Friday, March 16, 2018

Trading Stocks by Range Break Out Logic

From last one week i am doing paper trades in stocks (i have picked around 20 into my watch list)
Today i wanted to pen down the process i am following so far. If you find any thing useful, i am glad.. This post is basically for documenting my own thought process

IDEA

I have tried different ways like PDH/PDL Cross, EMA Cross, Golden Ratio trades etc.. found none of them to my satisfaction. I am ending up too much of time spent in monitoring and analyzing rather than trading.. during market hours. Also data feed issues and AFL run's gave me extra trouble.

Then i have decided to stick with EOD analysis.. and come up with Levels to monitor for next day for  each of stock. 

Steps

Step 1: Out of 20 stocks in my list, i am manually going through each of them EOD and identifying the one's trading in range recently..  Marking RH and RL levels in Chart and in an Excel.

Step 2: Next day morning put ALERT's in Fyers One desktop software for all stocks filtered for the day. 

Step 3: Once you get Alert pop up notification window (with sound), Open Chart and see how price behaving once broke out... Adding to our existing DP knowledge we can take trade decisions.
i.e. BPB Long (Or) BOF Short.


Pro's

1. No extra time spent during market hours
2. If Nifty not offering any good trades,, we can still look to gain by trading in stocks
3. Chosen stocks are picked from Top 25 weight age stocks in Nifty index. Slippage should be less compared to other stocks.

Con's

1. As of now i am not monitoring stocks in Trend mode,, might be missing some good picks. 


Example:

BHARTIARTL Trading in a RANGE for last 3 Days





Today after breaking RH.. there was good BOF setup formed with Fluid below.. which moved well





PS: Suggestions are welcome.

16 comments:

  1. Thx for the write up. Is it possible o search for range. Bound list using afl.. Or even better would be iscript up to BO.

    ReplyDelete
    Replies
    1. I havent tried...EOD analysis of selected picks seems food way for me..you will have an idea beforehand

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  2. From my experience. Stocks are random and chop all day except morning session. Look for momentum setups. In first hour as URD, Wandering trader are doing this successful. Arun

    ReplyDelete
    Replies
    1. Arun,

      Yeah.. was aware of this...I observed majority of good moves happen between 9:15-9:45, 1:00-1:30, 2:30-3:00... in between.. nifty and stocks would be ranging.. anyways with the way i am trying to do.. i look at any stock chart only after i get a sound notification when that particular level is reached.

      Delete
  3. Can you please share the 20 stocks that you go through? Also, if you could publish the ranging stock for the day, it would be highly helpful.

    thanks

    ReplyDelete
    Replies
    1. HDFCBANK
      RELIANCE
      HDFC
      INFY
      ITC
      ICICIBANK
      LT
      TCS
      KOTAKBANK
      MARUTI
      SBIN
      TATASTEEL
      AXISBANK
      SUNPHARMA
      TATAMOTORS
      HEROMOTOCO
      HINDUNILVR
      BHARTIAIRTL
      BPCL
      ASIANPAINTS
      HINDALCO

      Delete
  4. What are ranging stocks for monday?

    thx.

    ReplyDelete
    Replies
    1. I decided to do that exercise every day morning before 8 AM.. Your memory will be fresh.

      Delete
  5. Interesting blog! Is your theme custom made or did you download it from
    somewhere? A theme like yours with a few simple tweeks
    would really make my blog shine. Please let me know where
    you got your theme. Kudos

    ReplyDelete
  6. You're so cool! I do not believe I've truly read anything like this before.

    So great to find somebody with original thoughts on this subject.
    Really.. thank you for starting this up. This website is something
    that is needed on the web, someone with some originality!

    ReplyDelete
    Replies
    1. My mentor is SMART TRADER (fame of Nifty Nirvana).. The first thing i learnt from him.. Knowledge will multiply by sharing.. I wasted lot of time trading with tipsters.. Off late i am trying to add few tricks or strategies to knowledge learnt from Nifty Nirvana.. and documenting into blog posts

      Delete
  7. Hi Rose,
    Above 2 comments (about your blog) appear like very generic and it makes me think it is from a Algo!
    take care,

    thx.

    ReplyDelete
  8. Rose, as always, you have a sound plan. All the best for good profits. I was thinking you would pick up stable but reasonably higher beta stocks as a selection criteria to get a good range to trade. wondering why ITC?

    ReplyDelete
    Replies
    1. Thanks Vimal.
      I also checked high beta stocks like DLF, RELCAP, PCJEWLLER etc.. most of them having high lot size and also very fast moving.. then i thought of having top 20 stocks of nifty weightage stocksss.. though they wont move in big range.. i expected low risk in them.

      However i get very less picks out of these 20 .. for range criteria. Working on a way to automate the process of identifying range stocks.. some thing like stocks struck in 1% of its price for last 3 days (at least).. have to see how it goes.

      Delete