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

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horizontal white lines show the new high made so take previous low can be made our bull sar.

exactly even i kinda tried ...lets just wait for SH to define some rules

30 mins EMA 17 with 1.5 (but dont know it is taking only 1% when i enter it as 0.015 )

Band low & high is 5326 & 5488 i.e. difference of 140 points. So i dont see it as narrow range

thanks for the check.
being shown as 1% is due to display limitation, i guess.
otherwise envelope is correctly 1.5% of the mov avg.

mine was soso different ...il upload wait

p.s. : now i realize ....the website i use gives me 30mins data of just 10 previous days ...i think we gotta take more days

Dear all - adding the Exit, re-entries rules.

Pyramiding later.

Exit rules when trade running in profit

We have to follow the greater fool zone strategy here. Please see this post to understand it more.

http://www.traderji.com/technical-analysis/63589-shs-trading-greater-fool-zone-2.html#post612691

We book profits when greater fool's zone is hit or hedge by buying some options that can be exited when nifty corrects to touch 15 EMA. I personally do not exit when the GFZ is hit first time(this happens after first breakout), however start exiting from second time.

Profits should also be booked in case 3 EMA has not touched the daily candle in two consecutive days (3EMA reversal rule)

Re-entries

Once profits have been booked due to GFZ (greater fools zone) hit, re-entries should be done once 15 EMA has been retested. However to ensure that we do not get trapped into a correction that started from GFZ but is going to hit the SAR, we have to ensure that the markets show signs of taking support at 15 EMA and then only we re-enter.

So we need to look for strength being shown near 15 EMA to re-enter. I follow a simple rule here, once 15 EMA is touched by a 30 minute candle, I wait for the first green candle to close above 15 EMA after the candle that retested 15 EMA. the candle which retested 15 EMA is irrelevant, we need to wait for the next green candle and then we re-enter. The SAR stays as per the system and moves up only after a new high is taken out.

Please see below chart to understand re-entry.



Please review the method properly and the trade. Like any other method this one is no holy grail, it will have its whipsaws every now and then and the key will remain to be consistent, patient and disciplined.

Since 1st Jan we have been in an extremely rare uptrend so any trend following method (including this one) would look magical ... please dont get overexcited over this method ...trade safe with sound money management rules and dont overleverage ....

Happy trading and Cheers !

SH

Hello SH,

Thanks a lot.

here you are have taken SMA 20 & not SMA 17. BTW there is little difference.

So which one is to be taken?

Sh

thanks for this post, but few question, really helpful if you answer these query

1. i do not have envelope in my charting software, can i use channel for the same, if yes that what are the parameters.
2. Does this strategy not resembling saint 30 min flow.
2. Can we play this on intraday basis on 30 min chart for nifty & stocks as well.

thanks

anil