How to use the market calls table

Hi,

From today I will be posting the market calls for the next trading day .As I have mentioned before, being a swing trader these are short term calls and they may not be suitable for your trading style. Please read the disclaimer before taking any decision on the strategies mentioned.

The most important thing in the table is the “SWING” column, it indicates the current swing direction and it is advised that we should trade in the direction of the swing

Next is "SAR" or the Stop and Reverse point , if the price touches that level, the current swing direction changes to the other direction (that will be reflected in the next post)

Then comes the column “Low risk entry ” this is the approximate level where the stock / index will retrace to during intraday trade,failing to reach this point during intraday trade means momentum is HIGH (in the direction of swing)

Then we have a “Target ” level ,which is simply a point that I expect the stock/index should reach if the trend is strong during intraday, failing to touch this level indicates a possible chance of reversal or LOSS of momentum (in the direction of swing)

That’s all about the table; I believe it’s very simple to understand. I would like to repeat that the most important column for a swing trader is “Swing” and “SAR” as long as that remains intact we can enter at any point (intraday over sold level)or book profits at any level(intraday overbought level) for long positions and opposite in case of short positions.But we should carry the position for the next day as suggested by 'swing' column provide SAR is not breached

For intraday trades you should trade in direction of the 'swing' and enter at "low risk entry"point with a possible target at the levels mentioned in the "target" column.You can modify this approach and trade as per your risk appetite or daily profit expectation but only in direction of  "Swing"

These levels and SAR work best in trending markets / stocks,ranging markets will give whipsaws.So try to avoid stock in consolidation phase or trade with less volume or use oscillators extremes to enter and exits out of trade.

Since SAR is a trailing stop,you will end up giving back some of your profits always.That is a basic disadvantage of trailing stop loss order.For best trading results you need to book profits near "target" and re-enter near "low risk entry" zone.Although I have given precise points as "SAR","low risk entry" and "target" you need to watch that zone and react as per prevailing market conditions.

Always wait for prices to become stable as the markets opens and put in your stops 10-15 minutes after market opens.Enter intraday trades as you see prices stalling,that skill will come from practice.

If you have a counter view to the current swing it is best to wait on the sidelines or trade with less volume with strict stop-loss for a short duration.

If you have any questions or comments feel free to ask

Good luck.


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