I Use Various Combinations Of Time Frame for Trading / Investing. Generally, Time Frame Selected Decides Holding Period Of Trade. For Investment, Quarterly, Monthly & Weekly Time Frames Are Used, Where Holding Period is Few Months To Years.
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Lot Of People Requested For An Example Of Trend & Pullback System For Directional Trading System Which I Mentioned in Below Tweet. Hence a #Thread.
Simple #System I Follow In Trading:
— Zafar Shaikh (@InvesysCapital) August 20, 2018
1. Strong #Trend On Higher Timframe
2. #PullBack On Current TimeFrame Against Trend
3. #Contraction Of #Volatility During Pullback
4. #Resumption Of Trend On Lower Time Frame
Gives 60-70% Win Rate & 2:1 Reward Risk#Simple Things #Work
I Use Various Combinations Of Time Frame for Trading / Investing. Generally, Time Frame Selected Decides Holding Period Of Trade. For Investment, Quarterly, Monthly & Weekly Time Frames Are Used, Where Holding Period is Few Months To Years.
Most People Are Generally Interested in Short Term Trading. Hence, Illustrating One System Which I Use For Short Term Stock Futures Trading. Holding Period For These Trades is 2-5 Days. This Example is of Gail Futures Where Taken Long Position Today. Here We Go:-
Stock Futures Swing Trading Sysem
Time Frames Used :-
Weekly - Stock Selection
Daily - Pullback
Intraday (75Min) - Volatility & Entry Signal
GAIL #WEEKLY-
#StockSelection - GAIL Is Trading Near All Time High. Strong Up Trend. No Brainer. We Can Use RSI To Check Strength. RSI Above 60 is Generally Strong Trend.
GAIL #DAILY-
#PullBack For Last Three Days. Pullbacks In Trend Generally Find Support Near 10SMA. PullBack should be for 3-5 Days. Less Than 3 Days Gives Failed Breakout. More than 5 days generally indicate Lack of Momentum. However, There is No Fixed Rule
GAIL #INTRADAY (75 Min) -
#Volatility Contraction - For 2 Days, Price Coiling in Tight Range. Volatility has dropped. Use Any Volatility Indicator. My Favourite is Bollinger BandWidth. Volatility Has Cycle of Expansion & Contraction. Low Volatility Set-Up Give Strong Moves.
GAIL #INTRADAY (75Min)-
#Entry - Look For Entry Signal like Trix, MACD, SMA, Price Action As Per Your Choice. I Use Moving Averages + Price Action. Entry Was triggered in Gail Futures at 381.8 Towards Close & Position Carried. StopLoss Todays Low. Target Previous Week High +
More from Zafar Shaikh
33900 gone on #Banknifty
System says don't buy the dip
Wait for dip of dip of dip at 30500 #Banknifty & 15000 #Nifty
System says don't buy the dip
Wait for dip of dip of dip at 30500 #Banknifty & 15000 #Nifty
#Banknifty 33900-34100 zone has provided Support & bounce multiple times in last 12 months.
— Zafar Shaikh (@InvesysCapital) May 8, 2022
Watch this level carefully in current week. If 33900 goes, would open up big downside towards 30500 in May series ( Which is confluence of multiple support & AVWAP from Mar20 lows) pic.twitter.com/B7KUNkVVSE