Retracement strategy, a must for traders.
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
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I 'll always be there for you. To make you feel that you're secured. And even if the rain is pouring hard and the sky is almost dark... -
5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ... -
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
41 comments:
alpesh,
Sir has updated levels for Nifty..pls trade accordingly for BN too..I feel that we can book shorts as its highly risky to trade this news driven market and we can trade light till dust settles and we see price action..
since he is down with fever, i dont think we should trouble him for intraday queries..we wish him to recover soon to be with us here..:)
sir,
sorry..i thought you missed to update in last post "NEW POST DONE"..hence i have informed mates here :)
I am looking at LIC Hsg,JPAssociate,Yes Bank,BOB,Cairn,Axis - all seem to be holding on to some strong support levels - recovered from day lows and not budging. May be good picks for intra? Just a thought.
thx ilango sir and also assortZ
@yoda ,
i am putting part of ur yesterday's post
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.The most successful would be to trade exactly on the 5-Ema - buy when it turns up and sell when it turns down (at that price). Profit: 91,500 commissions: 19,250.
(Major drawback is getting your entry and exit price)
2. If you trade with the 'close' being above or below the 5-Ema (buy and sell when the close price turns around), Profit: 35,000, comm: 19500
(This overcomes the previous drawback, but because it fluctuates more wildly, the losses are greater.)
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Thanks a lot for sharing results of your experiment.
Have I understood the system correctly
1)If 5 ema is higher than previous bar go long. Long is to be maintained till 5 hour ema is increasing. At first decrease convert into short at next bar opening.
2) 2nd system if close of bar is more that 5 ema go long, maintain long position till price is closing above ema. When close is below 5 ema go short at next bar.
@piyush sharda & yoda
In 2nd system EOD-5 ema to be considered am i right
or wrong ?
if possible can u pls explain with current mkt data
Thnx
kk
@ piyush
my interpretation of Yoda's data is - his trading system is on hourly timeframe.
if the current price crosses previous hour 5-ema, go long and stop and reverse if current price goes below 5-ema. This is system @1 that fetched max profit.
if a similar trade is initiated based on hourly close ( and not current price ), then the profit was lesser considerably. this was system @2.
seniors pls comment.
Narasing
Sir,
If possible please answer as ur comfort.
I have learnt a lot about divergences from u . two important things what one should look for
1) is price action ie it should rise above positive divergence and fall after negative divergence. We can confirm by close above ema.
2) divergence shud be good and distinct. If we measure by scale there is always some divergence going on.
Two good divergence trades occurred on 25/5 good good pos divergence in 5 min, even hourly. Price making new lows and deep below hour ema too. Next day gap up and uptrend. Closing a short is ok here Is taking long position on 25/5 not a gamble? Though few people took and were benefited
2nd divergence trade was on Friday where price was constantly making highs and was firmly above all ema even hourly. Though rsi signal cross occurred but is has to taken in relation to price.there have been periods in past where after rsi cross price has rallied by 150 points and it wud take our all possible stops. Closing longs is ok but Is not taking short pure gambling?
How can we capitilise on divergence in such a scenario??
YOda and piyush,
Let us explore more on EMA trade , seems to be simple and effective
Dear Ilango,
Bulls are moving heaven and earth to keep Nifty above 5020,which is obvious,but the intraday addition of 23 lac O.I. in Nifty Future likely to restrain them from their efforts.Today's Nifty close,European clues,Overnight markets are likely to play crucial role in coming sessions/days.
Dear mynac, u long or short??
sir
truely tisco is a baramoter..
now i cn imagine hw deep is ur study..
Dear bizagra,
As everyone knows market used to give you chance,so waiting for the same.The appropriate level.No positions at all.
@Mynac..
Be the Bear Buddy.. Don't wait.... It's good in here !! ;)
Cheers...
Dear Ankurbbhatt,
For today I have adopted 'Sau Sonar Ki Ek Lohar Ki"Policy.Might wait up to 2.30.Till then Let Nifty decide/dance
@Mynac..
Ya...My idea was to be in this camp...at whatever time you feel comfortable ....Cheers...
In the hourly chart of NF, it looks like an Island reversal.And NF made low at exactly at the target of 4985.
euro markets and US futures, falling massively
just an info
@piyush,
I am big believer in divs. But be careful as you need deep pockets - because many times you have to ride it out or average down. If you try to trade on the first instance of a div occurring, you can get killed. Sentiments and momentum can go against you. That is where trends, S&R etc really help. There is no one magic formula for trading.
@yoda and others,
Trading crossovers is ok but watch out for whipsaws. Strict SL will need to be followed. 3/5 EMA crossover is also popular among day traders. You can get killed with SL losses and brokerage. Again there can be 10 trades that can go against you. Can ytou take such losses ? This is only slightly better than a coin toss.
My priority order -
Trend is king.
News is important.
S&R to do the trading plan.
Divs/OB/OS ( strength ) after that.
gd
Dear Ankurbbhatt,
Everyone knows how much current market conditions are important.So don't want to divert concentration for just few points when there is a possibility of Bigger Fish.Thats why,still waiting..
@Mynac,
Kal kahin bazaar band ho gaya to ?? Jaldi karooo, grab the profits..... :))
Dear Ankurbbhatt,
:)
Dear Mr. Ankur
How is NIFTY now, Shall I short at this level 5010.
rochak - my info is dow -52. What are you referring to?
raja
what i meant is
FTSEE had recovered upto -35, and DAX upto -40, dow F, -10
then they again started falling
withing minutes
FTSE went -72, dax also and dow futures upto -52, that s what i mentioned
Mr. Rajagopal
I am still holding nifty future at 5090. Shall I hold it for next two days.
kindly reply
@gd
thanx for replying. if u look in charts some very powreful moves occur
and even after divergence in hourly scale price keeps on rallying
to form more divergence
nifty can move 200-300 points.
so lets keep deep pockets aside market can eat millions in few days.
and keep asking for more .
we shud be able to distinguish divergence as tradable patterns.
even for small traders
like
Sryas: Sirs post reproduced below: (today's post)
@ Bizagra,
Nifty might trade in a band of 4935/4965 to 5065/5085 in the coming days.
Any break below 4885 and above 5105 may lead to some sharp moves.
So the trading strategy should be of "sell into rises & buy into drops as close as possible to the range mentioned".
Please follow it.
sir had posted
"Nifty might trade in a band of 4935/4965 to 5065/5085 in the coming days.
Any break below 4885 and above 5105 may lead to some sharp moves.
So the trading strategy should be of "sell into rises & buy into drops as close as possible to the range mentioned".
"
sorry RG,
did not notice ur posting ...
:)
Got it Rochak."falling massively" would have sent a few of us to the loo.
Sryas - I told you in our first exchange to watch out for queries from/responses to Bizarga,PS,Prabhakar on Nifty. also
Manu - on stock specific. ignore
Rajagopal.
hi mynac , welcome to the private room of JustNifty apartment
:)
RG
all pandav in for loo :)
i had a catheter attach so will take time to
stand up and go..
when s d news coming of Petrol Papae
Manu - FM+gang meeting slatted @ 11.45. They must convince CPM+BJP to tone down protests. May be late evening.
Dear mok,
Thanks.I am feeling like home here.
NEW POST DONE....
Compelled to make it to "Clarify a muddy air" after receiving some mails.
@piyush,
(ah, thanks for reading it through, I thought it was lost in the deluge of good wishes for Ilango. Talk about bad timing!:)
Yes, you got it right.
The 5-ema system is very simple, esp. if you're cutting and pasting the hourly intraday like Ilango does. It is basically cross-over, so you can refine it by putting a stop at that level and moving it up. And refine it further by, say, buying only or selling only (to cut down transaction costs).
The problem with the 'close+5ema'-system is that it goes very high above the 5ema before you can act on it and as gd says morning gap up or down will take its toll.
I have more thoughts on it, but I'll try it first - I've had so many failures in these experiments.:p
@gd,
There could be 10 trades that go against you with very small losses at whipsaws - but it seemed to me to be better than the huge losses I usually take with other indicators like PSAR.
@kkay
I've only worked it on the hourly, not EOD(Daily). I'll give you an example here for NF:
5-EMA:
11am: 5,021
12pm: 5,010
<---change from short to long
1 pm: 5,011
2 pm: 5,014
So you buy 2NF @ 5010/11.
If you did it with close+5ema, you'd have to buy @ 5018.
@Narasing, yes, that's right.
@MDK,
I'll try it out in reality first, plz wait for that to be successful before you try it. I wouldn't want to hook anyone into a crazy experiment.:)
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