I will give today’s example (1st July 2016)
When Market opened you can see that Nifty was up and all the sectors were up . I selected metal sector which is up nearly 1%, then I looked at top movers in which I selected VEDL
VEDL right from the starting is in uptrend but I could not utilise this as I was not present on terminal due to some important work. It went from 134.50 to 137.50 within 10 mins.
I then noticed that it is not moving any further hence decided it is gonna retrace to some level so shorted it (Bracket order) @ 137.30 with strict stoploss of .10 which got triggered. but again I short it @ 137.45 where I got able to capture .45 points as it retraced to 136.70
In this trade I got Rs 2100 as profit after deducting Brokarage Rs 300 (approx) my profit is Rs 1800.
For observe keenly what is support level or resistance level for intraday and try to sell at resistance or buy at support.
and also see that if breakout happens and you could not participate in it, then wait, it will certainly retrace for checking retracement I rely on candle formation like morning star, shooting star etc.
I hope this explanation can help you understand what I do.
Hi, sir am new in trading, the above given calender time table is nice. can i follow this on all 240 trading days in a year? and can i also earn Rs.1500 everyday?? Can you please explain price action based on price?
i think 1min can give even earlier than 2min
Hi sooraj Mishra , thanks a lot for this simple and superb strategy, for above mentioned trade plese share the Bracket order settings for Buy price, Square off price (tick/Absolute ), stop loss (tick/absolute) and trailing stop loss vbalue ,Thanks in advance
Hello,
you have metioned you are using some indicator for signals and using bracket order, as with chart signals bracket order is not possible to place. can you please guide me how to place BO from signals generated? i do use bracket order for margin benfit , it is very good feature provided by zerodha.
Hi bunty,
This time table would not be accurate for all 240 days. when events like RBI Policy, Quarterly results etc happen then you will see volatility even during any time of the day.
Yes if you manage your risk properly then you can definitely earn 1500 a day, I suggest do not fall pray options rather study futures and use them in Bracket order.( http://zerodha.com/z-connect/tradezerodha/zerodha-trader-software-version/bracket-orders-trailing-stoploss-sl ) use above link to understand Bracket orders.
What I follow in price action is candle sticks behavior, You can study it in Technical Indicators in Zerodha Varsity. co relate Candle stick with support and resistance.
for example if you find Bullish morubozu near support area then you can go long in this trade it is more likely to go up.
yes 1 min chart gives earlier signals, I personally prefer 2 min charts as it gives less false signal comparing to 1 min charts.
Hi Amit,
you are asking me about my trade with VEDL right? My shorting price was 137.45. I kept strict stoploss of .10 because it was counter trend trade which is risky. and kept target buy @ .45. My target was small because VEDL was in uptread and any time it could bounce back after retracement. it was scalping so no trailing stoploss needed.
I prefer absolute over ticks.
Hi Giri,
Friend I dont use any indicator. For gitting entry signals I observe charts with candlestick formation and with volumes. Indicators never create price, it is demand and supply that does.
For exmaple if any stock is in uptrend then you see that dojis are created, or comes bearish harami, then it is an indication in itself that the stock is going to correct. I just consider candlestick, support resistance, and volumes.
I can tell you what I do with bracket order.
suppose I selected Tatamotors to trade then I keep 2 min chart and BO window open. when it crosses its day open ( if it is in uptrend) I place order keeping stoploss .20 to .30 below its day open price.
for buying place order above its current price and for shorting place order lower of its current price.
Hi Sooraj Mishra thanks a lot for the answer, my trading style is similar like you , but i prefer scalping with MIS margin, can you please share your indiacators and their setting,
Hi Amit,
I also started with MIS but later came to know that BO is much better than MIS as we can put stoplosses, targets and even trailing stoplosses in it. The placed stoploss or target can be modified as well. besides we get higher leverage. its like we are buying stocks of worth 4-5 laks with just 15000 in our trading account. I suggest practice with BO it will help.
I dont use indicatiors rather I depend on candlesticks patterns, support /resistance made for the day and volumes.
you know when we scalpe we dont have much time to use indicators because we may miss opportunity. and also Candlesticks give early signals than indicators. better manage your risk and trade we few things in mind.
Even from my experience I tell you the more indicators I applied the more loss I suffered. Depend more on price behavior it will help.
hi, its a nice strategy. i use MACD as an additional indicator. Rest things are same…
1, On what basis you select those 20 stocks?
2. If in different timeframe you get different signals like in 60 min you get buy signal but in 5 min you get sell signal then what do you do?
- 20 stocks list is on the basis of the daily price range which the stock gives, as we need range for daytrading.,the volume in that scrip,whether the scrip is within top gainers/losers earlier day,
- When 60 min is showing bullish breakout, we will take only long trades on 5 min so we will trade signals which are in synchronisation on both timeframes. Similarly when 60 min is bearish, we take all short trades in 5 min and ignore any long trades in that scrip.
Really appreciate it if you could answer all the below - very sound/simple strategy
- are all the positions closed intraday?
- will your stop loss order always be/under the breakout point or the swing point on 5 min?
- will you move the stoploss if 1st trgt is hit?
- what is the success rate according to you?
- Yes all positions closed intraday.
- Stoploss below small 5 min swing or pivot point below the breakout level.
- Yes after 1st target is met, move stoploss to 1 time risk above entry,so that if the market reverses we make profit atleast equal to risk taken on the remaining lot. and 2 times risk is made on first lot.
- Success Rate is high over 55-60 % because we are trading breakouts and momentum in both timeframes…
NSV - Appreciate your reply …([email protected]) - can you pls ping me on this email - as i have in detail queries on this and couple of other too. Hope sir that is not too much to ask.
Strategy is simple and good.
Hi… AlgoGeek your trading style is very good, But what about technical analysis strategy, you have not said about any strategy or not shared any backtest results in the above answer
As I have mentioned in above technical analysis is only to identify or catch the trend, and regarding the back-test results of strategies, there is nothing called as good or bad technical analysis or strategy, All has its pros and cons, it needs to be optimized,
let me explain you in brief, lets take a simple moving average crossover, when we keep on changing the combinations of moving average parameters and if we optimize, it will show you best results and maximum profit at one point. In simple words its like tuning the Radio, at one point of frequency it will give nice output.
So, no matter which technical or Quantitative or fundamental analysis we do, it needs to be optimized accordingly and the main strategy is to apply the best risk management and minimize the losses and maximize the Profits, that’s the Target.
Hello Algogeek,
I appreciate your logic. Every time we see the market or a particular stock it is obvious that if it has to increase, both volume as well as openinterest should increase, like you said. But when you have taken a long position and got to know you are wrong, depending on what strategy will you exit? Like is there any indicator/strategy you follow besides the logic of volume & open interest which can show your position is correct or wrong. I just want to know this.
@vjlakshman
exit will calculated be based on considering the risk factor for that particular stock, average high-low for historical data or using some Quantitative analysis ,
and like i said exit will not based on any technical analysis or any signals, it is purely decisions making based on how much risk i can take for that particular stock