SH's swing trading system - a simple way to play the markets

[Tradewithhunter]

Todays new HL 5343.90

..Amol

New high made so bull HL shifted to 5343 ...

Please note how the mkts have closed at 5440+ with bull HL at 5343 (100+ point difference).

So if mkts were to reverse tomorrow and hit 5342 to trigger our shorts we would have lost 100+ points from the peak.

this is where exit zones (greater fool's zone) based on 30 mins charts comes in handy. (already covered in a separate thread). And this is the profit booking strategy here under this thread (you can also use 3 EMA reversal sometimes to book on gap ups etc)


I will post about how to re-enter and how to pyramid over the weekend.

Till then enjoy your best friend ..the trend !!!

Cheers
SH

 

[amol_gh123]

New high made so bull HL shifted to 5343 ...

Please note how the mkts have closed at 5440+ with bull HL at 5343 (100+ point difference).

So if mkts were to reverse tomorrow and hit 5342 to trigger our shorts we would have lost 100+ points from the peak.

this is where exit zones (greater fool's zone) based on 30 mins charts comes in handy. (already covered in a separate thread). And this is the profit booking strategy here under this thread (you can also use 3 EMA reversal sometimes to book on gap ups etc)


I will post about how to re-enter and how to pyramid over the weekend.

Till then enjoy your best friend ..the trend !!!

Cheers
SH

Hi SH,

So roughly I could draw below rules for exit:
1) SAR is hit : Exit and take reverse position
2) Price hitting Greater fools zone: book profit and wait to re-enter
3) (optional) On daily chart at the opening, difference between 3 EMA and open price is more than 40-50 points : book profit and wait to re-enter

Plz confirm as not sure about 3rd point...

..Amol

 

[rangarajan]

Dear SH,
I am posting the chart of Gold for learning purpose.
Sorry for the poor markings as my comp knowledge is limited.
Pl discuss,how u would have traded this chart.
Initially Long SLR was triggered & Then Short SLR was also triggered without much profit & then again Long was stopped.
Have i understood yr method correctly.

 

[vinst]

Dear SH,
I am posting the chart of Gold for learning purpose.
Sorry for the poor markings as my comp knowledge is limited.
Pl discuss,how u would have traded this chart.
Initially Long SLR was triggered & Then Short SLR was also triggered without much profit & then again Long was stopped.
Have i understood yr method correctly.

long was reversed to short between 12:00 and 16:00 of 8-feb. that short is still ON with SAR 1748 or so (you have marked the high of this bar)

 

[rangarajan]

long was reversed to short between 12:00 and 16:00 of 8-feb. that short is still ON with SAR 1748 or so (you have marked the high of this bar)

Dear Vinst,
After the firstSAR for long, the stock pulled back to 15ema & again traded below the previous LL.
Hence the logical s/l for short should be 1747 & not 1752.
If it is correct,this s/l was taken & trade reversed to Long once again.
I had marked it with an up arrow.
For Long,the SAR to be 1724.
Stock went upto 1751 w/o triggering 1724.
My query is whether it is correct & if so whether the TWO failiures were part of the trading?If so,how to protect.
Pl discuss.

 

[Tradewithhunter]

Dear Vinst,
After the firstSAR for long, the stock pulled back to 15ema & again traded below the previous LL.
Hence the logical s/l for short should be 1747 & not 1752.
If it is correct,this s/l was taken & trade reversed to Long once again.
I had marked it with an up arrow.
For Long,the SAR to be 1724.
Stock went upto 1751 w/o triggering 1724.
My query is whether it is correct & if so whether the TWO failiures were part of the trading?If so,how to protect.
Pl discuss.

While gold broke the low then retraced to 15 EMA and then broke the lows again .. clearly all those candles are sideways moves and not trending moves....

So gold SAR stays at 1752....

however since now the range has been broken and gold has made fresh lows..you can shift the SAR down to previous lower high.

Cheers
SH

 

[amol_gh123]

Hi SH,

So roughly I could draw below rules for exit:
1) SAR is hit : Exit and take reverse position
2) Price hitting Greater fools zone: book profit and wait to re-enter
3) (optional) On daily chart at the opening, difference between 3 EMA and open price is more than 40-50 points : book profit and wait to re-enter

Plz confirm as not sure about 3rd point...

..Amol

SH ur views plz

..Amol

 

[mangup]

3. please tell me the date when you see bull SAR getting hit.... please understand just going below 15 EMA doesnt mean bull SAR is hit ... bull SAR is the lowest point made after testing 15 EMA .....

Cheers
SH

Dear SH,

I think what i undestood from the rule if Bull SAR is nothing but the retest of prices when it touches 15 EMA & making it is higher high in bull trend. This makes our Bull SAR.

For eg.1 on 6th (12:30 pm candle) low touches 15 ema so low=5346.50 is our bull sar. Then 6th (3 pm) it breaches this prev bull sar. Should we have to reverse here.?

one more eg.2 on 7th (2pm) low hitted 15 ema so low=5373 is our bull sar. next subsequent 3 candles closes below our bull sar. Should we assume our bull sar is hitted here.?

One more eg.3. on 10th (12 pm) low hitted 15 ema. next candle closed below low should we assume this hitted our bull sar.

Kindly clarify my understanding.

 

[jobber1]

Hi TradewithHunter,

Going by your Stop logic I want to buy silver at CMP with Stop at 33.14.
Kindly advise.
Many Thanks

 

[amol_gh123]

Dear SH,

I think what i undestood from the rule if Bull SAR is nothing but the retest of prices when it touches 15 EMA & making it is higher high in bull trend. This makes our Bull SAR.

For eg.1 on 6th (12:30 pm candle) low touches 15 ema so low=5346.50 is our bull sar. Then 6th (3 pm) it breaches this prev bull sar. Should we have to reverse here.?

one more eg.2 on 7th (2pm) low hitted 15 ema so low=5373 is our bull sar. next subsequent 3 candles closes below our bull sar. Should we assume our bull sar is hitted here.?

One more eg.3. on 10th (12 pm) low hitted 15 ema. next candle closed below low should we assume this hitted our bull sar.

Kindly clarify my understanding.

Hi Mangup,

Just hitting 15 EMA does not mean it is a SAR... SAR is lowest point with 15EMA touch between two higher highs... refer attached image...unless previous higher high is not broken by another higher high, u can not call candle touching 15 EMA as SAR.. i hope this clears ur concept of SAR...

..Amol