Learn & earn money from the simplest methods

[Dev Mookerji]

Re: Tops & bottoms

I may have a few questions but those can wait till I completely digest all the threads. now an intermediate question regarding top and bottom

Most welcome sir.

is not March April 2008 and Jly 2008 bottoms. It is correct on hindsight later in the year that these are not bottoms but on real time in about April or July 2008 will these not lok like bottoms.
KEEP IT UP.

Could not get ur point properly.

 

[Dev Mookerji]

Moving average

Next Chapter : Moving Average - MA

What Does It Mean?

An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

 

[Dev Mookerji]

CLASSICAL MAs

Following MAs are considered as very useful, and hence used largely. Some classical trading systems are there based on following DMAs.

i) 10 DMA
ii) 13 DMA
iii) 21 DMA
iv) 30 DMA
v) 50 DMA
vi) 100 DMA
vii) 200 DMA

 

[Dev Mookerji]

WHY ONLY SEVEN MAs

I have mentioned here only 7 MAs, that doesn't mean other other averages ie. say 4/9/20/39 or other numbers have no importance.

Any body can use any time frame MAs which suits his trading system. But I shall discuss above as mentioned, because all of them having some other importance. I have backtested all systems based on MAs for the years and found all of them very useful.

 

[venkat1926]

Re: Tops & bottoms

Most welcome sir.



Could not get ur point properly.

sorry my mind must have been wobbly when I composed that message. sorry I shall again look into all the threads and see whether I can give my comments.

anyhow keep up your postings.

 

[Dev Mookerji]

Now I am telling here my first simplest trading system, based on 21 days MAs.

Take positions according to 21 days EMA alongwith price line (in 5 minutes chart).

Trading rules :

1. Buy when first time bar or candle closing above 21 days EMA. Keeping SL of previous Pivot Low .

2. Sell when first time bar or candle closing below High 21 days EMA. Keeping SL of previous Pivot Low.

3. While considering pivots low or high, price difference should be greater or lesser than 0.5% for pivot high or low respectively.

4. Neglect EMA crossover in between trade, means when in positions avoid fresh buy or sell signal based on MAs until SL is getting hits.

5. Fresh trade/Reverse ur positions once SL getting triggered.

Chart attached for better understanding.

 

[Dev Mookerji]

Difference between Pivot based system/MAs systems and tthe system I am describing.

Only based on MAs system may give a lot of whipsaws, specially in smaller time frame trades or in choppy trend.

In pivot based One may get confused about the entry by wrong selection of Pivots.

By merging both of them some whips and confusion about entry can be avoided. For taking entry pivot breaking is not necessary in this system. Thus waiting period for a fresh entry is lesser.

 

[Dev Mookerji]

Filters

Price below 500 - 0.5%

Price above 500 - 0.30%

 

[Dev Mookerji]

Keeping profit safe

1.Keep changing stops in ur favour to higher or lower pivots, according to long or short positions.

2. No Add ons, based on 5 min charts. Adds should be considered only on 30 min charts pivot breaks.

3. Instead of playing with Nifty play with Mini Nifty. Booking profit or adding positions shall be easy.

 

[ag_fx]

Re: Filters

Now I am telling here my first simplest trading system, based on 21 days MAs.

Take positions according to 21 days EMA alongwith price line (in 5 minutes chart).

Trading rules :

1. Buy when first time bar or candle closing above 21 days EMA. Keeping SL of previous Pivot Low .

2. Sell when first time bar or candle closing below High 21 days EMA. Keeping SL of previous Pivot Low.

3. While considering pivots low or high, price difference should be greater or lesser than 15% for pivot high or low respectively.

4. Neglect EMA crossover in between trade, means when in positions avoid fresh buy or sell signal based on MAs until SL is getting hits.

5. Fresh trade/Reverse ur positions once SL getting triggered.

Chart attached for better understanding.

Please help me in understanding this. I am taking a Long for example.

The candle must close above 21EMA on 5 min chart for taking a Long.

When we enter the long, our SL wil be last pivot Low on 5 min chart.

Now we dont enter or exit the position when prices and EMAs crossover.

We simply keep updating our SL to higher PLs.

Now, when the SL is hit, do we SAR immediately or do we wait for a price closing below 21 EMA for a short entry?

Also, do we add? If yes, how and when?

Price below 500 - 0.5%

Price above 500 - 0.30%

I didnt understand dese figures..cud u explain please?