Day trading SETUP ( SENIORS PLS HELP )

( Seniors Pls Help )

Friends,
Pls try this ( TEST ) , i have back tested the following AND i think its WORKING , pls comment.

Trading Sail

CANDELSTICK
SMA - 20 DAY
TIME FRAM - 5 MINS

LONG - WHEN THERE IS A GREEN CANDLE WITH LOW ABOVE THE SMA
SHORT - WHEN THERE IS A RED CANDLE WITH HIGH BELOW SMA

COVER POSITION IN DIFFERENCE OF 1.5 RE WHEN MARKET IS TRADING WITHIN 50 - 80 POINTS

COVER POSITION IN DIFFERENCE OF 2 - 2.5 RS WHEN MARKET TRADES BEYOND THE 50 - 80 POINTS RANGE

STOP LOSS IS THE SMA

PLS COMMENT

gr8 yaar
i have not traded from your style, but i have looked some stks in online charting system and i think k really its working
very simple and easy way of trading
thnx

Re: ( Seniors Pls Help )

hi umesh this is impressive, but can u explain me these point -----"WHEN MARKET IS TRADING WITHIN 50 - 80 POINTS"

Re: ( Seniors Pls Help )

candlestics are used to get reversal pattern which bar lines fails to do.

simplyfying your proposition we get-

low of green candle is open(5 min duration) -> open above 20 day sma.
high of red candle is open->open bellow 20 day sma.

To cut a long story short,
u long when open is above 20 DSMA and u short when close is bellow 20 dsma.
This is not a reliable pattern like double top/bottom or triangles etc(in fact they too fail occasionaly)
When open is above 20 dsma does not mean it shall not go down and vice versa.
I think we should stick to well defined patterns only.

Re: ( Seniors Pls Help )

Dear Ajay ,
50 - 80 points mean a Range bound Senario .

Umesh

Re: ( Seniors Pls Help )

Dear Mr. Mahesh,
Pls dont mind but i m not able to understand the language written by you
, i m not saying this as i feel i m right , i m ready 2 accept if i m wrong as it wuld help me understand , pls explain simply & i can BET YOU whaterver i have written WORKS 6 - 8 times out of 10 , i m also studing an indicator other than RSI to confirm trends.

Umesh

Re: ( Seniors Pls Help )

looking simple and good
simple methods r generally profitable
plzz do back test and see the profitability %
regards

Re: ( Seniors Pls Help )

Dear Deb
DATE 28.5.08
I just Earned Shorted Sail at 10:23:09 164.75
covered 10:29:51 163.70

umesh

Re: ( Seniors Pls Help )

umesh i never said that u are wrong.
I just tried to interpret what u actually do.
But I doubted it's reliability in comparision with other well-known patterns.
Test your parameter in different market trends/phases over a longer period of time, if necessary add a condition or more to improve your success rate.

In your method u are overlooking possibility of immediate resistance/support in the chart of scrip u are trading,which may go against u.
If u cant understand the language of my previous post,please go thru the following link.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks