Hi all,
I am newbie to stocks fno trading and don't have any experience in it.
Starting this thread to track a specific list of stocks in NSE based on the stochastics analysis.
Please note that i am not trading in stocks fno based on this method and this is just a paper trading experiment to see if this setup works.
If it does work, it will help me in entering into actual stocks fno trading with confidence. :thumb: Else it ll just become yet another attempt... :annoyed:
Idea:
-----
1. Positional trading
2. Need to check status of holding in EOD during last 5-10mins of trading only.
3. Holding time can be very short term like covering the position can happen next day also.
4. Profit target: little profit will do to begin with. Actually, Lesser loss trade is the aim here and not looking for big money.
Technical Detail:
----------------
Like my other thread on NF trading , there are 2 stochastics windows. Always both this windows are consulted for entering trade:
1. Stochastics (15,3)
a. if %k > %d - Up trend
b. if %k < %d - Down trend
c. The steepness is very important. After good continuous steep move by %k when you get and less-steep or horizontal kindof move, EXIT.
2. full-stochastics: (21,4,1) / (18,4,1) / (15,4,1) / (12,4,1) / (9,4,1)
a. Purpose of this window is to find uncertain or ranging or no-trend situations.
b. If all these stochs are very close to each other, the trend will be stronger and we can place our trade in that direction after confirming with the trend.
c. If these stochs are spread out from each other, it means there is no trend or ranging market in that stock. Don't trade in this situation.
Don't try to enter short immediately once stochastics reach OB region(>80)
Don't try to enter long immediately once stochastics reach OS region(<20)
Because often stocks tends to move stronger in the direction of the zone.
Important Rule: When in doubt, EXIT. Protecting the capital is important THAN missing the profitable points...
Comments/improvement/suggestions are welcome.
Will post images in next post...
I am newbie to stocks fno trading and don't have any experience in it.
Starting this thread to track a specific list of stocks in NSE based on the stochastics analysis.
Please note that i am not trading in stocks fno based on this method and this is just a paper trading experiment to see if this setup works.
If it does work, it will help me in entering into actual stocks fno trading with confidence. :thumb: Else it ll just become yet another attempt... :annoyed:
Idea:
-----
1. Positional trading
2. Need to check status of holding in EOD during last 5-10mins of trading only.
3. Holding time can be very short term like covering the position can happen next day also.
4. Profit target: little profit will do to begin with. Actually, Lesser loss trade is the aim here and not looking for big money.
Technical Detail:
----------------
Like my other thread on NF trading , there are 2 stochastics windows. Always both this windows are consulted for entering trade:
1. Stochastics (15,3)
a. if %k > %d - Up trend
b. if %k < %d - Down trend
c. The steepness is very important. After good continuous steep move by %k when you get and less-steep or horizontal kindof move, EXIT.
2. full-stochastics: (21,4,1) / (18,4,1) / (15,4,1) / (12,4,1) / (9,4,1)
a. Purpose of this window is to find uncertain or ranging or no-trend situations.
b. If all these stochs are very close to each other, the trend will be stronger and we can place our trade in that direction after confirming with the trend.
c. If these stochs are spread out from each other, it means there is no trend or ranging market in that stock. Don't trade in this situation.
Don't try to enter short immediately once stochastics reach OB region(>80)
Don't try to enter long immediately once stochastics reach OS region(<20)
Because often stocks tends to move stronger in the direction of the zone.
Important Rule: When in doubt, EXIT. Protecting the capital is important THAN missing the profitable points...
Comments/improvement/suggestions are welcome.
Will post images in next post...
Last edited: