"Here is a simple method based on 5 day EMA on highs and lows and your blog readers may want to investigate further. Signals are generated at EOD and executed on the next day. The position is closed until the next signal comes. There is also the option of stop and reverse ( instead of just closing a trade.)
Please see the chart below:
21 comments:
hi dear sir ilango
plz upadate bank nifty TA and EW count on your stock wealth blog
thx 4 ur valuable suggestion
regards,
alpesh
Ilango sir can you please resend me the nifty tech analysis table. I shall send you a test mail
DEAR ILANGO SIR,
PLZ SEND ME BANK NIFTY TECH EXELE SHEET ON MY akanparia@yahoo.com
thx
Sir it willbe helpful if you could elaborate on the chart sent by Prof SS. I am unableto follow
Sir, based on Prof SS's method, for tomorrow we should buy above 5257 (today's high EMA) and sell below 5209 (today's low EMA). Is that correct? But we already have a SAR at 5235. So, can we sell below 5235 itself? In case Nifty opens above pivot point will go long for the First Resistance. Am I correct in my interpretation sir?
Hi, ilango sir,
pls dont mind,
Professor SS's method is not good at all.
It gives very late signal.
For example on 3rd nov fall low was 4538.5, it gives buy signal over 4800+ when almost all indicators already long(at that time) much earlier.
The method is good for big momentum days only &
during momentum most of times there is high volatility, that creates much difference between high ema & low ema that makes that method more ineffective(late signal).
I have tested that method on 14 yrs nifty data, result is not satisfactory.
Best Regards.
High ema 5 and low ema 5 will be less effective if we ignore EMA5(based on EOD).
EOD data(end of day closing price) is most important for any positional TA.
Prof SS's method is for positional trade but it just ignores EOD data. It can not be a good one according to TA, never.
Any good method must combine all three HIGH EMA 5, EMA 5 & LOW EMA 5.
Best Regards.
Ilango Sir,
In weekly data i guess high should be 5311 instead of 5309.
Regards,
TT
Sir,
How to update the values in the google spread sheet -in the forum some body given for the benifit of all
Thanks
Bala
This is a concept.You can experiment around it as it suits you. Assuming that everybody can't be in front of the screen all day because of say a day job etc, the signal is taken at EOD.
The reason I sent this to ilango sir, is that most of you are following his 5 high, 5 low ema, and you know their values at any given point of time.So when you see a crossover, you can open a trade.
ss :)
Dear Indian
can u send me 14 years nifty data
will it possible to suggest software which can generate chartsignals automatically such 5 day EMA on highs and lows with features Signals generated at EOD and executed on the next day. If it is kindly provide in comment for readers
There are two ways of trading:
1. Once a signal is confirmed, initiate a trade. Followed by many which we call as conservative trade. Signals are generated away from tops & bottoms but nevertheless profitable to the disciplined. Works well in trending market. In fact, all positional trades work well in trending market.
2. Once the market reaches the extremes, using OB & OS readings combined with divergences & EW ending possibilities, a trade is initiated. These signals are generated closer to the tops & bottoms. It works well in all markets. We call it the aggressive trade. The biggest & most potential threat to this method comes in a strongly trending market where in the OS or OB can persist for a long time; Divergences can fail or even becomes traps; EW extensions happen and 5 waves become 9 and more too.
Combine these two with your experience.
Mechanical systems such as the one given by SS, takes away the strain of trading and especially for the one who do not monitor the market hour by hour.
hi..dp,
the signals can be generated in our "Blog Data" sheet of our excel file.
I will add a different colour for "Buy" when high ema goes above the low ema and vice versa.
gm, ilango sir. Very well said.That was a beautiful take.Have a good day.
ss :)
Hi..Sundar,
What Mr.SS has given is:
A buy is triggered when the "Day High Ema" moves above the "Day Low ema".
A sell is generated when the "Day low ema" moves below "Day High ema".
I will format these into the existing sheet and follow it up.
Hi..Indian,
Markets are dynamic and all kinds works at all kinds of time frames.
When one sits to trade human mind finds it difficult to hold itself steady for "few minutes".
Good amount of discipline is required and a balanced strong mind and above all willingness to let go off a loss.
You have been doing so well with your contributions and it is received well here. But remember..the moment you enter a competitive plane, all creativity is lost.
I do not mind at all you airing your views. In fact, that is the true foundation of this comment section.
Hi..TT,
Funny...Hourly recorded 5309.35 but the daily had 5310.85. there is your discrepancy. Mercifully it is just a point :)
DEar Ilango sir,
GM, since I was out for some time and could not update my excel sheet I shall be grateful if U could send me a fresh one. I shall send you a test mail
Rgds
I think Prof SS sir's trade will pave way for those who have missed out the initial entry to go long or short. This can be considered as a second entry.
Hi, ilango sir
Only time will tell how useful is prof SS system. My view is based on metastock on 14 years data after testing prof SS's system. If 14 years data gives unsatisfactory result it'll not change in next 14 years, bcoz markets is same.
From my past exp (8+ yrs) FUTURE MARKET IS NOT FOR THOSE WHO can't be in front of the screen all day because of say a day job etc, ultimately they will be LOOSER. U can se it from 23 dec rise after long triggered, market closed at 5144.
Risk is maximum for 'a second entry' bcoz market always changes direction in intraday bcoz 'Markets are dynamic'.
And I don't agree with ur word
'the moment you enter a competitive plane, all creativity is lost.'
If all creativity is lost then it is not creativity at all, bcoz I m a painter, I know what is creativity & I m here in competitive trade more than 8+yrs (I m living from trade past 8yrs, I quit my software prof job) my creativity is NOT LOST.
Besides that I have a mechanical system, I use my creativity to find its fault.
Anyway I always speak from my heart so sometimes it creates ... but my intention is right, to help fellow traders, so I entered here.
BYE. Have a Nice day.
Best Regards.
Dear Indian,
SS is a person who has passed thru no of systems,whenever he will express something it will be meaningful.try it first before giving any comment to it.please take it in +ve spirit.
Dear SS sir,
i have been following no of technical parameters for analysing the stocks but was trying to find a simpler system and i read yr message on PRICE at vfm and realised that everything is discounted in price so better to find a system directly tracking price. i have started following 1-2-3 patern which is based on higher high and higher low patterns.thanks for emphasis on price.that has changed my investment drastically successfully.
Ilango sir is doing nice job here.and his blog is becoming a hub for enriching skills.
Pankaj Shah
Sir iam one of the follower of 5Ema High low indicator.
Here you can find the simple Afl code to plot buy/sell signals
http://www.marketcalls.in/2009/12/simple-afl-code-for-5-emahigh-low.html
We cant simply say that 5Ema trading system is not an effective trading system. Just check out the weekly signals by it. Results are simply outstanding.
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