Trading Diary - Using MACD, ADX for September Series

[akhill]

Bought 5000 PE 30 lots @ 13.40, still holding.

CMP 12.40

 

[akhill]

holding 5000 PE, CMP 12.60

 

[akhill]

Sell 5000 PE @ 14.20

 

[akhill]

I am about to take almost a gamble now...

10 lots of BankNifty 11000 CE @ 11.5

Reason:

I expect RBI to give rate cut in one or other form tomorrow. Moreover, there is a lot of time for this series expiry, so pretty much i will be in a safe position or i will exit the position at stop loss of 10 .

It is being said that the interest rates for home loans will be reduced tomorrow, which may give atleast a little bit of upward momentum to the market.

Moreover, Nifty is not going below 5290, which implies that the support at 5280 is a bit stronger than the current downward momentum. Lets see how it works tomorrow.

 

[johnnypareek]

Hi,

Can u plez tell whats the parameter ofg ur macd n adx and which timeframe u look ?

johnny

 

[akhill]

Hi,

Can u plez tell whats the parameter ofg ur macd n adx and which timeframe u look ?

johnny

well.. the above trade i mentioned is a pure gamble, it doesnt have anything to do with MACD or ADX

my daily trades or positional options are based on those indicators though. I will try to post the screen shots of the indicators when i enter into the trades.

I use 3 minutes and 15 minutes timeframes but always keeping an eye on 1 minute candles also.

The system is simple. When the MACD and the signal line both are above the zero line, we look for long opportunities. We enter for long when the MACD line cuts the signal line from below(but both should be above zero). Reverse the case below zero, we go short.

We dont go short any time when macd is trading above the zero line (exceptions can be made sometimes)

How i incorporate ADX into the trades for accuracy - i will explain during the trading time with chart.

 

[Ajit57]

The system is simple. When the MACD and the signal line both are above the zero line, we look for long opportunities. We enter for long when the MACD line cuts the signal line from below(but both should be above zero). Reverse the case below zero, we go short.

We dont go short any time when macd is trading above the zero line (exceptions can be made sometimes)

But don't you think that cross over of MACD line with signal line (positive or negative) is too lagging ... I mean when tested in real time, half the trade i already over ... I am new to MACD, so I may be wrong ... Please correct me ... After I read this post, I tested on real time chart and the signals are too lagging, means after it reaches around half or more, we get the confirmation and by the time the trend has already changed ...

Tx

 

[prabhsingh]

I am about to take almost a gamble now...

10 lots of BankNifty 11000 CE @ 11.5

Reason:

I expect RBI to give rate cut in one or other form tomorrow. Moreover, there is a lot of time for this series expiry, so pretty much i will be in a safe position or i will exit the position at stop loss of 10 .

It is being said that the interest rates for home loans will be reduced tomorrow, which may give atleast a little bit of upward momentum to the market.

Moreover, Nifty is not going below 5290, which implies that the support at 5280 is a bit stronger than the current downward momentum. Lets see how it works tomorrow.

Is there any news that rate cut can happen tomorrow?I am aware first quarter GDP numbers will be announced on Friday and if GDP data gets worsen then rate cut can happen but nothing heard for tomorrow mate.

 

[akhill]

But don't you think that cross over of MACD line with signal line (positive or negative) is too lagging ... I mean when tested in real time, half the trade i already over ... I am new to MACD, so I may be wrong ... Please correct me ... After I read this post, I tested on real time chart and the signals are too lagging, means after it reaches around half or more, we get the confirmation and by the time the trend has already changed ...

Tx

you are absolutely right. thats where you take ADX into consideration. My internet has been scrwed from evening, so could not post earlier. right now i am using from my mobile. will detail you tomorrow when i get my connection back.

moreover, i am also new to this trading. only 3 months old. . i am just testing various scenarios and trying to figure out profitable ones. so far, so good. even if you get half of the trend after confirmation, that is better than a losing trade. consistency is what matters to me at this point. so looking forward to testing. down the line, i may improve my strategy to accomodate for speed and accurate entries, once i am able to figure out trend changes.

 

[akhill]

Is there any news that rate cut can happen tomorrow?I am aware first quarter GDP numbers will be announced on Friday and if GDP data gets worsen then rate cut can happen but nothing heard for tomorrow mate.

news about monetary policy is also on friday, 31st. i misquoted it as tomorrow. sorry about that. I am not really expecting rate cut, but Mr. D. Subbarao is always known for surprises. thats y i said its a gamble. but there is more news that interest rates on home loans may be going down, which gives a boost to reality sector and the market is so savvy for some form of easing that it is going to grab any good news with both the hands and spring up.