Dear price actions traders
Let us encourage traders to try price actions by suggesting them one or two simple/easy price actions.
Can traders tweak price actions?
Can traders generate hybrid price actions from existing price actions?
Can traders create/invent totally new price actions?
Can traders try options trading (options buying) by using price actions?
Can price actions based options trading (options buying) help achieve six figure income?
We shall discuss all the above and more …for days and years to come…
NOTE : Introducing a price action suitable for Day Jobbers, systematically, in the following posts.
@adutta @11.11 @hencjjsjahhaj
What is trading skill?
It is the ability of timing the trade with complex support, because only timing can ditch the stoploss and only a complex support can withstand the complex nature of chart.
Quality of price action
My suggestion is the price action must satisfy the above two criteria as a quality check.
U shaped support JUST above yesterday’s high.
A bullish crossover of yesterday’s high is a good example of great timing.
U shaped support is a good example for complex support.
This is my simple/easy price action suggestion for traders to try and benefit.
(U shaped support in the middle of the chart)
Alternative for Hedging
The two primary attractions in hedging are:
- There is no stoploss concept in hedging.
- In-build edge for more probably to profit
So everyone dream of hedging one day.
Here I suggest an alternative for Hedging:
- Timing the trade makes traders almost forget stoploss.
- Complex support is an edge as strong as the in-built edge in hedging.
Only price actions can make it happen.
Price Action is Retail Trader’s Hedging
Hedging helps investors double their investment every year. But hedging is suitable for medium and large investments.
For retail traders price action helps them to aim at six figures income by trading options on index.
Configure Your Stoploss
Everytime when your stoploss hits then immediately turns back to trend, increase stoploss a bit.
Exit strategy must be the opposite of entry strategy.
In other words, if bullish signal is your entry point then bearish signal must be your exit point and vice versa.
Markets have several price actions and strategies if you wanna earn regularly.
Like today, The middle average price breakdown within the channel strategy worked in Nifty Intraday but it doesn’t work all time and you should know when to use it!
A trader has to know several kinds of price actions and apply the right one at the right time! Only experience can build this mindset.
Lemme share the channel strategy with average price line. Every trader has a different role here. Some like to buy at the channel outer lines while some like to trade the middle average line. The choice is according to a trader’s psychology and understanding.
Price Action For Day Jobbers
Backtest the strategy “U shaped support JUST above the yesterday’s high” on Index.
Set two alerts on your mobile trading app for breakouts/crossovers of yesterday’s high/low.
On alert take a 10 minutes break and enter trade in options (ITM) on index with 5% floating stoploss.
Atleast twice a month this signal can be seen on index chart. It has a profit potential of 10% per trade in an average. An investment of 10k can yield 2k per month.
Generic Vs Quality Price Actions
Google search shows all price actions which are basically generic or general price actions which needs more experience to use.
U shaped support JUST above the yesterday’s high strategy is undergoes two quality checks:
Timing check : Breakout/crossover of yesterday’s high is certainly a great timing.
Complex support check: U shaped support is obviously a complex support that can withstand the complex nature of chart.
We will surely discuss this interesting topic.
Can you tweak that price action to qualify it as a complex support?
If we tweak/qualify half a dozen price actions as complex support then day jobber"s trading income will crossover their salary.
If this price action takes support JUST above yesterday’s high, where will you draw the “high” line on this chart?
It’s okay if it is a rare case but that makes it a sure case.
Though price action is an art we are trying to add some engineering to it here.
Let us define “Every price action is a COMPLEX SUPPORT”.
"A price action taking support JUST above yesterday’s high is TIMING THE TRADE "
Now we are trying to balance art with engineering.
You said traders may either enter trade near channel outer lines or middle average line.
“Let market decide it. Which ever line is CLOSEST in taking support JUST above yesterday’s high is the ENTRY POINT.”
When entry point is SURGICAL PRECISION then success rate of the price action almost touches 100% if not a perfect 100%.
WHY YESTERDAY’S HIGH IS IMPORTANT?
Yesterday’s market (high/low) is today’s sideways market.
Sideways market is suitable for scalping.
Trend trading strategies are less effective when trading within sideways market.
All price actions are trend trading strategies.
The bottom line is, breakout/crossover of yesterday’s high/low is the greatest timing in trend trading.
It doesn’t matter whether you are an intraday trader or a swing trader, as long as you are trading with the MARKET TREND then this thread is for you.
“If trend is your friend then price action is your BEST FRIEND FOREVER.”
Trading based on market analysis requires price action?
Have you noticed such traders frequently say “entering trade at price dips”?
They are actually talking about complex support which is price action inside their mind.
THEY ARE SUBCONSCIOUS PRICE ACTIONS TRADERS.
If asked about price actions they may be reluctant and say “I don’t use price actions.” Their subconscious mind uses it. They might not be aware of it.
ALL TRADERS USE PRICE ACTIONS
Scalpers use price actions at nano level.
Intraday trend traders use price actions at micro level.
Swing traders use price actions at macro level.
(Trading based on market analysis is also swing trading)
WHY TO DEFINE TRADING
“If we define it today we can refine it tomorrow.”
That is how SURGICAL PRECISION is achieved.
For example, without DEFINING the boundaries of football, CHAMPIONS will not be created.
Trading Skills Is True Risk Management
This is easy to explain using a simple scenario
You invested 10k for trading options on index using price actions, ofcourse after thoroughly backtesting them manually.
In the early stage you managed to generate 10% profits per month.
Gradually you improved it to 20% per month.
At the end of your first year of trading you achieved 150% revenue.
Now at the beginning of the second year trading you increased your monthly profits from 20% to 30%.
For third year of your trading your investment size will be considerably big and your monthly trading income would have already started competing with your salary. That is when you will be thinking about your full time trading career.
Moral of the story?
Trading skils is your true investment, not money.
Trading skills is your true risk management. More trading skills less risk. Less trading skills more risk
Trading skills means timing the trade with complex support, which is basically price actions timed with yesterday’s high/low breakout/crossover.
HOW PRICE ACTIONS ARE FORMED?
We all know that retail trend traders follow the trend whereas big players create the trend
In other words, retail traders WATCH for price actions to form to ENTER trade like audience while big players TRY to form price actions to get confirmation for increasing their lot size to gear up the price movement.
In addition to price actions, big players use yesterday’s high/low breakout/crossover to time their decision to increase lot size.
Basically they (big players) are timing their price action with yesterday’s high/low breakout/crossover.
We the retail traders cannot create trend yet can practice this balanced approach of synchronising between price action and sidewalks market breakout (yesterday’s high/low crossover).
WHY I AM REPEATING THE SAME STUFF?
Practice makes it perfect means repeating the same stuff again and again until we master it.
WHY, WHAT, & HOW OF PRICE ACTIONS
Why to use price actions?
What is price action?
How to use price actions?
Hope this thread is covering these three questions comprehensively.
Yes, the SMART Money makes the trend. They grab the liquidity way before a breakout or breakdown and offload their positions there.
Yes, you have covered it pretty well. Thank you for your time and efforts. Your posts were helpful for me in some ways.