How to catch the trend movement early?

[saivenkat]

Dear all,

In swing trades i need to have a settings that will at its best catch the trend movement in early stages?

I am attaching a sample chart with this post. I use RSI, MACD, in the 3/15 ema crossover.

The problem is each of them gives confirmation for buy, at different time intervals.
For example in the chart that i enclosed,
RSI gives buy at 4750, MACD at 4860, and 3/15 ema crossover at 4948 levels.

If one is very conservative in his trades, one can go for buy after all these confirmations have occured. In the mean while if one is aggressive or a risky trader like me, and wants to catch the trend at 4750 levels, what must be the settings in these indicators that we should have, or if there are different set of indicators with different combination please suggest me.

Thanks and regards
Saivenkat.

 

[Capricorn]

Try to get in at about the trend line..

 

[AW10]

saivenkat, how can u catch the trend early, but following all lagging indicators ?

And if you are waiting for all these indicators to confirm each other, maybe you are too late in the trend.

If you are fast trader, then my suggestion will be to change the tools ie. indicators that are u r using..You can't expect to win F1 with a car that has max speed of 150 kmph.

Trendline as mentioned by capricon is one such approach. Ofcourse, you will have to built trading system around it and backtest it to ensure that it is profitable.

Happy Trading

 

[sbhav]

hi saivenkat,
title of the thread and the indicators used do not go hand in hand as AW10 mentioned.
MACD IMO is the last indicator to wake up on daily TF.
and RSI in a strongly trending market is not of much use in daily TF.
if you are using rsi in hourly TF with a tweaked interpretation then it is a different matter altogether.
but the trends in hourly and daily TF might be at variance with each other.
need to do lot of research for catching a trend early in any TF.

ALL THE BEST,
SBHAV

 

[saivenkat]

saivenkat, how can u catch the trend early, but following all lagging indicators ?

And if you are waiting for all these indicators to confirm each other, maybe you are too late in the trend.

If you are fast trader, then my suggestion will be to change the tools ie. indicators that are u r using..You can't expect to win F1 with a car that has max speed of 150 kmph.

Trendline as mentioned by capricon is one such approach. Ofcourse, you will have to built trading system around it and backtest it to ensure that it is profitable.

Happy Trading

Thank you AW10 and Capricorn, for giving me suggestion. As capricon said, i tried to analyze nifty with the trend lines, and i have come up with a chart.

Regards
Saivenkat.

 

[linkon7]

follow the weekly charts and then wait for a divergence in EOD chart to take a trade in the direction as suggested by the weekly....

I trade the CCI and combine it with a few indicators to tell me when is the ideal time to get in. In the weekly chart, CCI went below the -100 mark and then turned up to cross -100 from below. you can see the green bar marked in a circle. That was when the conventional cci traders would assume trend is gone bullish.

But if you want to be aggressive, then the warning signal was when cci-6 crossed the CCI-14 two bars back. Thats when we start looking for divergence in any oscillators to give us the early entry....

This is the histogram of macd.... and when prices made a lower low, histogram made a Higher low... We draw a horizontal line above the pivot high of the histogram and enter long when the line gets broken. For confirmation, you might want to look for a stoch cross. Your entry would be 4766...on eod...

 

[saivenkat]

Thanks linkon7 for your wonderful charts and nice response. To be honest with you, i add bit, by bit, everyday when i read your posts in TJ.
What i learnt today was when the price makes lower low, and indicators make higher high, and with stoch lines crossing, we can buy.

Thanks again a ton

Regards
Saivenkat.

 

[AW10]

Thanks linkon7 for your wonderful charts and nice response. To be honest with you, i add bit, by bit, everyday when i read your posts in TJ.
What i learnt today was when the price makes lower low, and indicators make higher high, and with stoch lines crossing, we can buy.

Thanks again a ton

Regards
Saivenkat.

But - when /where do you sell ?

In order to make money, or to limit losses, we need to know when to sell.
Entry is one of the least significant part of a trade. Major challanges of trading starts coming up only after entry is made.

Happy Trading

 

[alroyraj]

Thank you AW10 and Capricorn, for giving me suggestion. As capricon said, i tried to analyze nifty with the trend lines, and i have come up with a chart.

Regards
Saivenkat.

The oscillators may give the indication that it is entering overbought and hence to sell. But remember the question is when to sell. The oscillators can still go further upwards towards 80-90. Also looking at the EOD chart it clearly is trending so you ought to check the weekly trend then daily trend and lastly the 15 min and then 5 min time frame . Basically this has to be compulsorily checked before entering into a position since it is the recent price action. Checking in multi time frames is one of AW10 cardinal rules.
Also people speak of multi collinearily but another thing I have observed from other TA settings sepecially the time. It helps to confirm the trend in different TF eg RSI 14 and MACD 26,12,9.

 

[alroyraj]

Thank you AW10 and Capricorn, for giving me suggestion. As capricon said, i tried to analyze nifty with the trend lines, and i have come up with a chart.

Regards
Saivenkat.

The oscillators may give the indication that it is entering overbought and hence to sell. But remember the question is when to sell. The oscillators can still go further upwards towards 80-90. Also looking at the EOD chart it clearly is trending so you ought to check the weekly trend then daily trend and lastly the 15 min and then 5 min time frame . Basically this has to be compulsorily checked before entering into a position since it is the recent price action. Checking in multi time frames is one of AW10 cardinal rules.
Also people speak of multi collinearily but another thing I have observed from other TA settings especially the time. It helps to confirm the trend in different TF eg RSI 14 and MACD 26,12,9. :clap: