Learn & earn money from the simplest methods

[sudhisari]

I am new in trading, I have some long term investment, but I would like to learn trading future & option, any one help me to start trading

Sudheer

 

[ag_fx]

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

I quite didnt understand it.....Do u mean it say if our PL is at 3000, then our PH only be at 45 points (15%of 3000)+PL and thus 3045. thus,a PH can only be considered over 3045? Am I right?
Also, how about updating the SL? Lets say our SL is at last PL of 3000 and we get new PL at 3030, but no new PH above 3045...Do we update our SL to higher PL or wait untill a new valid PH is formed?

Thanks

 

[Dev Mookerji]

Re: Filters

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?

SAR Immediately. No need to check MAs, as breaking of valid pivot low, MA shall be already on a sell mode.

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

Answer is already given in post No 111.

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.

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

Those are filters to avoid false signals

 

[ag_fx]

filters...so when u say 0.5% it means 0.5% value of the stock...so if we take nifty, which is at 4000 levels,our filter will be 20 points..right?

also, do we apply filters only to pivots or to the entries taken on close above/below ema too?
As in if a bar closes above ema, do we add filter to enter or just enter as soon as it closes above?


Thanks for the reply

 

[Dev Mookerji]

I quite didnt understand it.....Do u mean it say if our PL is at 3000, then our PH only be at 45 points (15%of 3000)+PL and thus 3045. thus,a PH can only be considered over 3045? Am I right?
Also, how about updating the SL? Lets say our SL is at last PL of 3000 and we get new PL at 3030, but no new PH above 3045...Do we update our SL to higher PL or wait untill a new valid PH is formed?

Thanks

Good observations its not 15% but 0.5%. Ammended now.

I quite didnt understand it.....Do u mean it say if our PL is at 3000, then our PH only be at 45 points (15%of 3000)+PL and thus 3045. thus,a PH can only be considered over 3045? Am I right?
Also, how about updating the SL? Lets say our SL is at last PL of 3000 and we get new PL at 3030, but no new PH above 3045...Do we update our SL to higher PL or wait untill a new valid PH is formed?

Thanks

We are considering here 5 min charts right? open a nifty chart in 5 min timeframe. Just watch a lot of pivots can be seen in first glance. To avoid false pivots I have mentioned here some difference should be there (in points) to recognise a valid pivot.

 

[Dev Mookerji]

filters...so when u say 0.5% it means 0.5% value of the stock...so if we take nifty, which is at 4000 levels,our filter will be 20 points..right?

Thanks for the reply

No, I said stocks ranging above 500, for them filter is 0.3%
below 500- its 0.5%

also, do we apply filters only to pivots or to the entries taken on close above/below ema too?
As in if a bar closes above ema, do we add filter to enter or just enter as soon as it closes above?

Filters for Pivots & SARs. No filter required for initial entry based on EMA.

 

[Nava]

Hi Dev,

Thanks for sharing this system.

Is this method works for intra-trading stocks in cash segment..?

That means fresh buy/sell and close the postion within a day.

(your example charts shown for Nifty-Future..)

 

[Dev Mookerji]

Hi Dev,

Is this method works for intra-trading stocks in cash segment..?

Yes

That means fresh buy/sell and close the postion within a day.

Yes it can be.

 

[milind2754]

dev sir , if i want to trade on 1 min timeframe using your pivot high/low and moving avg method then which ema value shall i use ?

 

[Dev Mookerji]

dev sir , if i want to trade on 1 min timeframe using your pivot high/low and moving avg method then which ema value shall i use ?

101 EMA will do.

But trading with 1 min chart will be difficult, as considering a pivot in one min chart is not an easy task.