Nifty30

[linkon7]

hi Linkon

just food fr thought frm my side....
why restrict urself to a 'time frame' ie.. why say that I would trade only 30min or hourly chart... mkt is continuous...we devide it into tfs and charts...
there r only two things happening in the mkt at any given point in time..either it is trending or it is rangebound...if ur system is such that it profits in a trending mkts...just wait fr the time when u see the scale tipped towards a 'trending' mkt.., and take ur entry, forget about the tfs...all u need is a daily chart...
another point...(if ur system is such that it does profit in a trending mkt.) why think of targets at all...let it come back and take u out..

regards

in essence a continuous series of data is broken into slabs to identify trend. Bigger the slab, lesser the distortion, poorer the trade location, wider the sl, bigger the profit target...

Point of debate is... smaller tf vrs higher tf.... trend changes in smaller tf first and then works its way up to higher tf. But this change is accompanied with lots of noise. The fakes are hard to distinguish from the genuine trend changers.

Another point in favour of higher tf is that it looks at the bigger picture, consolidation is more in smaller tf then higher ones. while 5 min tf might give us the trading range of 20 points, a 30 min tf might give us a range of 120. what is a clean break out on 5 min tf is just part of the range in 30 min...

Like at the end of friday session, 30 min remains in hold short with sl at 5926, while 5 min says clear hold long with 5833 as stop loss. ab mummy ki suno ya tummy ki....

 

[linkon7]

Anurag. Very valid point and I agree with you 100% on this.
It is we who have tried to put timelimit of x minutes as per clock to see the chart. In reality is mkt is continuous and doesn't care for the clock when action is on. To read real flow of mkt, my charts have to as low in tf as possible. In my daytrade, I use 1min chart. In my view, 150bar average on 1min chart will give lot more realistic picture of market than 5bar average on 30min chart.

Happy Trading

This is the exact essence of ichimuku trading system. Watching micro development in smaller tf to gauge change in sentiments in higher tf. I planned to borrow heavily from that system in this method.

Since my intention is to play the eod time frame, break down weekly tf into 65 slabs of 30 minutes each, will give me an idea of how the weekly time frame is progressing.

But i like the idea of breaking 5 ma on 30 min to 150 ma of 1 min tf.... :thumb::thumb: It actually helps in my phobia of wider stop loss....

 

[sumeetsj]

If we intend to imply moving averages to the study,
then we should try moving average on HIGH and LOW made by a candle.
Generally the MA is taken on the close only.
A combination of MA based on high and low of a candle(then it be any tf) i suppose can show a different picture.
I have never tried it though.

Pls comment

 

[linkon7]

If we intend to imply moving averages to the study,
then we should try moving average on HIGH and LOW made by a candle.
Generally the MA is taken on the close only.
A combination of MA based on high and low of a candle(then it be any tf) i suppose can show a different picture.
I have never tried it though.

Pls comment

High and low represents the extremes in a given time period. High is the highest buyers were willing to pay and Low is the lowest price sellers are willing to settle for in the same time period. The battle for both is finnaly settled at close.

Some use (H+L+C)/3 as the representative for the bar (CCI uses this as its input) , others use (H+L+C+c)/4 to represent net action of the bar.

But my preference is to use close for our calculation. Simple logic is, we wait for bar to close above or below a particular level and 10 seconds before the bar close is our entry timer. This gives us a better execution....

 

[linkon7]

...deleted....

 

[MurAtt]

...deleted....

 

[sumeetsj]

A couple of years ago i used to view charts of Nifty atm calls and puts,
just to find out whether are they bottoming out or topping and then,
the corresponding move in Nifty to concretize my idea of a long or short.
It had helped a lot that time. Also it used to be useful in BTST and STBT type of trades.
Nowadays i think due to price discovery method gap up and gap downs are not as they used to be. Hence cannot say much about BTST and STBT.
Basically if the ATM calls and puts show momentum there is a faster and a reliable move in the underlying.

Pls comment..

 

[anuragmunjal]

in essence a continuous series of data is broken into slabs to identify trend. Bigger the slab, lesser the distortion, poorer the trade location, wider the sl, bigger the profit target...

Point of debate is... smaller tf vrs higher tf.... trend changes in smaller tf first and then works its way up to higher tf. But this change is accompanied with lots of noise. The fakes are hard to distinguish from the genuine trend changers.

Another point in favour of higher tf is that it looks at the bigger picture, consolidation is more in smaller tf then higher ones. while 5 min tf might give us the trading range of 20 points, a 30 min tf might give us a range of 120. what is a clean break out on 5 min tf is just part of the range in 30 min...

Like at the end of friday session, 30 min remains in hold short with sl at 5926, while 5 min says clear hold long with 5833 as stop loss. ab mummy ki suno ya tummy ki....

hi Linkon

speaking of smaller tfs...the advantage is that at times u will be able to get into trend reversals early... the disadvantage....u will face a lot of noise...
it will even out in the long run...whtever u will make in getting in trend reversals 'early' would be lost when u face the wipshaws..
my point was different...why break the mkt into any kind of tfs whether it be 5 min or 30 min...look at the data as continuous...and form a system which takes 'continuous data' into conideration and not data broken up into tfs....

regards

 

[linkon7]

what aw10 said about using ma of 150 bars in 1 min instead of ma of 5 bars in 30 min actually made me re-look at my system... It made perfect sense but issue is getting rid of all the noise associated with smaller tf proved to be a bigger challenge than i expected...

One thing is for sure....

we get 345 bars of 1 min tf in one day... so 50% retracement of the highest high and the lowest low of the last 345 bars will be one of my trend deciders.... (plotted in purple)

TJ band of the 345 bars will be another of my trend decider.... (plotted in yellow dashed lines)

MA of 150 bar will represent trend cycle on 30 min tf.... (plotted in aqua blue)

MA of 25 bars will represent trend cycle on 5 min tf...(plotted in white)

5 ma of the last 5 bars will represent de-trended price (plotted in grey )

highest high of the last 15 bars and lowest low of the last 15 bars will act as my trigger (plotted in grey)

now what is left is trading methodology and risk management....

 

[linkon7]

This system is tailor made for my mentality. So a word of caution for the few who want to risk their hard earned money based on this system... please use the system only after you have back tested this method for at least 1 year.

Mentality wise:

I am comfortable

...following the system like a book

...with the knowledge that system is mechanical, so will get whipped badly on sideways days

...with small stop loss

...getting my stop loss hit several times

...holding positions for as long as system doesn't give a reversal

...carrying positions for the next day without fear of gaps

...follow risk management like a book

...sticking to one system one time at a time