My First AnalysisGAIL
- Thread starter Luckytrader
- Start date
Hi,
I found some where written about this strategy.
Not sure about it.
I have also attached a chart.
Plz comment.
Exponential moving average crossover strategy
Many traders would like to make this moving average system better or at least more sensitive to the market. Many strategy designers have transferred their perspective to an exponential moving average (EMA). This may sound scary, but is really quite simple:
Usage: When the fast EMA crosses above the slow EMA, a buy order is generated. When the slow EMA crosses above the fast EMA, a sell order is generated.
EMA: 7
EMA: 26
I found some where written about this strategy.
Not sure about it.
I have also attached a chart.
Plz comment.
Exponential moving average crossover strategy
Many traders would like to make this moving average system better or at least more sensitive to the market. Many strategy designers have transferred their perspective to an exponential moving average (EMA). This may sound scary, but is really quite simple:
Usage: When the fast EMA crosses above the slow EMA, a buy order is generated. When the slow EMA crosses above the fast EMA, a sell order is generated.
EMA: 7
EMA: 26
Last edited:
yes lucky i have also read it some where .instead of taking two moving average i wanted to use 12 EMA and price .. here what i want to say is if a trend is up then search a buy set up . for this wait for stock to pause when it is moving up and enter when its previous trend is resuming
so for this logic i wanted to say if 12 EMA is up then trend is up and when it pause dueto some profit booking ( not sell of) with low vollume(pullback ) then enter when the prevoius bars high is taken out ( this may indicate trend resuming )
so i wanted some comment on this method whether it is logical or not and wanted other members to modify it
Regards
Satya
so for this logic i wanted to say if 12 EMA is up then trend is up and when it pause dueto some profit booking ( not sell of) with low vollume(pullback ) then enter when the prevoius bars high is taken out ( this may indicate trend resuming )
so i wanted some comment on this method whether it is logical or not and wanted other members to modify it
Regards
Satya
Hi Satya Pinku,
Have you noticed a point in the charts posted by other members when I requested to concentrate on price and volume alone? What did they do to find out the direction?
1. They tried to draw trendlines.
2. They concentrated on chart patterns.
3. They concentrated on price movements much closely.
4. They also paid attention to volume movement in relation of price movement.
5. They tried to predict future movement from longer term charts.
6. I concentrated on basic candlestick charting methods.
There are many many more points, which I want you to discover by yourself one by one.
But let me tell one most important point from all these points described above. All of them tried to go to the most basic level. All them tried to be as simple as possible. All of them tried to be thorough on foundation level analysis. Don't you think these are most important lessons to be learnt before studying other indicators such as moving averages etc., which are in any way derived from price and are lagging indicators? There is a lesson to be learned here.
Thanks and regards
R. S. Iyer
Have you noticed a point in the charts posted by other members when I requested to concentrate on price and volume alone? What did they do to find out the direction?
1. They tried to draw trendlines.
2. They concentrated on chart patterns.
3. They concentrated on price movements much closely.
4. They also paid attention to volume movement in relation of price movement.
5. They tried to predict future movement from longer term charts.
6. I concentrated on basic candlestick charting methods.
There are many many more points, which I want you to discover by yourself one by one.
But let me tell one most important point from all these points described above. All of them tried to go to the most basic level. All them tried to be as simple as possible. All of them tried to be thorough on foundation level analysis. Don't you think these are most important lessons to be learnt before studying other indicators such as moving averages etc., which are in any way derived from price and are lagging indicators? There is a lesson to be learned here.
Thanks and regards
R. S. Iyer
- Joined
- Aug 17, 2005
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Nice strategy. You are identifying the trend based on 12 EMA. Pullback is below 12 EMA with low volumes. Low volumes is accepted and again crossover 12EMA is again trend resuming. Not sure why 12EMA,
I just want to paraphrase in more simpler way
Identifying the trend using Pivots. An uptrend is Higher Pivot High (rally) and Higher Pivot Lows (decline). The entries are on the Higher pivot lows. Generally 50% on higher pivot low and another 50% on take previous Higher Pivot High. Stop is break on the Higher pivot low.
So u concentrate only on price action and volumes. Volumes can help out to find out false breakouts most of the times. But you can built a similar system based on the above ideas.
You can use few indicators to find out the divergences.
Also market sentiments, global factors and so on gives an overall market conditions. Out of my experience, the most important factor is the Discipline.
Stick to what you have planned whatever may be the case. It helps u in the long run a lot.
Hope it helps u.
Regards
Raj
I just want to paraphrase in more simpler way
Identifying the trend using Pivots. An uptrend is Higher Pivot High (rally) and Higher Pivot Lows (decline). The entries are on the Higher pivot lows. Generally 50% on higher pivot low and another 50% on take previous Higher Pivot High. Stop is break on the Higher pivot low.
So u concentrate only on price action and volumes. Volumes can help out to find out false breakouts most of the times. But you can built a similar system based on the above ideas.
You can use few indicators to find out the divergences.
Also market sentiments, global factors and so on gives an overall market conditions. Out of my experience, the most important factor is the Discipline.
Stick to what you have planned whatever may be the case. It helps u in the long run a lot.
Hope it helps u.
Regards
Raj
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U
Hi,
For those who r concentrating on MA (EMA/ SMA etc),plz try to adopt some kind of adaptive MA (plz refer Karthik's thread).MACD is also on same catagory.1.5 yrs back i found Nifty was following 13 EMA ,few weeks back ,found Nifty has a cycle of 26 trading session.Half cycle (13) is always Analyst's have try to follow.
As u r concentrating on MA ,plz adopt some type of "Adaptive" type ,so when the cycle changes,you dont have to optimize again for the period.
My conception for MA is that :- it is most simplest way to state TREND,as i belive MACD or RMO will keep you on the right side of the mkt.
Cheers
Asish
For those who r concentrating on MA (EMA/ SMA etc),plz try to adopt some kind of adaptive MA (plz refer Karthik's thread).MACD is also on same catagory.1.5 yrs back i found Nifty was following 13 EMA ,few weeks back ,found Nifty has a cycle of 26 trading session.Half cycle (13) is always Analyst's have try to follow.
As u r concentrating on MA ,plz adopt some type of "Adaptive" type ,so when the cycle changes,you dont have to optimize again for the period.
My conception for MA is that :- it is most simplest way to state TREND,as i belive MACD or RMO will keep you on the right side of the mkt.
Cheers
Asish
Thank you very much Raj for your suggestion and it is help a lot now doubt is when stock is in up trend by making higher pivots and retrace then how to find the the entry point near higher low pivots . should we use candlestic patterns for entry points
if you can post some pivots analysis with some charts it will be help ful
Thanks again
Regards
Satya
if you can post some pivots analysis with some charts it will be help ful
Thanks again
Regards
Satya