A Moving Average Trading System

Dear Traderji,
I have been observing since I became a member of your forum with great awe that the forum has been a great contributor for the enhancement of knowledge of technical analysis. I am learning the technical analysis. I would like to know how you can pin point the market down trend like todays intraday market after 1:30 PM in Metatech software? I have set the moving average 3-13-39 days format. The Software gives the signal after some time may be about 10 minutes late. How it can be set so that it gives the correct signal at the exat time. Please tell me how other adjustments can be set in the software so that we can get maximum benifit. Thanking you in advance.
gvnarendra

Thank you for your comments!

About the 3 13 39 trading system, you can try reducing the time period of the price bars. For example if you are using 30 minute bar chart, reduce it to 15 minutes. If you are using a 15 or 10 minute bar chart reduce it to 5 minutes.

This way you will get earlier signals. But beware, earlier signals will always come at the cost of more whipsaws.

Thank you Traderji. I will try it for tomorrows market. Also I would like to know whether the systems in Metatech like Aroon, Chande momentum Oscillator, Stochastic Oscillator, ZigZag, etc can be used effectively (what parameters should be adjusted?) in real time trading hours. If so how it can be used. Are there any other softwares which can predict more perfectly? Please give us some light about these also. Thank you in advance.
gvnarendra.

I have observed couple of things i would like to know if someone has tried this and what are the results. if the opening price and high price is the same then the u could take ashort position in the stock and if open price and low is the same then we could take a long positions but u need to wait for 10 mins after market opens. ur stop loss could be high in first case and low in second case.

As far as predicting the markets using technical analysis is concerned I would suggest you to read this post.

Also there is a particular trend in nifty futures that has been observed.
u take the opening price if u assume that the markets are weak then u should be able to make 5 rs on the upper side from the open price and 10 rs on the lower side and if u assume that the market is strong the reverse applies.
what do u feel????

Good Idea!

I am going to try this strategy.

Where can i get a software for viewing charts showing prices ,moving avgs,ROCS,RSI,etc...?as i want to learn all about technical analysis for trading purpose.

You can start by getting hold of MetaStock.

There are a number of good books for learning technical analysis. If you do a search in this forum you will find plenty of recommendations for books on technical analysis.

Another good Post !!

Infact even in Market Wizards, Ed Seykota, the legendary trader, has spoken about his 15-25 exponential average crossover system.

Ed also stressed about very good money management strategies and discipline to follow signals.

Most traders are able to evolve good signal systems, but lose out due to bad discipline and build up strategies.


Cheers
Gurmeet