I buy when Hrly 5 ema cross & close above daily 5ema , & sell when 5 hrly ema close bellow 5 daily ema. Just reversing position as per system.Three questions i have in my mind hope i will get clarifications :
1. Will this one a good trading sytem ?
I have never looked at it this way but from the fact it is based, it is obvious that if 5 hour ema moves above 5 day ema, it has to be strength. Now the most important question is: Is it tradeable..? How much lag in time it leaves you and how far away from the bottom or top it generates a buy/ sell. Have you back tested over a period of ...2 years.
I have never looked at it this way but from the fact it is based, it is obvious that if 5 hour ema moves above 5 day ema, it has to be strength. Now the most important question is: Is it tradeable..? How much lag in time it leaves you and how far away from the bottom or top it generates a buy/ sell. Have you back tested over a period of ...2 years.
2. When should I book profit or I have to do partial profit booking?
When the larger trend is still in force but the short term is "Overbought with negative divergence", it is time to do partial profit booking. Full booking may be done when the larger trend is overbought with negative divergence and your system suggests you to initiate a SELL.
When the larger trend is still in force but the short term is "Overbought with negative divergence", it is time to do partial profit booking. Full booking may be done when the larger trend is overbought with negative divergence and your system suggests you to initiate a SELL.
3. Any other term (indicator) I have to consider or add into it? I think i have to consider two terms Like trend Line(channel) & divergence.or just that ema will work(need not to consider other things)?
That is "three questions in one"... I have a system that incorporates Macd-fast & slow, stochastics-5 & 14 periods, Pivot points showing critical highs and lows, Channeling, Tech. table with three important emas - close, high & low to show the trend and its strength & weaknesses as well as their momentum and finally Elliott wave analysis - a labeling system which maps out the price advancement and retracements and reversals in an orderly way. I have summarised these and presented it in "Technical analysis" under "LABELS" in my blog.
That is "three questions in one"... I have a system that incorporates Macd-fast & slow, stochastics-5 & 14 periods, Pivot points showing critical highs and lows, Channeling, Tech. table with three important emas - close, high & low to show the trend and its strength & weaknesses as well as their momentum and finally Elliott wave analysis - a labeling system which maps out the price advancement and retracements and reversals in an orderly way. I have summarised these and presented it in "Technical analysis" under "LABELS" in my blog.
4. One more doubt gap up & gap down???? if it is opposite of our position??? How to tackle this?
When ever market is trending up, the gap downs upto close ema or low ema may be used to enter into long trades. "ORB" too helps in this method. Similarly, in a downtrending markets, the gap ups provide excellent opportunity to sell orders. This is not a rule but it works most of the time.
Reader-2:
5. I wanted to do Intraday trading alone. I look into MACD first to check whether its bullish or bearish in a Daily Chart, Next I confirm with Stochastics and RSI. After in Intraday, I check in Hourly chart for Oversold and overbought using RSI and next i enter trade in 5 minute chart but manytime i enter trend is reversing , I cannot find perfect entry point always there are any problems. Sir, Hope you will guide me How I can do good trading with some strategy.
In a trending market, buy into "every 3 wave declines/ retracements" for better entry & hold.
Once the trend shows fatigue with "overbought readings", study the price chart, especially the hour chart for "Price clusters" to understand the likely supports and resistances and position yourself to trade the ranges.
Never trade based on indicators as they only indicate the likely direction but can reverse suddenly too. By studying the "price clusters", you will be able to trade with ease. Try this - you will find amazing results. And when you do, keep your feet firmly on the ground and head down with emotions under check and stay away from market men. Emotions can easily unsettle all that you have built..
Trading is just like any other business - more the secrecy, more the success.
Reader-2:
5. I wanted to do Intraday trading alone. I look into MACD first to check whether its bullish or bearish in a Daily Chart, Next I confirm with Stochastics and RSI. After in Intraday, I check in Hourly chart for Oversold and overbought using RSI and next i enter trade in 5 minute chart but manytime i enter trend is reversing , I cannot find perfect entry point always there are any problems. Sir, Hope you will guide me How I can do good trading with some strategy.
In a trending market, buy into "every 3 wave declines/ retracements" for better entry & hold.
Once the trend shows fatigue with "overbought readings", study the price chart, especially the hour chart for "Price clusters" to understand the likely supports and resistances and position yourself to trade the ranges.
Never trade based on indicators as they only indicate the likely direction but can reverse suddenly too. By studying the "price clusters", you will be able to trade with ease. Try this - you will find amazing results. And when you do, keep your feet firmly on the ground and head down with emotions under check and stay away from market men. Emotions can easily unsettle all that you have built..
Trading is just like any other business - more the secrecy, more the success.
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Aarvee's Analysis:
Aarvee's Analysis:
I am taking some time off from active blogging due to family and work commitments. This journey has been truly a great learning and evolving experience under your guidance and cooperation from friends. My sincere Thanks.
I am posting few Charts that are throwing some Answers(part-1) and asking some Questions(part-2) at this crossroads where both the Bullish and Bearish side can be argued with equal conviction.While I can have my perceptions and be biased, the Charts have none. It will be helpful to follow these Charts and keep them handy for trading in near future.
With Regards
AAR VEE
Dear Aar Vee,
Solitude/ seclusion brings out the best creative energy. Take care of your other commitments, dear aar vee and when you find some interesting observations to share with us, the doors are always open and don't take too long.
3 comments:
sir, you have given a clear description to the queries as well to the indicators and positions.
aarvee, your analysis as usual is concrete.
and, sir thanks for your footnote to RV, its a nice weekend.
Sir,
Please explain what do you mean by "price clusters" and how to arrive at them.How to use these clusters in positional trading in nifty.Waiting eagerly for your reply.
@aarvee,
Great analysis. As you find time, keep your analysis coming. The more the perspectives, the more we can be careful in our trading.
@ilango sir,
Thanks for the answers to those questions. I have one followup question - just trading 3/5 EMA crossover on daily seems to be a decent strikerate ( i went back 2 yrs in Nifty and S&P - very few whipsaws - with strict SL it seemed more than 80% hits ). Any opinion ?
Using your tech table spreadsheet, i created the equivalent for S&P. I have posted the first S&P tech table in my blog ( link below ). I have done some analysis of the data - but I am not confident on the analysis. I would appreciate if you can take a quick look at it to verify my findings.
Thanks
-- gd
http://safegamble.blogspot.com
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