WE CAN MAKE THE PROFIT EASILY.
ANYTIME,YOU CAN ENTER THE MARKET ,BECAUSE MARKET IS OPEN FOR ALL
THE TRADERS THROUGHOUT THE DAY.BUT WHEN TO ENTER AND WHEN TO EXIT
IS THE IMPORTANT FOR DAY TRADERS.
IMPORTANTLY,IF WE HOLD THE WRONG POSITION. WHEN TO EXIT FROM THE
WRONG POSITION IS THE IMPORTANT QUESTION.
GENERALLY THERE ARE TWO TYPES OF TRENDS AS FAR AS I KNOW .
1)MAJOR TREND
2)SUB TREND
WHAT IS MAJOR TREND?
IT SHOWS THE BULLISH TRENDS OR BEARISH TREND .THATS ALL. YOUR
TRADE SHOULD BE ON THE BASIC OF THE MAJOR TRENDS IF YOU ARE
A POSITIONAL TRADER.
WHAT IS SUB TREND?
THIS IS CONTRA TREND IN THE MAJOR TREND .
FOR EXAMPLE,THIS WEEK , CRUDE OIL IS BEARISH BELOW 3300 AS PER THE
MAJOR TRENDS .WE KNOW WELL. IT MAY ACHIEVE 3250 TO 3200 LEVELS
POSITIONALY THIS WEEK.HERE WE MAKE A ENTRY WITH MAJOR TREND
AND SELL THE CRUDE BELLOW 3300
BUT IT WILL NOT GO TO 3250 DIRECTLY FROM 3300 .
AFTER TESTING SOME DOWNSIDE ,IT MAY GO LITTLE UPSIDE.
AND THEN COMES DOWNSIDE.
BECAUSE IN THE MARKET, EVERY ACTION GETS REACTION,
SO THERE ARE BUYERS AT EVERY LOW PRICE AND SELLERS AT EVERY HIGH
PRICES, SO MARKET MAY FLUCTUATE WHOLE DAY, BUT MOVEMENT WILL BE WITH
THE MAJOR TREND ONLY.
PLAYERS ARE MOSTLY TRADING IN THE MAJOR TREND.
OK, WHENEVER YOUR POSITION GOES WRONG, YOU NEED TO EXIT FROM WRONG
POSITION,BUT WHEN TO EXIT IS THE QUESTION. WHENEVER THE TRENDS
REVERSES AGAINST YOUR POSITION ,YOU NEED TO EXIT THIS IS THE ANSWER.
SO HERE TIME FRAME PLAYS THE IMPORTANT FACTOR. FOR CRUDE OIL .
5INUTES CHART – 20-30OINTS
15MINUTES CHART-30 -50 POINTS
30 MINUTES CHART-50-80POINTS
60 MINUTES CHART- 80-130 POINTS
TREND REVERSAL POINT OR EXIT POINT FOR THE WRONG POSITION WILL BE
BASED ON THE ABOVE POINTS FOR CRUDE OIL IN THE CURRENT VOLATILE
MARKET.SO DECIDING THE TRENDS REVERSAL POINT TOTALY DEPENDS
ON YOUR STRATEGY AND YOUR TIME FRAME.
SO WHENEVER YOUR POSITION GOES WRONG WITH YOUR TIME FRAME ,
EXITING ON THE SUITABLE TRENDS REVERSAL POINT IS MUST
TO CUT THE LOSSES SHORTLY.
