Was the CRASH EXPECTED == YES IT WAS

[AncientLion]

Thanks, Jungle Lion, for your replies.

I know very little about FOREX and was just curious. You mentioned some trading rules, would you be willing to share them with us?

Best,
agarth

Well when it comes to forex there are certain golden rules to trading and the same apply elsewhere also.

We take forex as a measure because the $$ news applies to stock markets very strongly, if $$ gains strength very sharply then the Indian stock markets crash very badly.

Being forex traders we get advance warning on what to expect on the stock markets the next day, this comes with practice.

One of the rules specifies " Plan your trade and then trade your plan "

Be very careful in planning your trades, look into all aspects including what levels to expect and the waiting period.

In forex we consider a waiting period of more than 24 hours to get profits as BS (bullshit) the same applies in stocks, the waiting time to get profits should be the least, only then it is a good trade.

This comes with excellent technical analysis of the stocks over daily or weekly or monthly periods depending on your holding pattern.

There are other rules like trade only when you are fully confident on profits to be earned, never never trade based on recommendations and so on.

But plan your trade is very very important.

 

[AncientLion]

yes it was expected , but the most interesting point is that who is actual gainer of crash ???
gainer was only and only finance minister of india ,
he is the person behind this manipulation and creation of unjustice statement .
he should be more responsible for justice the post of finance minister of india. he should not play the role advocate of big FII and big tycoon of market by way of statements creation for crash and provide opportunity for big players and FII to buy at low level and make again price high and then sell it.
thanks.
nishant choudhary (ca)

Remember one thing always, it is the news which follows the technical analysis of the charts, not the charts.

If the harts say the markets have entered into overbought area then some sort of news will always end up crashing it, this has happened everytime in the past if you do backtesting.

And this happens regularly in forex, no wonder we are able to fo recast extremely volative news events hours before they happen.

 

[garthastro]

Well when it comes to forex there are certain golden rules to trading and the same apply elsewhere also.

We take forex as a measure because the $$ news applies to stock markets very strongly, if $$ gains strength very sharply then the Indian stock markets crash very badly.

Being forex traders we get advance warning on what to expect on the stock markets the next day, this comes with practice.

One of the rules specifies " Plan your trade and then trade your plan "

Be very careful in planning your trades, look into all aspects including what levels to expect and the waiting period.

In forex we consider a waiting period of more than 24 hours to get profits as BS (bullshit) the same applies in stocks, the waiting time to get profits should be the least, only then it is a good trade.

This comes with excellent technical analysis of the stocks over daily or weekly or monthly periods depending on your holding pattern.

There are other rules like trade only when you are fully confident on profits to be earned, never never trade based on recommendations and so on.

But plan your trade is very very important.

Hi Jungle Lion,

The information you have given is excellent. I've heard the term "trade plan" before. Can you give a few more details about creating one?

Thanks,
agarth

 

[saji oommen]

Hello Jungle Lion,

Thanks for the reply regarding data import into MT4. I was aware of the server method in your reply . This was stated in metatrader site. But it is too expensive for me . I was pondering if there was any other easy method hence my query to you.

I fully agree with one of your comments. I quote below

"One of the rules specifies " Plan your trade and then trade your plan "

Be very careful in planning your trades, look into all aspects including what levels to expect and the waiting period.

In forex we consider a waiting period of more than 24 hours to get profits as BS (bullshit) the same applies in stocks, the waiting time to get profits should be the least, only then it is a good trade."

Regards

Saji

 

[RSI]

Hello Rk

Yes you are correct. I was more interested in how he got NSE data into MT4. Some additional information if you would like

Regarding MM levels interpretation is as follows


8/8 th's and 0/8 th's Lines (Ultimate Resistance)
These lines are the hardest to penetrate on the way up, and give the greatest support on the way down.
(Prices may never make it thru these lines).

7/8 th's Line (Weak, Stall and Reverse)
This line is weak. If prices run up too far too fast, and if they stall at this line they will reverse down fast.
If prices do not stall at this line they will move up to the 8/8 th's line.

6/8 th's and 2/8 th's Lines (Pivot, Reverse)
These two lines are second only to the 4/8 th's line in their ability to force prices to reverse.
This is true whether prices are moving up or down.

5/8 th's Line (Top of Trading Range)
The prices of all entities will spend 40% of the time moving between the 5/8 th's and 3/8 th's lines.
If prices move above the 5/8 th's line and stay above it for 10 to 12 days, the entity is said to be selling at a premium to what one wants to pay for it and prices will tend to stay above this line in the "premium area".
If, however, prices fall below the 5/8 th's line then they will tend to fall further looking for support at a lower level.



4/8 th's Line (Major Support/Resistance)
This line provides the greatest amount of support and resistance. This line has the greatest support when prices are above it and the greatest resistance when prices are below it. This price level is the best level to sell and buy against.

3/8 th's Line (Bottom of Trading Range)
If prices are below this line and moving upwards, this line is difficult to penetrate.
If prices penetrate above this line and stay above this line for 10 to 12 days then prices will stay above this line and spend 40% of the time moving between this line and the 5/8 th's line.

So sensex has closed above 4/8th line and if it holds good.

Regards

Saji

Hello Saji and Junglee Lion,
Thanks for the information. If you could explain a little bit further, I shall be thankful to you. My questions are

1. What are these MM levels? Is it Murre Math Systems? (Is the spelling correct?) or is it something else?

2. Where to find literature on this?

3. How and where do you set/decide 0/8 level and 8/8 level?
Kindly explain. Thanks in advance and regards
R. S. Iyer

 

[AncientLion]

Hello Saji and Junglee Lion,
Thanks for the information. If you could explain a little bit further, I shall be thankful to you. My questions are

1. What are these MM levels? Is it Murre Math Systems? (Is the spelling correct?) or is it something else?

2. Where to find literature on this?

3. How and where do you set/decide 0/8 level and 8/8 level?
Kindly explain. Thanks in advance and regards
R. S. Iyer

Murray Math

In very very simple words, forget the x/9 levels, just remember this:

• Upper silver or white lines are the maximum the price can go up in a particular week's trend
• lower silver or white lines are the maximum price can go down
• the purple line is the median and the most like spot for the price to move to
• the yellow lines are the immediate support resistance levels, so if in the silver zone, then first target is the yellow lines
• Always expect the price to move to the immediate upper or lower line first.

 

[moneypick]

Metastock formula for Murray Math is :-

------------------8-----------------------

SqW:=Input("Square Width (Days)",4,256,64);
MM:=Input("Start Date Month",1,12,10);
DD:=Input("Start Date Day ",1,31, 5);
YY:=Input("Start Date Year ",1700,2100,1998);

T0:=LastValue(ValueWhen(1,DayOfMonth()=DD AND
Month()=MM AND
Year()=YY,Cum(1)));

Sqrs:=Int((LastValue(Cum(1))-T0)/SqW)-1;

S0:=T0+(Sqrs*SqW);

Lo:=LastValue(ValueWhen(1,Cum(1)=S0+SqW-1,
LLV(Min(H,L),SqW)));

Hi:=LastValue(ValueWhen(1,Cum(1)=S0+SqW-1,
HHV(Max(H,L),SqW)));

Sf:=
If(Hi>25,If(Log(0.4*Hi)/Log(10)-
Int(Log(0.4*Hi)/Log(10))>0,
Exp(Log(10)*(Int(Log(0.4*Hi)/Log(10))+1)),
Exp(Log(10)*(Int(Log(0.4*Hi)/Log(10))))),
100*Exp(Log(8)*(Int(Log(0.005*Hi)/Log(8)))));

N:=
If(Log(Sf/(Hi-Lo))/Log(8)<=0,0,
If(Frac(Log(Sf/(Hi-Lo))/Log(8))=0,
Int(Log(Sf/(Hi-Lo))/Log(8)),
Int(Log(Sf/(Hi-Lo))/Log(8))+1));

Si:=Sf*Exp(-N*Log(8));

M:=Int(((1/Log(2))*Log((Hi-Lo)/Si))+.00001);

I:=Round(((Hi+Lo)*.5)/(Si*Exp((M-1)*Log(2))));

B:=(I-1)*Si*Exp((M-1)*Log(2));
TT:=(I+1)*Si*Exp((M-1)*Log(2));

Er:=If(Hi-TT>0.25*(TT-B) OR
B-Lo>0.25*(TT-B),1,0);

MM:=If(Er=0,M,If(Er=1 AND M<2,M+1,0));
NN:=If(Er=0,N,If(Er=1 AND M<2,N,N-1));

Si:=Sf*Exp(-NN*Log(8));

I:=Round(((Hi+Lo)*.5)/
(Si*Exp((MM-1)*Log(2))));

B:=ValueWhen(1,Cum(1)>=S0,
(I-1)*Si*Exp((MM-1)*Log(2)));

TT:=ValueWhen(1,Cum(1)>=S0,
(I+1)*Si*Exp((MM-1)*Log(2)));

B;

{L1:=}ValueWhen(1,Cum(1)>=S0,
B+(0.125*(TT-B)));

{L2:=}ValueWhen(1,Cum(1)>=S0,
B+(2.0*(0.125*(TT-B))));

{L3:=}ValueWhen(1,Cum(1)>=S0,
B+(3.0*(0.125*(TT-B))));

{L4:=}ValueWhen(1,Cum(1)>=S0,
B+(4.0*(0.125*(TT-B))));

{L5:=}ValueWhen(1,Cum(1)>=S0,
B+(5.0*(0.125*(TT-B))));

{L6:=}ValueWhen(1,Cum(1)>=S0,
B+(6.0*(0.125*(TT-B))));

{L7:=}ValueWhen(1,Cum(1)>=S0,
B+(7.0*(0.125*(TT-B))));

TT;

------------------8-----------------------

 

[AncientLion]

Murray Math Indicator

//+------------------------------------------------------------------+
//| Murrey_Math_MT_VG.mq4 |
//| Copyright 2004, Vladislav Goshkov (VG). |
//| [email protected] |
//+------------------------------------------------------------------+
#property copyright "Vladislav Goshkov (VG)."
#property link "[email protected]"

#property indicator_chart_window

// ============================================================================================
// * 8/8 0/8 ( ).
// * .
// ============================================================================================
//* 7/8 (, ). Weak, Stall and Reverse
//* . ,
//* . , 8/8.
// ============================================================================================
//* 1/8 (, ). Weak, Stall and Reverse
//* . ,
//* . , 0/8.
// ============================================================================================
//* 6/8 2/8 (, ). Pivot, Reverse
//* 4/8 .
// ============================================================================================
//* 5/8 ( ). Top of Trading Range
//* 40% , 5/8 3/8 .
//* 5/8 10-12 ,
//* , ,
//* 5/8, . , , 5/8,
//* .
// ============================================================================================
//* 3/8 ( ). Bottom of Trading Range
//* , .
//* 10-12 ,
//* 40% 5/8 .
// ============================================================================================
//* 4/8 ( /). Major Support/Resistance
//* /. .
//* 4/8, . 4/8,
//* .
// ============================================================================================
extern int P = 64;
extern int MMPeriod = 60;
extern int StepBack = 0;

extern color mml_clr_m_2_8 = White; // [-2]/8
extern color mml_clr_m_1_8 = White; // [-1]/8
extern color mml_clr_0_8 = Aqua; // [0]/8
extern color mml_clr_1_8 = Yellow; // [1]/8
extern color mml_clr_2_8 = Red; // [2]/8
extern color mml_clr_3_8 = Green; // [3]/8
extern color mml_clr_4_8 = DarkOrchid; // [4]/8
extern color mml_clr_5_8 = Green; // [5]/8
extern color mml_clr_6_8 = Red; // [6]/8
extern color mml_clr_7_8 = Yellow; // [7]/8
extern color mml_clr_8_8 = Aqua; // [8]/8
extern color mml_clr_p_1_8 = White; // [+1]/8
extern color mml_clr_p_2_8 = White; // [+2]/8

extern int mml_wdth_m_2_8 = 2; // [-2]/8
extern int mml_wdth_m_1_8 = 1; // [-1]/8
extern int mml_wdth_0_8 = 1; // [0]/8
extern int mml_wdth_1_8 = 1; // [1]/8
extern int mml_wdth_2_8 = 1; // [2]/8
extern int mml_wdth_3_8 = 1; // [3]/8
extern int mml_wdth_4_8 = 1; // [4]/8
extern int mml_wdth_5_8 = 1; // [5]/8
extern int mml_wdth_6_8 = 1; // [6]/8
extern int mml_wdth_7_8 = 1; // [7]/8
extern int mml_wdth_8_8 = 1; // [8]/8
extern int mml_wdth_p_1_8 = 1; // [+1]/8
extern int mml_wdth_p_2_8 = 2; // [+2]/8

extern color MarkColor = Blue;
extern int MarkNumber = 217;


double dmml = 0,
dvtl = 0,
sum = 0,
v1 = 0,
v2 = 0,
mn = 0,
mx = 0,
x1 = 0,
x2 = 0,
x3 = 0,
x4 = 0,
x5 = 0,
x6 = 0,
y1 = 0,
y2 = 0,
y3 = 0,
y4 = 0,
y5 = 0,
y6 = 0,
octave = 0,
fractal = 0,
range = 0,
finalH = 0,
finalL = 0,
mml[13];

string ln_txt[13],
buff_str = "";

int
bn_v1 = 0,
bn_v2 = 0,
OctLinesCnt = 13,
mml_thk = 8,
mml_clr[13],
mml_wdth[13],
mml_shft = 35,
nTime = 0,
CurPeriod = 0,
nDigits = 0,
i = 0;
int NewPeriod=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init() {
//---- indicators
MMPeriod=Period();
if(MMPeriod>0)
NewPeriod = P*MathCeil(MMPeriod/Period());
else NewPeriod = P;

ln_txt[0] = "[-2/8]P";// "extremely overshoot [-2/8]";// [-2/8]
ln_txt[1] = "[-1/8]P";// "overshoot [-1/8]";// [-1/8]
ln_txt[2] = "[0/8]P";// "Ultimate Support - extremely oversold [0/8]";// [0/8]
ln_txt[3] = "[1/8]P";// "Weak, Stall and Reverse - [1/8]";// [1/8]
ln_txt[4] = "[2/8]P";// "Pivot, Reverse - major [2/8]";// [2/8]
ln_txt[5] = "[3/8]P";// "Bottom of Trading Range - [3/8], if 10-12 bars then 40% Time. BUY Premium Zone";//[3/8]
ln_txt[6] = "[4/8]P";// "Major Support/Resistance Pivotal Point [4/8]- Best New BUY or SELL level";// [4/8]
ln_txt[7] = "[5/8]P";// "Top of Trading Range - [5/8], if 10-12 bars then 40% Time. SELL Premium Zone";//[5/8]
ln_txt[8] = "[6/8]P";// "Pivot, Reverse - major [6/8]";// [6/8]
ln_txt[9] = "[7/8]P";// "Weak, Stall and Reverse - [7/8]";// [7/8]
ln_txt[10] = "[8/8]P";// "Ultimate Resistance - extremely overbought [8/8]";// [8/8]
ln_txt[11] = "[+1/8]P";// "overshoot [+1/8]";// [+1/8]
ln_txt[12] = "[+2/8]P";// "extremely overshoot [+2/8]";// [+2/8]

//mml_shft = 3;
mml_thk = 3;

//
mml_clr[0] = mml_clr_m_2_8; mml_wdth[0] = mml_wdth_m_2_8; // [-2]/8
mml_clr[1] = mml_clr_m_1_8; mml_wdth[1] = mml_wdth_m_1_8; // [-1]/8
mml_clr[2] = mml_clr_0_8; mml_wdth[2] = mml_wdth_0_8; // [0]/8
mml_clr[3] = mml_clr_1_8; mml_wdth[3] = mml_wdth_1_8; // [1]/8
mml_clr[4] = mml_clr_2_8; mml_wdth[4] = mml_wdth_2_8; // [2]/8
mml_clr[5] = mml_clr_3_8; mml_wdth[5] = mml_wdth_3_8; // [3]/8
mml_clr[6] = mml_clr_4_8; mml_wdth[6] = mml_wdth_4_8; // [4]/8
mml_clr[7] = mml_clr_5_8; mml_wdth[7] = mml_wdth_5_8; // [5]/8
mml_clr[8] = mml_clr_6_8; mml_wdth[8] = mml_wdth_6_8; // [6]/8
mml_clr[9] = mml_clr_7_8; mml_wdth[9] = mml_wdth_7_8; // [7]/8
mml_clr[10] = mml_clr_8_8; mml_wdth[10]= mml_wdth_8_8; // [8]/8
mml_clr[11] = mml_clr_p_1_8; mml_wdth[11]= mml_wdth_p_1_8; // [+1]/8
mml_clr[12] = mml_clr_p_2_8; mml_wdth[12]= mml_wdth_p_2_8; // [+2]/8


//----
return(0);
}

//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit() {
//---- TODO: add your code here
Comment(" ");
for(i=0;i<OctLinesCnt;i++) {
buff_str = "mml"+i;
ObjectDelete(buff_str);
buff_str = "mml_txt"+i;
ObjectDelete(buff_str);
buff_str = "MML_LatestCulcBar";
ObjectDelete(buff_str);
}
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start() {

//---- TODO: add your code here

if( (nTime != Time[0]) || (CurPeriod != Period()) ) {

//price
bn_v1 = Lowest(NULL,0,MODE_LOW,NewPeriod+StepBack,StepBack);
bn_v2 = Highest(NULL,0,MODE_HIGH,NewPeriod+StepBack,StepBack);

v1 = Low[bn_v1];
v2 = High[bn_v2];

//determine fractal.....
if( v2<=250000 && v2>25000 )
fractal=100000;
else
if( v2<=25000 && v2>2500 )
fractal=10000;
else
if( v2<=2500 && v2>250 )
fractal=1000;
else
if( v2<=250 && v2>25 )
fractal=100;
else
if( v2<=25 && v2>12.5 )
fractal=12.5;
else
if( v2<=12.5 && v2>6.25)
fractal=12.5;
else
if( v2<=6.25 && v2>3.125 )
fractal=6.25;
else
if( v2<=3.125 && v2>1.5625 )
fractal=3.125;
else
if( v2<=1.5625 && v2>0.390625 )
fractal=1.5625;
else
if( v2<=0.390625 && v2>0)
fractal=0.1953125;

range=(v2-v1);
sum=MathFloor(MathLog(fractal/range)/MathLog(2));
octave=fractal*(MathPow(0.5,sum));
mn=MathFloor(v1/octave)*octave;
if( (mn+octave)>v2 )
mx=mn+octave;
else
mx=mn+(2*octave);


// calculating xx
//x2
if( (v1>=(3*(mx-mn)/16+mn)) && (v2<=(9*(mx-mn)/16+mn)) )
x2=mn+(mx-mn)/2;
else x2=0;
//x1
if( (v1>=(mn-(mx-mn)/8))&& (v2<=(5*(mx-mn)/8+mn)) && (x2==0) )
x1=mn+(mx-mn)/2;
else x1=0;

//x4
if( (v1>=(mn+7*(mx-mn)/16))&& (v2<=(13*(mx-mn)/16+mn)) )
x4=mn+3*(mx-mn)/4;
else x4=0;

//x5
if( (v1>=(mn+3*(mx-mn)/8))&& (v2<=(9*(mx-mn)/8+mn))&& (x4==0) )
x5=mx;
else x5=0;

//x3
if( (v1>=(mn+(mx-mn)/8))&& (v2<=(7*(mx-mn)/8+mn))&& (x1==0) && (x2==0) && (x4==0) && (x5==0) )
x3=mn+3*(mx-mn)/4;
else x3=0;

//x6
if( (x1+x2+x3+x4+x5) ==0 )
x6=mx;
else x6=0;

finalH = x1+x2+x3+x4+x5+x6;

// calculating yy
//y1
if( x1>0 )
y1=mn;
else y1=0;

//y2
if( x2>0 )
y2=mn+(mx-mn)/4;
else y2=0;

//y3
if( x3>0 )
y3=mn+(mx-mn)/4;
else y3=0;

//y4
if( x4>0 )
y4=mn+(mx-mn)/2;
else y4=0;

//y5
if( x5>0 )
y5=mn+(mx-mn)/2;
else y5=0;

//y6
if( (finalH>0) && ((y1+y2+y3+y4+y5)==0) )
y6=mn;
else y6=0;

finalL = y1+y2+y3+y4+y5+y6;

for( i=0; i<OctLinesCnt; i++) {
mml = 0;
}
//Alert(finalL);
dmml = (finalH-finalL)/8;

mml[0] =(finalL-dmml*2); //-2/8
for( i=1; i<OctLinesCnt; i++) {
mml = mml[i-1] + dmml;
}
for( i=0; i<OctLinesCnt; i++ ){
buff_str = "mml"+i;
if(ObjectFind(buff_str) == -1) {
ObjectCreate(buff_str, OBJ_HLINE, 0, Time[0], mml);
ObjectSet(buff_str, OBJPROP_STYLE, STYLE_SOLID);
ObjectSet(buff_str, OBJPROP_COLOR, mml_clr);
ObjectSet(buff_str, OBJPROP_WIDTH, mml_wdth);
ObjectMove(buff_str, 0, Time[0], mml);
}
else {
ObjectMove(buff_str, 0, Time[0], mml);
}

buff_str = "mml_txt"+i;
if(ObjectFind(buff_str) == -1) {
ObjectCreate(buff_str, OBJ_TEXT, 0, Time[mml_shft], mml_shft);
ObjectSetText(buff_str, ln_txt, 8, "Arial", mml_clr);
ObjectMove(buff_str, 0, Time[mml_shft], mml);
}
else {
ObjectMove(buff_str, 0, Time[mml_shft], mml);
}
} // for( i=1; i<=OctLinesCnt; i++ ){

nTime = Time[0];
CurPeriod= Period();

string buff_str = "MML_LatestCulcBar";
if(ObjectFind(buff_str) == -1) {
ObjectCreate(buff_str, OBJ_ARROW,0, Time[StepBack], Low[StepBack]-2*Point );
ObjectSet(buff_str, OBJPROP_ARROWCODE, MarkNumber);
ObjectSet(buff_str, OBJPROP_COLOR, MarkColor);
}
else {
ObjectMove(buff_str, 0, Time[StepBack], Low[StepBack]-2*Point );
}

}

//---- End Of Program
return(0);
}
//+------------------------------------------------------------------+

 

[saji oommen]

Hello RSI,

The name is Murrey Math(http://www.murreymath.com). I use it in a simple way. What Murrey teaches is bit too complex for me. But his system is definitely useful and reliable if used properly. I can give you few materials if you require.

I cannot attach with traderji due to size limitation of file.Send me your PM. Any way a small word file i will attach with this reply. Especially go through the material in green color at the end of word document. These i had collected from various sources and attached with my amibroker formula for quick reference. These are experiences and methods of using murrey math of some real forex traders.That will be more than sufficient to trade little more confidently.

Regards

Saji

 

[AncientLion]

Saji

Now this thread is getting somewhere more constructive

Why do people have to stop others from helping, does it affect their trades?