Stop getting stopped out of trades by stoploss hunting with ATR

Stop getting stopped out of trades by stoploss hunting with ATR

There no worse feeling than setting a stop loss, entering a position, and having the market hit it before moving in your chosen direction. I’ve been there, and it is one of the most upsetting things that can happen in trading. In the long run, it will substantially impact your profitability and confidence in your plays. Here lets see to a better stop loss by taking one of the most important aspects of trading into account of volatility.

What is wrong with a fixed stop loss percentage or rough calculation?

Using a fixed stop loss like 10–20% for a asset is dangerous because volatility is different across different assets. … Read the rest

Trading with volume profile POC as support and resistance

Trading with volume profile POC as support and resistance

This method to find High Probability Support and Resistance Levels from volume.

The ideas of trading with support and resistance levels are very vastly used. chart patterns and predicting where price action is taking place and then taking them into which direction is very important. Favourable trades are best place where we have favourable Risk and reward ratios which is very easy at support and resistance.

How to do actually find a strong POC?

The first step on what we look for is a strong uptrend or downtrend that is with very good momentum. we can see one identified in the rectangle on the chart below. There is strong volume here … Read the rest

Participant wise daily data Open Interest- know where money is flowing

Index(Nifty/Banknifty/NiftyIT) Data OI Analysis as per participants below

First, Open Interest in Cumulative OI in futures is

Participant wise daily data Open Interest

in pdf is given here oi behaviour with coi futures

we are only intrested in days where there price movement up or down. Together with futures coi gives idea what is going to happen. 6 scenerious we can trade below…

  1. say futures coi is increase with price then long builtup is formed.
  2. price down with futures coi increase short builtup
  3. price up and coi down shortcovering postions
  4. price down and coi down long unwinding positions.
  5. no change is coi and price up then a quick upmove is posible
  6. no change in coi and price down then quick downmove is possible.

Index Futures participant

… Read the rest

Participant wise daily data Volume- know where money is flowing

Index(Nifty/Banknifty/NiftyIT) Data Volume Analysis as per participants below

Index Futures participant wise Volume data results

Futures is simple, if more long than bullish and if more net negative then bearish. Compare it to previous historic data…

Index Options partcipant wise Volume data results

Simple points: If FII are postions are

  1. positions are positive on Call side then bullish
  2. Positions are negative on Call side then bearish (Short side on Call)
  3. Positions are positive on Put side then bearish
  4. Positions are negative on Put side then bullish(short side on put)

If mixed signal is generated then compare bullish numbers to bearish numbers and see if there is any trend expected or not.

Stock Volume Data Analysis as per participants below

Stock

… Read the rest

What is probability and how it works in Stock Market?

Probability theory:

A field of mathematics concerned with the examination of random processes is known as probability theory. A random event’s outcome cannot be predicted before it occurs, although it could be any of multiple possibilities. The final result is said to be dictated by chance.

Now how does that apply to stock market?

A Stock/index has three probibilities that is

  1. it can go up that is increase
  2. it can go down that is decrease
  3. it can remain around same price

So, there is 33.33% probability of a event above happening.

Now, how does this apply to stock/index options?

Call option and put option have 33.33% of success, so that is very clear to anyone.

Stock remaining around same price … Read the rest

What is open interest OI and why is it important?

 

What is open interest OI and why is it important?

 

When doing any stock analysis then Open Interest of that stock plays a good way of confirmation of what is to happen next. Is the stock operator going to take stock up or down?

What are the basics and Rules? 

What is Open Interest?

Open interest is the total number of outstanding futures and options (F&O) contracts at any point in time.

How Open Interest is Calculated?

For example, if trader A buys 1 futures contract from trader B(who is the seller), then open interest of that scrip rises by 1.
If another trader C say buys 2 futures contracts of the same scrip from trader D, then … Read the rest

BANKNIFTY NIFTY ORB 15 MIN +RSI +ADX SIMPLE STRATEGY

BANKNIFTY NIFTY ORB 15 MIN +RSI +ADX SIMPLE STRATEGY

Today I present simple strategy for earning good Risk Reward strategy.

We all know first 15 min big bulls and big bears fight forming a Range in first 15 mins. This 15 min ORB gives range which on breakout has a high probability of continuation on that side rest of the day.

 

Over the years this breakout also has some false breakout with not enough juice to continue the trend.

So two indicators simple ones will be used here.

1. RSI must be above 50 for buy breakout to be successfull but not above 80 for overbought scenerio and below 50 for sell breakout to be successfull but not oversold … Read the rest

Intraday EMA + Supertrend 5 min strategy

Intraday EMA + Supertrend 5 min strategy

Now this strategy is very simple and effective. We need a trending stock or index first not in a range bound.

1. 5 min timeframe

2. Supertrend with setting (5, 1.5)

3. Ema 48 period with High for plotting

4. Ema 48 period with low for plotting

 

Strategy is simple:

 

1. Ema forms a channel, when stock(trending stock not sideways) above channel we look for buy entries and when below we look for sell entries.

2. We only take buy entries when a green candle touches supertrend support line and  above EMA channel.

3. We only take sell entries when red candle tocuhes supertrend  suppport/resistance line and below EMA channel

4. … Read the rest

Increase success rate of ORB 15 Min

 

Increase success rate of ORB 15 Min

  1. Use open high low. If open = low and enter when it crosses high and if open = high then enter when it crosses low.
  2. Use CPR strategy for narrow range cpr stocks and jackpoy cpr stocks for more accuracy.
  3. Selects NR4 or NR7 stocks with inside candle breakout of high and low of NR7 Or NR4 candle with ORB.
  4. Stocks that open above previous day high(buy) or previous day low(sell)
  5. On daily chart if stock is above 10 ema then go for buy side and if less than 10 ema then sell side. (Don’t go against major trend.)
  6. When you select stocks make sure that ADX is more than 40 which
… Read the rest