Daytrading Using Indicators

GENTS,


How to figure out using indicators strong powerful daytrades?

Clue is in M S T
M momentum slowstochastics
S strength RSI
T trend MACD

Use MST
and two Moving Averages 5 and 20

can we do it?

SEE CHARTS
http://finance.yahoo.com/q/ta?s=MARUTI.NS&t=1d&l=on&z=m&q=l&p=m20,m5&a=r14,m26-12-9,vm,w14&c=

http://finance.yahoo.com/q/ta?t=1d&l=on&z=m&q=l&p=m20,m5&a=r14,m26-12-9,vm,w14&c=&s=tamo.ns

http://finance.yahoo.com/q/ta?s=TATAMOTOR.NS&t=1d&l=on&z=m&q=l&p=m20,m5&a=r14,m26-12-9,vm,ss&c=

http://finance.yahoo.com/q/ta?s=MARUTI.NS&t=1d&l=on&z=l&q=l&p=m20,m5&a=r14,m26-12-9,vm,ss&c=


comment your opinion on chart based daytrading
with indicators

take only strong trades

Maruti on yesterday

time 10 to 11am
MST three indicators agree STRONGLY TOGETHER- NO CONFLICT
RSI STRENTH moving up 50 to 80
MACD TREND moving up- Trend strong - from 1 to 4
MOMENTUM-slowstochastics- Building up= Blueline above Redline-gap positive and
buy signal or (macd goes from below zero to above zero at 2pm )
moving average 5ma price minus 20ma price=solid positive=buy signal

PRICE minus 20minute MA= VALUE HIGH=BUY

BUY

------------------------------------------------------
NO SIGNAL ZONE 12 TO 1 PM


BUY AGAIN FROM 2-30PM

1 TO 2 PM SIGNALS CONFLICT

STRONG AGREEMENT,IN MST,AND VOLUME AVERAGE, red UP WARDS= 10 TO 11AM
----------------------------------------------------------

SELL SIGNAL 12 TO 1pm

momentum blueline goes below redline sell signal -one
strength RSI drops from 80 to 30 sell signal -2
trend MACD BLUE VERTICAL LINES GO BELOW RED LINE -sell signal 3
MA 20min MA MINUS price \POSITIVE and increasing=sell confirmation

exactly opposite signals from 1430hrs buy
(macd goes from below zero to above zero at 2pm ) zero cross over
High volume overshoot from 1510hrs

Conflict after 3pm from momentum slowstochastics
it doesnot agree with others
however majority 3 out of 4 agree

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what is the idea behind these rules? find just two solid trades in daytrading and make money
--------------------------------------------

Now look at Tata motors
verify my signals

http://finance.yahoo.com/q/ta?s=tamo.ns&t=1d&l=on&z=l&q=l&p=m20,m5&a=r14,m26-12-9,vm,ss&c=

Rsi strength neutral 10 to 11am rest positive buy signals

from 1 to 2pm
rsi neutral conflict
macd zero cross ok
momentum not clear conflict
price and MA clearsignal sell

from 3pm buy zone

macd blue line go inside redline below zero area buy ok
price and Ma AGREE
MOMENTUM AGREE blue line goes over redline good
RSI UP AGREE

look at volume moving average redline- it is up compared to previous hour value

price up volume up good stable signal

RVLV

great work

Dear Sir,

I Am Interested In Daytrading Using Indicators, Please Advise Me How To Use The Indicators And How To Read The Charts.

Thanks,
Ashok M Gandhi

Mr Am Gandhi

First thing
you must know about technical analysis indicators mentioned in the article.

The indicators are moving averages,slow stochastics,MACD,RSI,Volume-Moving average, you need to read deeply,learn about these first.
secondyou must do paper trading minimum 2 weeks to prove it works
third90% guys loose in daytrading. it is for bit matured and learned people,with more cash,so they can absorb losses easily.
you must know well about stoploss and trailing stoploss orders and how to use them.
FourthMoney management
once both are ok
fifthhave a plan about how to select stocks to daytrade,how to enter,exit,minimise losses.

PLEASE READ ABOUT PRECAUTIONS IN DAYTRADING AND PROTECTIVE ACTIONS NEEDED.=my other posts on this forum
I say this unless you read all articles on daytrading that are posted on this forum, dont begin anything.

If you can handle those,only then go for daytrading.
then you can do trading first with limited cash .

you have to learn things. I can give hints. you need a mentor-guide if you dont know much about trading.

EDUCATION IS FIRST STEP. It IS NOT A ONE DAY PROCESS. Can take months to years.

rvlv

Dear Sir,
Please let me know where can I find all your articles on the subject DAY TRADING, so that I can read all these articles and start paper trading before putting any money on the table
Thanks
Sharantaka

Daytrading money mgmt

here is a simple money mgmt technique.....imagine you have 1000 rs in your left pocket( whatever amount that you are comfortable losing in a day wrt your trading capital say 1% of it).......and whatever profits that you make goes into your right pocket and whatever losses are incurred are taken from the left pocket.......you may continue trading till the eod or any point till you feel too heavy in the right pocket, but never beyond the point where your left pocket is empty or too light......if you have zeroed in on a trading plan that you are comfortable with ( say any trade set up with a definite entry/exit/stoploss points) just wait for that set up to appear and trade the same repeatedly and only that one.....together with the money mgmt you would be in for a pleasant surprise after a months trading....

Dear RVLV,
As per your article named "day trading using on line charts", you have recommended to use 1 day chart from www.in.yahoo.com along wth recommended indicators for momentum,strength and trend. When I was trying to get these charts to open during market hours, I could not do so and I kept on getting the prompt "charts for technical analysis not available". Why does this happen.
Does one have to register with www.in.yahoo.com before attempting to trade, if yes how much are the charges per annum for this service? Kindly advise
Thanks
Sharantaka
[email protected]

Dear Sharantaka & rvlv,

In my experience the yahoo charts are lagging by 15 minutes (even if signed in) for all the indian stocks. Only the indices charts are almost real time. Hence for day trading these charts are not useful. If you people have better experience, please enlighten me.

Sharan, probably you might have missed the correct link.

Just follow this link and see whether you can open the chart. http://finance.yahoo.com/q/ta?s=MARUTI.NS&t=1d&l=on&z=m&q=l&p=&a=m26-12-9&c=
If opens you can tweak them to get what you want to see.

I am comforatable with Technical charts from BSE site. They are good for day trading as almost all indicators are available and the charts are real time charts. Unfortunately, NSE offers only basic price movement charts.

Another site to look for the realtime charts is http://www.icharts.in/charts.html. I am yet to explore the site completely.

You may have a look at http://www.traderji.com/software/7890-stock-charts-yahoo-site-excel.html a chart utility developed for viewing charts in excel. The software section at http://www.traderji.com/software/ gives you various tools developed by senior members of the forum, you will sure find so many good methods & tools for the trading. Hope you enjoy the journey at Traderji.

All the best
Chachi

Dear Chachi,
Thanks for your reply. I didn't mnow the charts were lagging by 15 minutes. I will try BSE charts and try
Sharantaka

i could not find charts on bse, can anybody give me the link.
thanks,
rajib.