Showing posts with label TA patterns. Show all posts
Showing posts with label TA patterns. Show all posts

Saturday, December 4, 2010

Technical Analysis training Program

As I am preparing for the 2-Day workshop on  DEC 18- 19, it gives me an opportunity to look afresh at my TA Concepts, tools, actionable strategies.

  1. Understanding Trend is the most basic. Often beginners questions revolve round Trend determination.One good post on this by Tucker report.
  2. What Indicators trader should use and the steps to follow in looking at a price chart ? 20EMA,50 EMA, 200 SMA and Bollinger Band ( 20,2,0) together with MACD (3,10,0) is the preferred approach of Corey Rosenbloom.
  3. Reasoning in terms of Key levels to watch, idenfying any confluence in all these price levels, developing an IF / THEN logic will build a solid foundation for the trader.
  4. Using multiple timeframes in our analysis. Studying daily chart, weekly chart in conjunction or reading both 15-min and 30-min Intraday chart.
  5. Having tools to detect TREND CHANGE
  6. Trying to answer the frequent question of best time frame to Trade
  7. Interesting post on the relevance of Trading Education.
  8. I will be emphasising on the various free tools available to the Indian retail trader in his quest for trading success.
  9. This 2-Day ful time program will help investors and traders take independent decisions, make sense of the randomness of markets, decode the jargon of financial media anr recommendations/ tips from brokers and consultants. 

Saturday, November 21, 2009

Fading Other Traders' positions

Assuming Day Trading is a fight between participants in the trade, Is there an edge to fading other traders positions ?
  1. Trading floor used to give advantage of reading other traders or Tells.
  2. Can similar edge be gained in brokerage trading rooms where novice traders positions are displayed to all?
  3. What are the characteristics of "fadeable" traders ?
  4. I am surprised to find sometimes the positions of other traders overriding all indicators, TA patterns will give a clue to short term positions.
  5. If daytrading needs flash opinion on a stock what better market tell than an injured trader on the other side?
  6. This may sound cruel but the practice of deception is the nature of the market.
  7. Some characteristics of the trades I can fade are
  • When there is a random stop on a losing trade
  • Trader has taken a position rather than voicing his opinion
  • Revege trading is visible
  • Trader is trying to break even
  • Cursing or exhorting the financial instrument
  • Entering into trade to avoid regret
  • Lowering stops on a losing trade
  • Avoiding when the trader is strong or profiting in the trade
  • Quick and random profit booking by the trader for emotional reasons
  • Larger than normal size by the trader
  • Timeframe of fadable trader should match your own

Can these observations of traders strength or weakness in a particular trade give an edge at least for entering the position and relying upon TA and indicators for managing and exiting the trades ? I had lot of anecdotal evidence of Stockbrokers fading the positions of their clients when they run their prop books.

Can the daytrader use this as a shortcut cutting across opinions , news, TA and Random noise?

Market Structure differences 2010 Vs 2020

Some of the changes I have observed in Market structure in 2020 compared to around 2010 Huge increase in trading Volumes Predominant ...