CMP: 5184
For the faithful Trend follower, FAITH MOVES MOUNTAINS!
who had gone short @ 5325 on Thursday 22nd Mar'12 & CARRIED THE TRADE STRICTLY WITH EOD SMO SAR Levels (5DEMA change),
would have gained a handsome 140 pts & still counting as on today.
SUPPORT ZONE : 5084 / 5160
RESISTANCES : 5220 / 5256-5280 / 5330
OBSVS:
1. EOD close below 5205-5210 support TL
2. EOD close decisively below 55DEMA (@ 5240) . Previously, it had taken Nifty 2 months to overcome 55DEMA, once broken!
3. VOLS are LOW, only pt sticking out like a sore thumb against what has been an UNIFORM DOWNTREND (the good pt is the EOD Vols on RED days is >> than Vols on GREEN days, so there the VOLS are supporting DIRECTION, but overall vols are low)
SMO SAR VERDICT:
SMO SAR Level = 5256
Carry Shorts with SL @ 5256 (EOD basis level for change in direction of 5DEMA)
For Intra-day players, use the 34EMA trade near support zones !
cheers
For the faithful Trend follower, FAITH MOVES MOUNTAINS!
who had gone short @ 5325 on Thursday 22nd Mar'12 & CARRIED THE TRADE STRICTLY WITH EOD SMO SAR Levels (5DEMA change),
would have gained a handsome 140 pts & still counting as on today.
SUPPORT ZONE : 5084 / 5160
RESISTANCES : 5220 / 5256-5280 / 5330
OBSVS:
1. EOD close below 5205-5210 support TL
2. EOD close decisively below 55DEMA (@ 5240) . Previously, it had taken Nifty 2 months to overcome 55DEMA, once broken!
3. VOLS are LOW, only pt sticking out like a sore thumb against what has been an UNIFORM DOWNTREND (the good pt is the EOD Vols on RED days is >> than Vols on GREEN days, so there the VOLS are supporting DIRECTION, but overall vols are low)
SMO SAR VERDICT:
SMO SAR Level = 5256
Carry Shorts with SL @ 5256 (EOD basis level for change in direction of 5DEMA)
For Intra-day players, use the 34EMA trade near support zones !
cheers
Shriram ji ,
ReplyDeleteI have tried combining hour Hi low close ema s with 34 ema on 30 min TF , Into an excel sheet . kindly check the page out for details .
http://mytradingfile.blogspot.in/2012/03/hourly-high-low-combined-with-34-ema-on.html
would appreciate your inputs .
Thanks
Smita
Hi smita,
ReplyDeleteFirstly please accept my best wishes !
U have a Nice & simple Blog :-)
Ok, now to business: Have seen ur excel.
So basically if i have understood correctly ,ur ENTRY TRIGGER FOR
1. LONGS is : Price to CLOSE > 5DEMA, 10DEMA ,5Hr-HEMA, & 34EMA
TSL is close BELOW 5hr-HEMA ?
&
2. SHORTS is : Price to CLOSE < 5DEMA, 10DEMA ,5Hr-LEMA, & 34EMA
TSL is close ABOVE 5hr-LEMA ?
While this is logical, i feel ur system will be even better with a BOOST of DIRECTION of PRICE @ TIME OF CLOSE. I.e it doesn't take into account the DIRECTION from where price is CLOSING !!
For eg- on 26th Mar'12 @ 3:00pm
ur system , generated a sell @ price close @ 5183,
If instead of just focssing on "ANDING" of all EMA's, if one had shorted @ OPEN below prev day's closing period 34EMA (ruffly @ 5288.5) @ say 5238 @ 9:30AM, one wud have made a smooth 50 Nifty pts by 3:00 PM same day @ 5183 :-)
CORE Q TO BE ANSWERED : Why is the system generating SELL so late @ 5183??
Ans: My understanding of Shri. Illango's LOGIC behind 5Hi- Lo EMA is that they are LEAD INDICATORS
Meaning --> Look @ DIRECTION OF PRICE, if price falls from ABOVE Hi-EMA & then CLOSES BELOW it, H-EMA is saying BOSS , UP TREND MAY BE OVER
similarly,
if price Rises from BELOW Lo-EMA & then CLOSES ABOVE it, Lo-EMA is saying BOSS , DOWN TREND MAY BE OVER
We shud now use 34EMA,30mins to Re-CONFIRM this HINT being received from HrlyHi-EMA
So the logic I follow is :-
1. If prices falls from above Hi-EMA & closes below HrHi-EMA, pls check @ 34EMA , 30 mins. Once price BREAKS DOWN BELOW 34EMA , 30mins GO SHORT
&
2. If prices RISES from Below Lo-EMA & closes ABOVE HrLo-EMA, pls check @ 34EMA , 30 mins. Once price BREAKS-OUT ABOVE 34EMA , 30mins GO LONG
TSL in all trades is 21EMA, 5mins
And if price closes below DHEMA , the trade MORPHS into a SWING TRADE & then u carry it to the next day & so on to PROSPERITY !
Shri. Illango's gift is that the Hi-Lo EMA GIVES THE FIRST HINT OF DIRECTION,
We should use this Gift, & re-confirm it with 34EMA & trail it intra day with 21EMA , 5 mins
or for SWIGN TRADE, u can trail it with JNSAR, 10DEMA or SMO SAR (**change in direction of 5DEMA)
Our God is one, paths are many :-)
cheers
SMO
Shriram ji ,
ReplyDeletei totally agree with you on the "direction" part . The sell generated at 26th Mar'12 @ 10:00 close in the morning itself ...That's what i tried to say that if we apply filter of 10-15 points ..then we could have carried that sell generated at 5217 through out the day .
If possible look at the previous post which is yesterday's post
http://mytradingfile.blogspot.in/2012/03/hourly-high-low-combined-with-34-ema-on.html
and not today's post
Here I have written in detail .
And I have not considered 10 ema .I will send you the excel sheet.
Pls update your email address in your profile .
ReplyDeleteDear Shriramji,
ReplyDeleteI went through the suggested sites about moving averages. Got the rough idea about them. Many Thanks to you.
May I request you to guide me where to see the live 34ema,30minutes and 21ema, 5minutes charts.
And Can I use monthly JNSAR as stated by Shri Illangoji for positional nifty trade(As it is a simple technique which requires no insight into technicals or there can be more simple trades by using TT.
Please do not mind my naive questions.
Regards
Suraj
Hi smita,
ReplyDeletePls send to shriramoka@gmail.com
Its very nice to meet ppl interested in SYSTEM BASED TRADES.
It requires a gr8 sense of self-realisation & humility to detach from mental sensations like "i feel" & become ROBOTIC as a trader :-)
Best wishes
SMO
Hi Suraj,
ReplyDeleteI use www.google.com/finance to see LIVE CHARTS for varying INTRA DAY TIME FRAMES
1. Select Settings --> Candlestick
2. Open 2 windows of same NIFTY CHART. Choose time period as 5mins in 1st & 30mins in 2nd
3. Select Technicals --> Choose 21EMA in the 5mins chart & 34EMA in the 30mins chart
They say NECESSITY IS THE MOTHER OF INVENTION:
Since I have access only to GOOGLE in office,
this LiFO-Fibbo EMA SYSTEM was BORN TO ADAPT TO WHAT WAS AVAILABLE :-)
As far as the hi-Lo system goes...
its meant for TRADING varying T/fs, monthly is in no WAY SAFER THAN WEEKLY/DAILY or vice versa...
Pls read the comments above to Smita... u will understand how to interpret the H-Lo EMA system :-)
Best of Luck
SMO
And Suraj,
ReplyDeleteIf u wish u cud use the Simple funda
BUY when PRICE comes UP from BELOW And closes > Day JNSAR or 10DEMA or after u see 5-10DEMA BULL x-over
ulta for shorts...
Any of these will work on Weekly T/F (provided MARKET IS TRENDING) !!!!!!!!
BIG IF :-)