KST and CCI zero line cross overs combined with ema 15 on 100 minute charts

Klewtar

Well-Known Member
#1
I have discovered a new intra day system.

It is similar to the KST 0.00 line cross over technique on 100 minute charts that I posted on SH/TWH's EOD 315 system thread. Note that CCI can be used in place of KST.

One addition is that EMA 15 can be used to refine the above technique. I have chosen 100 minutes as the time frame as it covers most differences during market opening and closing prices. The system is designed to catch short to medium term trends.

I mostly trade commodities and the best commodities that the system is suited to trade on are Zinc and Crude Oil. The system can also be applied to Nickel, Copper and Lead. It can be applied to NIFTY and stocks but I've not really tested it there. I have noticed that the NIFTY and stocks tend to cling to the ema 15 line.

It is best to wait for the close of the 100 minute candle before making a trade.

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The system:
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Basic Long entry:
-KST has to be cross from less than 0.00 to more than 0.00 on 100 minute charts
-Price has to be above EMA 15

Basic Short entry:
-KST has to be cross from more than 0.00 to less than 0.00 on 100 minute charts
-Price has to be below EMA 15

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Exits and re-entries when long (KST has to always be above 0.00)

-When price dips below ema 15 on 100 minute charts, exit
-When price returns to above ema 15, re-enter (option to pyramid)
-When price dips below ema 15 and KST crosses less than 0, exit and go short

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Exits and re-entries when short (KST has to always be less than 0.00)

-When price rises above ema 15 on 100 minute charts, exit
-When price returns to less than ema 15, re-enter (option to pyramid)
-When price rises above ema 15 and KST crosses more than 0, exit and go long

Enjoy Trading
 

Klewtar

Well-Known Member
#2
Image of price about to cross below EMA 15 on 100 minute charts for crude oil (edit: The price did not cross below EMA 15) while KST has a red line value of more than 0.00

If the 100 minute candle's price closes below EMA 15, there is a chance to exit longs and to prepare for re-entering longs/optionally pyramid (if price returns to above EMA 15 and KST remains above 0.00) or instead, exit longs and go short (if price remains below EMA 15 and KST crosses below 0.00.)

Image where 100 minute bar has not closed, hence risky time to exit:



Edit:

The price does not seem to be willing to close below EMA 15 on 100 minute candles for today. Bulls may start a new long or pyramid today.

Cautious traders may wait and see whether price stays above ema 15 tomorrow stays higher than EMA 15 or dips below EMA 15 (implying an exit but not a short since KST/CCI values are not below 0.00)

 
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Klewtar

Well-Known Member
#3
Edit/ Note: EMA 20 seems more suited in the long run than EMA 15 on 100 minute charts (I cannot edit the above posts. The remaining posts shall have the number 15 edited to 20)

Similar to what was stated in the above post's last edit:

The day has ended favoring the bulls. While KST was above 0.00, price touched EMA 20 on 100 minute candles but the candles did not close with price below EMA 20 (exit from longs would have been executed if a candle closed with the price below EMA 20) hence the market for Crude Oil's March contracts, provided the opportunity today (after 23:19:59 in the previous post's last image) to pyramid or start new longs because the price touched EMA 20 but the candles did not close with the price below EMA 20:

 
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Klewtar

Well-Known Member
#4
An example (not a very successful trade) using the stock of Reliance:

Start Short (KST is below 0.00 and price is below ema 20: )




Exit Short (Price goes above ema 20: )




Stop shorting and start long (KST reaches above 0.00 and price is above ema 20: )




Exit Long (Price goes above ema 20: )




Edit: There has been some loss in the last trade, Reliance was used as an example of how the system could be applied to stocks even though it is more suited to metal commodities and energy commodities
 
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saivenkat

Well-Known Member
#9
thank you. ... great indicator

one more thing using red line means green line is totally useless fr us?

Not useless one IMO, may be aggressive traders, can take the green/ red cross-over in KST indi as an early indication for trend reversal, and can make entry once when the candle closes up/below the 20 EMA, a confirmation signal.

If one does so in this way.. rather than waiting for ZERO line cross in KST indicator.. then may be we could get an early entry of one or two bars..having said this..as an aggressive setup, i feel this has greater chances of whipsaws, when once market enters sideways mode....
 

Klewtar

Well-Known Member
#10
The system has no use for the green line (Edit:Actually the basic version system has no need for the green line but as the next post says, an advanced trader can use the green line readings on occasion.)

As @saivenkat mentioned, green and red line cross overs have their uses in other systems but in this system, the green line is not necessary.
 
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