Thursday, August 4, 2016

Trailing problems - Day Trading: August 04, Intraday

Storm and calm

I stayed aloof of the morning volatility.... patience, patience, patience is a virtue.... Took my entries during the calm following the storm, with a lot of patience. I have changed my trailing stop method, but this one whipped me too into bad results.

The perfect entry

So, after the morning dip to 8550 (ohh, what a miss. schade), and the pullback to 8600, there immediately followed a neat Price Action set-up for short (marked on chart). I decided to wait for a better set-up, which I defined as one more pullback to 8600 and higher volume before falling. That perfect trade occurred, but you know there is nothing like perfect. So, I soon made a loss. But, as they say in Venezuela, lightning always strikes twice. As soon as there was a higher volume Pin Bar above 8600, I had my next perfect entry. This one moved, but my Trailing Stop got hit.

Nifty M3 Price Action Chart

Trailing problems

Ignoring yesterday, on all the other days of these series, I have been able to catch (or at least identify) the top before the major down move of the day. Even yesterday, I can claim that I did identify the top... only decided not to act there. Despite catching the tops, I have not been able to maximize points because of poor trailing. I decided to trail differently today, but the results were no different.

Lightning struck twice again

The third trade was the imperfect entry. I was in a hurry to re-enter the down move, and did not wait for higher volumes on the M1 chart. Heck, I did not even wait for the bar to complete. Also, I thought that price had traded in the 8605-8587 band for too long, and there was pressure to go down - just another reason that I invented to go short. Immediately, a higher volume bar took out my Stop Loss. But it was a higher volume bar, good enough for me to re-enter at the same point... another perfect entry. All that these trades did was to reduce the points I earned. Trailing on Pivot Highs would have worked great today.... but who knows about tomorrow?

The bounce

There was a bounce without even testing 8550/Low of the Day. I was not happy, but the big green bar and the Price Action that followed was tempting, and I placed a long trigger there. Later cancelled it. When the price came back to that point, and did a small wriggle there, I entered long. This was another imperfect/impatient trade, but I got some points at auto-square-off.

Spot Price

The Spot 8550 was about 20 points above the last entry. I probably would not have entered if it was closer. During the day, Spot 8550 moved from below Previous Day's Close to above the 8590 Pivot Low area.


1. If these notes do not not make sense to you, it's because they are mainly for my personal consumption. These notes make sense to me, and at some point I hope that my writing improves enough to make sense to others...

2. The volumes that I talk about in this post can be seen better on the M1 chart.

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