Multi TF trading setup consists of one TF for analysis and one TF for entry/exit.
✅ Price Action rules tells us that higher the TF, better the reliability of important price zones.
✅But, PA rules also tells us that big moves begin on smaller TFs.
Multi TF trading setup combines the best of both.
✅ Higher TF for marking important price levels.
✅ "Lower TF sustained entry/exit" to time the best entry/exit.
Titan 30 mins chart:
✅ Resistance and support marked.
✅Movement of price along with increased volume - sign of a STRONG MOVE.
✅ Price reaches resistance band.
Titan 15 mins chart:
✅ Entry at 1327 with SL at 1309. 1R is initial profit booking area with SL moved at cost. 18 pts gain achieved.
✅ Refer below chart for detailed explanation.
Important Pointers:
✅ Setup is simple, can be followed for both long and short trades.
✅ Higher accuracy and bigger targets can be achieved following 1 simple rule: Follow the trend.
✅ Follow trend doesn't only mean stock trend but also broader market trend.
✅ If Nifty is going up, focus more on Long setups.
✅ If Nifty is falling, focus more on short setups.
✅✅NEXT THREAD: How to base trading decisions on market volatility!
Comments/queries welcome.
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Thread on risk and trading psychology in day trading:
Some traders stress too much on RM and TP to cover their many incurably inept trading methods. Some simple rules which is all you need are:
(1/n)
Pre-Trade:
1. Have a proven system in place. 2. Do not risk more than 1% of cap per trade. 3. Fix a number of trades per day. I don't go beyond 4-5 trades at any cost. Many days, I am done in 3 trades only. 4. Focus on R:R but also make sure you focus on POP.
(2/n)
During the trade:
1. Be a trend follower. Higher rate of success. 2. Do not always book in full at target in the direction of trend. Book partial, move SL to cost and let it trail. More often than not, trends continue than reversing and will give extra gains.
1. Momentum is the one of the most important and crucial aspects of TA in trading without which opportunity cost is lost.
2. The main purpose of RSI is to assess the momentum of the current and past price moves (which we will discuss later). 3. RSI is measured between values of 0 and 100 with certain values being defined as overbought and oversold. 4. These values are not constant but depends on:
a. Time frame of analysis.
b. Overall strength of the stock's/market's trend.
c. Current Market cycle. 5. The size of the TF and value of RSI are inversely proportional. 6. Ideal trade conditions are when RSI on 5 mins>15 mins>1hr in case of bullish trend.