CMP : 5429
Candles & TLs :
1. EOD has formed a 3 black crows kind of pattern, this is BEARISH. Needs follow thru selling to confirm a slide
2. EOD candles have made 3 straight day of lower Hi's & lower Lo's
This signifies a change in TREND from Up to DOWN, if seen stand-alone
3. 5395-5412 EOD basis is a CRITICAL SUPPORT ZONE, break below this & nifty will seek TL support @ 5320-5340 zone
Obsvs for SMO SAR:
1. Price closed @ 5429 << 5DLEMA (5455)
2. 5DEMA @ 5485, 10DEMA @ 5464
3. Calculated PARABOLIC REGRESSION EQ for 5Day Close prices is :-
y(x) = -14.143 * x^2 + 115.86 * x + 5317.2
The DY/DX of y(x) , @ x=5 --> has convincingly Changed SIGN (change in DRECTION)
SMO_SAR VERDICT :
1. C1 is satisified - close below 5DLEMA
2. Now, wait for 5-10DEMA Bear x-over & go short only when Developing 5DEMA goes BELOW Developing 10DEMA (this will have to be done on the Fly using the T.T in excel)
cheers
dear shri ji,
ReplyDeletewhy are you not giving exact nifty level for smosar, like shri ilango ji gives i.e., for 27 th day jnsar 5514.
hi kalyani,
ReplyDeleteQ: What is the difference between JNSAR & SMO SAR ??
SMO SAR is NOT a NUMBER. Difference is in the Algo :-)
JNSAR is a Number, wen price hits JNSAR we exit.
Now, SMO SAR 2.0 works on the calc of dy/dx of curve of best fit of prior 5Days close prices...
So, u will hv to calculate the y(x) & then derive dy/dx @x=5 ON THE FLY
When dy/dx switches sign from plus to minus, its time to Exit Longs & vice versa for Shorts!
Exit for SMO SAR is based on RATE OF CHANGE, NOT ABSOLUTE NOS. AS IS THE CASE WITH JNSAR
Pls go thru the algo for SMO SAR 2.0 , thats an improvement on the 1st version i guess