available to everyone. |
AuthorAbnash Singh, Am a Trader helping small traders to realize their dreams. Archives
October 2017
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