SH's trading the 'greater fool' zone

#12
An example of Nifty futures intraday timeframes. I have used 30 minutes and envelope of 1.5% around 17 SMA.

Green dots show greater fool zones where shorts could have been exited and longs could have been taken targetting 15 EMA. (or alternatively hedge)

Red dots show greater fool zones where longs could have been exited and shorts initiated targetting 15 EMA. (or alternatively hedge)

Cheers
SH



Uploaded with ImageShack.us
 

trade4joisar

Well-Known Member
#13
An example of Nifty futures intraday timeframes. I have used 30 minutes and envelope of 1.5% around 17 SMA.

Green dots show greater fool zones where shorts could have been exited and longs could have been taken targetting 15 EMA. (or alternatively hedge)

Red dots show greater fool zones where longs could have been exited and shorts initiated targetting 15 EMA. (or alternatively hedge)

Cheers
SH




Uploaded with ImageShack.us
In Icharts where can i set envelope with SMA 17?
 
#14
How to upload images explained here in Canteen. I am using Imgur.com. Of course, imageshack has similar procedure. Of course, your traderji quota is not used.

You can find a shortcut method in my notes under "site related" heading.
 
#15
OK - one more example to show how this strategy can be used to make money in longs even in the worst performing stocks.

Posted below is Kingfisher daily charts, everyone knows how it has crashed from 70 to 20 within an year. However if you wanted to play longs in Kingfisher in last 1 year and make money .. where do you buy?

Answer is 'Buy when price gets to greater fool zone and book profits when 15 EMA reached'

I have plotted 15% around 17 SMA on Kingfisher futures daily charts. Green dots are where the stock could have been bought/accumulated for quick gains.

Red dots are where stock could have been shorted (its currently a good stock to shorts based on this strategy).

I hope these examples have helped you... post your own charts and I would like to see if you have understood the concept.

Cheers
SH

 

Similar threads