Thursday, February 16, 2012

SMO SAR for Nifty ji : 17th Feb'12



Close Price : 5522 > 5DHEMA : 5480
EOD candle has formed an INSIDE BAR ... sort of harami ... indicates PAUSE / INDECISION
dy/dx of 5DEMA , does not show change in SLOPE or SIGN , indciating CONTINUATION OF TREND


SMO SAR VERDICT: No change in BULL TREND, trail LONGS wid TSL @ 5DLEMA i.e 5416,
Will face TRENDLINE RESISTANCE as per CLASSIC TA @ 5625 Levels, book out LONGS there !
have NO VIEW ON SHORT TRADE @ ALL , TILL PRICE CLOSES BELOW 5DLEMA (5416) ...

cheers

Posted by at

5 comments:

  1. karjunanFebruary 17, 2012 at 9:14 AM

    Dear Shriram ji,

    Have just read your blog thru nifty paradox.I wish to learn SMO-SAR and also JNSAR...can you pls explain what actually these tools are or can you guide me from where to collect the entire study material about the same. Thanking you in advance.

    Regards

    ReplyDelete
  2. veerFebruary 17, 2012 at 7:46 PM

    Dear Shriram,

    It will be helpful if you can publish the excel sheet with an example as to how to find the slope.

    Can the mathematical formula be imbedded either by using functions (or) macros in excel sheet?

    Pls explain.

    regards,

    Veer

    ReplyDelete
  3. shriramFebruary 17, 2012 at 8:54 PM

    @ veer:
    Yes the aim is to model 5DEMA as a curve y(x) , where x={1,2,3,4,5}

    dy/dx (developing) = (y(5)-y(4))/{5-4}

    This y(x) will have to be MODELLED using Non-Linear Regression... U can do this in excel.

    Have told u the heart of the algo, but I believe its up to each person to develop his own spreadsheet.

    @karju: SMO SAR is a slightly refined version of Shri. Illango's JNSAR... in that i wait for price to close ABOVE HEMA or BELOW LEMA & then trgieer a trade based on 5-10 x-over.
    My Algo is @ this link


    http://shrirams-world.blogspot.in/2012/01/smosarver10.html


    Pls read first. This is the ONLY Tool , no other magic or gimmicks

    cheers

    ReplyDelete
  4. sometimesbullsometimesbearFebruary 18, 2012 at 8:12 AM

    Dear Shriram

    "Yes the aim is to model 5DEMA as a curve y(x) , where x={1,2,3,4,5}

    dy/dx (developing) = (y(5)-y(4))/{5-4}"

    x = ?

    Y = ?

    What are the values for x and y?

    Could u simplify the equation for SSC HSC level maths guys :)

    How does one calculate the slope in a simple equation or in an excel?

    Could u pls elaborate.

    Thx

    ReplyDelete
  5. shriramFebruary 19, 2012 at 6:50 AM

    hahaha... dear SBSB,

    nice !

    See, y(x) is FUNCTION dependant on x.

    simplest of PARABOLIC CURVES is y(x) = 4*x^2 (assume this is the approx eq for 5DEMA)

    Here the calc for SLOPE of 5DEMA wud be
    slope = {y(x=5)-y(x=4)}/{5-4}
    = {4*5^2 - 4*4^2}/{5-4}
    = {100-64}/1 = 36

    Now on the NEXT TRADING DAY,
    u will need to shed the PRICE POINT y(x=1)
    So , now we REWORK the curve EQUATION , by taking THAT NEW DAY'S ESTIMATED CLOSING PRICE (say @ 3:00 PM)

    And then, you shall have to again calc the NEW slope for this DEVELOPING CURVE (its EQ will no longer remains y=4*x^2 !!!)

    Basically, u have to keep renewing the EQ

    I will be putting up SMO SAR on a formatted file shortly.

    But, pls remember u will have to learn the MATH by force, coz the FORMULA for y(x) CHANGES EVERYDAY WITH PRICE !

    Bhaav Bhagwaan che :-)

    cheers
    SMO

    ReplyDelete

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