CMP: 5228.45
Beautiful & Fantastic day, for the TREND FOLLOWER ... 22nd Mar'12 !
Beautiful - becoz it gave me an EUREKA MOMENT (and some money too on the side ;-))
Acknowledgements:
1. First & foremost must acknowlegde guidance of Shri. Illango ji , rgding use of 34 EMA.
We all know that Fibbo EMAs hold Key market info.
Question was: How to harness power of Fibbo EMAs to VERY RELIABLY detect trend changes, & HIGH - PROBABILITY SET UPs ??
2. Then, thanks to Shri. Kameswara Sarma ji, for asking "funny" Questions on ENTRY & EXITs for SMO SAR (which is meant esentially for SWING TRADE). He has been behind me for some time now , to work out a Robust & Reliable INTRA- DAY or ULTRA SHORT T/f trading-system.
This forced me to explore & combine the 5Hi-Lo EMA concept with Fibbo EMAs on VARYING DEGREES (T/fs)
RESULT :
We have potentially, a POWERFUL TOOL FOR TRADING, that can TRIGGER ENTRY based on :-
1. Fibbo EMAs @ Lower Degree (half hourly T/f , choice of 21 / 34 or 55 EMA is to be decided INTELLIGENTLY based on the PARTICULAR TREND) ; &
2. Can be Morphed into SWING TRADE , guided by by a SAR system (use JNSAR, and (or) SMO SAR, or even simple 10DEMA @ Daily T/f of Higher Degree)
OBSVs :
1. Never got 5-10 Bull DEMA x-over... instead we have a 5-10DEMA DIVERGENCE (indicating FAST FALL set-up)
2. Since market never closed > 5358 for more than 2 hrs, I was personally saved from GOING LONG intra -day & infact on breach of 34EMA on 30 mins, opportunity presented itself for SHORTS (that's the reason for my happiness today) !!
3. Tomo is Friday, WEEK CLOSING. Weekly supports @ 5160 / 5085
4. LTL from 4588 broken today. One more close below 5310 & its BEARISH TREND ON SWING
SMO SAR VERDICT:
SMO SAR LEVEL: 5295
Carry 50% shorts opened @ 5325 , with TSL as :-
1. change in 5DEMA(approx @ 5295) , or
2. LIFO-Fibbo TSL as 21EMA, on 5mins T/F
Rest from charts !
Stay true to the maths, it will reward you. For the Trend Follower : Follow Price, it is the ONLY REALITY :-)
cheers
Beautiful & Fantastic day, for the TREND FOLLOWER ... 22nd Mar'12 !
Beautiful - becoz it gave me an EUREKA MOMENT (and some money too on the side ;-))
Acknowledgements:
1. First & foremost must acknowlegde guidance of Shri. Illango ji , rgding use of 34 EMA.
We all know that Fibbo EMAs hold Key market info.
Question was: How to harness power of Fibbo EMAs to VERY RELIABLY detect trend changes, & HIGH - PROBABILITY SET UPs ??
2. Then, thanks to Shri. Kameswara Sarma ji, for asking "funny" Questions on ENTRY & EXITs for SMO SAR (which is meant esentially for SWING TRADE). He has been behind me for some time now , to work out a Robust & Reliable INTRA- DAY or ULTRA SHORT T/f trading-system.
This forced me to explore & combine the 5Hi-Lo EMA concept with Fibbo EMAs on VARYING DEGREES (T/fs)
RESULT :
We have potentially, a POWERFUL TOOL FOR TRADING, that can TRIGGER ENTRY based on :-
1. Fibbo EMAs @ Lower Degree (half hourly T/f , choice of 21 / 34 or 55 EMA is to be decided INTELLIGENTLY based on the PARTICULAR TREND) ; &
2. Can be Morphed into SWING TRADE , guided by by a SAR system (use JNSAR, and (or) SMO SAR, or even simple 10DEMA @ Daily T/f of Higher Degree)
OBSVs :
1. Never got 5-10 Bull DEMA x-over... instead we have a 5-10DEMA DIVERGENCE (indicating FAST FALL set-up)
2. Since market never closed > 5358 for more than 2 hrs, I was personally saved from GOING LONG intra -day & infact on breach of 34EMA on 30 mins, opportunity presented itself for SHORTS (that's the reason for my happiness today) !!
3. Tomo is Friday, WEEK CLOSING. Weekly supports @ 5160 / 5085
4. LTL from 4588 broken today. One more close below 5310 & its BEARISH TREND ON SWING
SMO SAR VERDICT:
SMO SAR LEVEL: 5295
Carry 50% shorts opened @ 5325 , with TSL as :-
1. change in 5DEMA(approx @ 5295) , or
2. LIFO-Fibbo TSL as 21EMA, on 5mins T/F
Rest from charts !
Stay true to the maths, it will reward you. For the Trend Follower : Follow Price, it is the ONLY REALITY :-)
cheers
EUREKA obsv:
ReplyDeleteWen price is Oscillating between 5DHi-Lo EMAs,
the LEAD indicator we use is 5HrHi-Lo EMA.
34EMA , 30 mins, can be used as a CONFIRMATORY SIGNAL in UNISON to give direction along with the HrHi-Lo EMA !!
Dear Shriramji,
ReplyDeleteGreetings. Appreciations to you for taking so much pain in explaining the concepts with real no.'s in your blog.
I am new to technicals. Could you please help to tell something about EMA's and how can we use it for a newcomer like me.And from where we can see the live charts.Thanks.
Regards
Suraj
P.S I am daily following Shri Illangoji,s blog but i can not understand most of discussions due to my lack of understanding of the subject.
Dear Suraj,
ReplyDeleteI am also a newbie, just 1 yr old in TA & only 3 months old in use of & understanding the maths of EMAs !
Main thing is u have interest, so u will catch up fast :-)
For understanding EMAs & how to use them, i wud recommend 2 websites:
http://forextrading.about.com/od/forexbasics/a/moving_average.htm
http://www.decisionpoint.com/tacourse/MovingAve.html
Pls read thru the MATHEMATICS fully before trying to APPLY it to live trading..
cheers
SMO
Dear Shriramji,
ReplyDeleteThank you very much. I will go through them and try to learn.
Regards
Suraj