SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
Crusader, You are presuming that at 5454 Nifty levels Price bar touched 3 EMA, just because price rose up it would not touch the 3EMA, because as price rises so would the EMA, as per Excel sheets posted in this thread the 3EMA at close of Nifty 5454 would be around 5468!!!
After making a high when the Price retraces we are more likely to get a 3 EMA touch!! Now say after making a high of 5460, price retraces to say 5435, The 3 EMA would come down to around 5458, thus touching the 3EMA.. so we are shorting again when the price is going down!!
In this strategy WE DO NOT OPEN A LONG!!! My believe is that we need to keep both the strategies separate... combining them may confuse a lot of members here who are yet to get a complete hang of the strategy!!!
Frankly I dont know what is to be done if we exited today at open and the price continued to go down... would not like to put in my views as the same may be contra to SH's original plan and hence create more confusion than removing. Let me mention atleast what I have understood as per SH's strategy: You reenter only on 3 EMA touch!! So in case we exited today at open, we may or may not get a reentry and may loose part of some profit!! As clered by SH, we exit and reenter only when our trade is in Profit!!!
It did not happen today and we got decent levels to short again!!
After making a high when the Price retraces we are more likely to get a 3 EMA touch!! Now say after making a high of 5460, price retraces to say 5435, The 3 EMA would come down to around 5458, thus touching the 3EMA.. so we are shorting again when the price is going down!!
In this strategy WE DO NOT OPEN A LONG!!! My believe is that we need to keep both the strategies separate... combining them may confuse a lot of members here who are yet to get a complete hang of the strategy!!!
Frankly I dont know what is to be done if we exited today at open and the price continued to go down... would not like to put in my views as the same may be contra to SH's original plan and hence create more confusion than removing. Let me mention atleast what I have understood as per SH's strategy: You reenter only on 3 EMA touch!! So in case we exited today at open, we may or may not get a reentry and may loose part of some profit!! As clered by SH, we exit and reenter only when our trade is in Profit!!!
It did not happen today and we got decent levels to short again!!
I hope SH comments on this to dispel all doubts.
Hi all,
The 3 EMA exit under 315 is nothing but an adaptation of the market prediction strategy, the only difference being that we use it when in profits under 315 and we dont open a contra-trend trade here.
Rkkarnani is right that 3 EMA is dynamic during the day hence re-entry can happen when markets are falling down again (making 3 EMA touch the days highs). This is acceptable since we would have still got a higher entry from our exit point.
If after the exit markets keep falling, obviously 3 EMA will be dragged down to make it touch the candle at some point. This usually happens when markets come out of a tight range (read 2-3 whipsaws) and start trending strongly ..... in those scenarios its better not to exit at all. However even if you have exited, you need to wait for 3 EMA touch for re-entry, no matter if it means losing some profits.
Cheers
SH
The 3 EMA exit under 315 is nothing but an adaptation of the market prediction strategy, the only difference being that we use it when in profits under 315 and we dont open a contra-trend trade here.
Rkkarnani is right that 3 EMA is dynamic during the day hence re-entry can happen when markets are falling down again (making 3 EMA touch the days highs). This is acceptable since we would have still got a higher entry from our exit point.
If after the exit markets keep falling, obviously 3 EMA will be dragged down to make it touch the candle at some point. This usually happens when markets come out of a tight range (read 2-3 whipsaws) and start trending strongly ..... in those scenarios its better not to exit at all. However even if you have exited, you need to wait for 3 EMA touch for re-entry, no matter if it means losing some profits.
Cheers
SH
Crusader, You are presuming that at 5454 Nifty levels Price bar touched 3 EMA, just because price rose up it would not touch the 3EMA, because as price rises so would the EMA, as per Excel sheets posted in this thread the 3EMA at close of Nifty 5454 would be around 5468!!!
After making a high when the Price retraces we are more likely to get a 3 EMA touch!! Now say after making a high of 5460, price retraces to say 5435, The 3 EMA would come down to around 5458, thus touching the 3EMA.. so we are shorting again when the price is going down!!
In this strategy WE DO NOT OPEN A LONG!!! My believe is that we need to keep both the strategies separate... combining them may confuse a lot of members here who are yet to get a complete hang of the strategy!!!
Frankly I dont know what is to be done if we exited today at open and the price continued to go down... would not like to put in my views as the same may be contra to SH's original plan and hence create more confusion than removing. Let me mention atleast what I have understood as per SH's strategy: You reenter only on 3 EMA touch!! So in case we exited today at open, we may or may not get a reentry and may loose part of some profit!! As clered by SH, we exit and reenter only when our trade is in Profit!!!
It did not happen today and we got decent levels to short again!!
After making a high when the Price retraces we are more likely to get a 3 EMA touch!! Now say after making a high of 5460, price retraces to say 5435, The 3 EMA would come down to around 5458, thus touching the 3EMA.. so we are shorting again when the price is going down!!
In this strategy WE DO NOT OPEN A LONG!!! My believe is that we need to keep both the strategies separate... combining them may confuse a lot of members here who are yet to get a complete hang of the strategy!!!
Frankly I dont know what is to be done if we exited today at open and the price continued to go down... would not like to put in my views as the same may be contra to SH's original plan and hence create more confusion than removing. Let me mention atleast what I have understood as per SH's strategy: You reenter only on 3 EMA touch!! So in case we exited today at open, we may or may not get a reentry and may loose part of some profit!! As clered by SH, we exit and reenter only when our trade is in Profit!!!
It did not happen today and we got decent levels to short again!!
should I hold 5300 Minifty PE till Monday?
If your query is because you "expect" the mkt to go down further please refer to immediately preceeding post by Vinst!!!
However if you took the Minifty PE because 3 and 15 EMA gave a bearish crossover, you may hold it till the trend reverses... however the problem here would be loss of time value if market continues to remain sideways for a few sessions. For anyone holding a Future in Minifty as per this strategy should hold it as he is already around 100+ points in profit!!
However if you took the Minifty PE because 3 and 15 EMA gave a bearish crossover, you may hold it till the trend reverses... however the problem here would be loss of time value if market continues to remain sideways for a few sessions. For anyone holding a Future in Minifty as per this strategy should hold it as he is already around 100+ points in profit!!
Similar threads
-
Help Needed : Modified SH's 315 Strategy with Supertrend
- Started by Profittaker
- Replies: 2
-
-
-
SH's 315 Strategy - how to make it more comfortable and profitable!!
- Started by rkkarnani
- Replies: 260
-
