Here I will try to explain how I trade Geometrical Patterns.

Let me start with Symmetric Triangles.

Symmetric Triangles form when the markets are in indecision mode. Symmetric triangles can be easily detected when prices make alternate "lower highs" and "higher lows" in upside and downside slopes defining a symmetry. Symmetric triangles form when supply and demand are almost equal. Most triangles result in a clear breakout/breakdown in the direction of the prior trend.

Usually volume will drain during triangle formation. I am not looking at volume while trading triangles.

Trade Entry Rule: enter a trade few ticks above/below breakout/breakdown bars high/low.
Breakout/Breakdown happens when close of the bar is beyond trend line defining the symmetric triangle.

Target: Target is breadth of the symmetric triangle from the point of breakout/breakdown.
Partial exit can be considered at 50% breadth level.
t is better to close trade near 90% breadth.

Stop Loss : Previous swing low below down trend line defining Symmetric Triangle for upward break.Previous swing high above up trend line defining triangle for downward break.
Once in profit, use trailing SL to keep profit. Pivot high/Pivot low can be used as trailing SL.

Hope I have conveyed what I wrote in the chart below.

Thanks and regards to all.

any thoughts ???

Keep flowing

Kaiser…

Coming to Dronacharya. His favourite was Arjun and he wanted him to be the best archer in the world. He was biased in his approach towards him as his love for Arjun overcame the first principle of a teacher to teach all students all methods (this is the popular interpretation).

He wanted to give some extra knowledge to Arjun and his son Ashwathama. But could not do so in front of all the Pandav and Kaurav princes. So he gave all students a big vessel each to fill with water from a distant stream and come back everyday.

He taught Arjun a mantra (a way) to fill the vessel fast and gave his son Ashwathama a vessel with wide mouth as he knew Ashwathama would never be able to wield the mantra. Result was, both Arjun and Ashwathama used to reach the school (ashram) much ahead to the rest of the students. Dronacharya gave lots to extra knowledge to both of them. Arjun, of course, went on to become the supreme archer.

Now Arjun had this advantage of having a very devoted and loving teacher. He had earned this because of his hard work and dedication which Drona recognised.

History also records how Drona treated Ekalavya.

Now the question arises:

1. Why did Drona act like this?
2. He was obviously a wise man and not prone to such favouritism (I do not believe in the popular interpretation). Did he think that higher knowledge is meant for only a few who deserve? Who can handle the power of knowledge? Who are capable of understanding it fully? So did he bring in gradation of knowledge disbursement according to one's ability without others knowing and hence creating unnecessary furore among the other less fortunate students?

I had a feeling that my education had stopped when the mother thread was closed by Saint. What followed in the sister threads was basically revision and application practice of the knowledge gained till that time from Saint.

When this forum started, I found, and today ST also voiced the same in one of his posts, that moderators are Arjuns and their knowledge is far ahead of mine. They are the top students of Saint, no doubt, and deserve the status of Arjun.

I hope, I am able to develop my abilities also to be like one of the Arjuns of this forum so that I also gain higher knowledge and earn the recognition from our teacher Saint to also impart us the knowledge for which we will strive to reach that level of excellence where he will think that we have arrived on the pedestal where once Arjun stood.

Saint will be remembered as one of the greatest teachers among our fraternity and we will one day tell our children and grandchildren that we were taught by him.

Bee

I am uploading a file detailing my strategy for daily chart trading in Goldmini and a profit taking strategy without leaving too much on the table.

Please go through this critically and come out with flaws and pitfalls.

A million thanks to Saint, my teacher and a bow to my fellow esteemed readers who have taught me so much and will continue to do so in future also.

Am giving the link to the file as below:

http://rapidshare.com/files/213877665/Treatise_on_daily_bars.pdf

Regards

Bee

First and foremost, I have to thank Saint sir for developing this wonderful method. According to me sharing this method on public forums to educate people is even greater than developing the method itself. With my little experience in life[I am just 25 :)] I am yet to see a person who is so selfless, kudos sir. I would also like to thank ST da, Kapil, and a lot of people from TJ and TraderSaint for having answered soooooo many of my questions :).

What am I referring to in this thread?
I have been paper trading Nifty Futures using the Intraday Mini Flow method. In this method we use the 30min TF charts. After last Friday's trade [March 20 2009], I was not happy with the way I could identify the reversals [It was not a trade reversal but infact the Price reversed, an early entry to such reversals is what i am referring here]. Almost throughout the entire week of March 16th - 20th, there were many days where Nifty Futures price reversed [After having gone high at one point it reversed and formed new lows/ after having gone low at one point it reversed and formed new highs]. Except for Friday on all other days, Nifty Futures reversed after having given considerable profits. close to 20-25 points.

On Friday, we could have used the breakdown/out failure or the move1/2 concepts and could have entered trades, a lot of fellow members did the same and made good profits. However, if one had stuck to the rules there could be profit of only 8-10 points or could have ended in losses. Having said this, I am in no way underestimating the concepts. All my concern is about having to identify this reversal and then confirm the reversal inline with the already existing concepts.

So, while trying to findout some way of identifying this reversal, I experimented with the "Exponential Averages" [EA]. After a lot of trial and error I ended with two EA's. I drew two curves one with EA as "2" and another curve with EA as "5". Now the interesting part was that "whenever/wherever there is a cross-over in the 30min TF of these two curves, on most occasions it refers to the reversal point". Please find the 30 min TF chart for friday attached below:

The cross-over of the WhiteCurve[EA 2] and BlueCurve[EA 5] at the point 2779.54 approximately would have been a good entry.

Another thing I would like to mention is that, the 15min TF can/should also be used to identify and confirm a Reversal. In case of a Reversal, the 15min TF would first show it, however if it is not shown in the 30min TF, then it does not form a reversal point. Please find the 15min TF chart for friday attached below:

As you can see there are more cross-overs identified in 15min TF shown by "Arrow" compared to the 30min TF. It is the 15min TF which initiates the cross-overs, but it should be confirmed with 30min TF as well, else there is likely to be no reversals. However, when we see the reversal in the 30min TF at 2.00 PM Bar, it is confirmed in the 15min TF as well. When I backtested this behaviour for the entire week, the results were positive. I believe we can use this additional method to identify reversals.

Also, please note that I am very new to Trading and I am still a student eager to learn a lot of things. I would want the seniors to comment on this and validate the same.

Regards,
-Sri

hi satya…..didnt post in the other thread coz…dun wanna mix up … only pivots..and the rsi…..stuff dere shud b only pivots….simple stuff….wanted dat to b preserved fr pivots only……nd rsi and pivots here……wat say :) greaat stuff frm u

posting old post here….. all about pivots ……. frm our very own TJ…..

dis is what i have read ……….

go thru dis for details about rsi…….

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:relative_strength_index_rsi

here is d link 4 discussions relating to rsi that i am posting ahead…u cn study deeply 4m here

http://www.traderji.com/equities/25356-live-discussion-saints-60-minute-flow-59.html

Originally Posted by prabhjeetrana
RSI actually measures the Overbought (reading above 70) and oversold (reading below 30) levels for any entity we are trading.

But here we dont use RSI to catch tops and bottoms as most people try to use. Here we are using the basic tenant of Saint's theory that in an Uptrend we have progressively higher pivot lows and vice versa for Downtrend.

Now when I am using RSI in Uptrending stock, a stock will keep on moving up and RSI will be above 50 now if the stock declines for sometime the RSI will dip below 50 and then it will start to rally again and if we have a healthy rally the RSI will again move above 50 so that marks a Pivot low for me.

Now why I use RSI for filtering Pivots is because sometimes in an Uptrend we get a decline that is very shallow and we tend to get whipsawed taking the Pivot break of such Shallow Decline, hence RSI will give us signal only when we get a healthy decline.

Secondly it solves the problem of which sideways movement to use as Pivot, when we have a slightly longer consolidation the RSI will dip below 50 and if it manages to rise above 50, that would be a valid Pivot, if it stays below 50 wait for it to rally above 50.

Some people may not agree with 50 line for using Pivot deciding levels, you may try 60\40 or 70\30 levels for deciding Pivots, but I am ok with 50 levels.

If you want more laid back approach use RSI of more than 3 which I have used and if you want to make it more agressive you can scale it down to 1 but I have found RSI (3) ok for me.

Please dont try to prove this view correct or incorrect, if you backtest it, you will certainly see its useful but it may not suit everybody's personality. It suits me so I am using it

Regards

Centerline Crossover
The centerline for RSI is 50. Readings above and below can give the indicator a bullish or bearish tilt. On the whole, a reading above 50 indicates that average gains are higher than average losses and a reading below 50 indicates that losses are winning the battle. Some traders look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals.

regards

neeraj

Background: Saint had thrown little light on this method, before going ahead with more-polished 30 min miniflow method. I would like to keep 5/60 method alive as well.

Could I start this thread in this section?
Please suggest.

Kaiser.

We all believe that the price moves in a trend.

But does the intraday volatility (noise) also exibit the same.

Does the range in which price moves follows a pattern?

Maybe not, its as random as it gets :)

But the average range or ATR does follow a pattern of ebb n flow i.e. it trends

Can we use this to decide the expected range for the day?

Its not perfect (what is) but can we interpolate this range to get expected Highs and Lows for the day?

I will use reliance (today's data) as an example to explain the concept in my next post.

Regards
Rajesh