Thank's Raj, I forget to ask what time interval we should use for this 5 minutes or 3minutes or other? Please specify.
EMA(3), EMA(13), SMA(26) and time interval 3 minutes
I am posting Graph of LT Taken by ODIN to know, I got this strategy right or not given by Raj. Raj correct me if wrong.
1. First EMA(3) and EMA(13) meet and EMA(3) rises above EMA(13); we buy (buy 1663.50) SMA(26)as stoploss is much lower.
2 Second Ema(3) and Ema(13) meets again and Ema(3) going down; we sell here( sold 1669), Stop loss now where near. After sometime SMA(26)and Ema(3) meets: means stock going and stop loss triggered.
Can we short here(sold 1670))?
3 Third, Ema(3) and Ema(13) converger but SMA(26) stoploss is higher; we should wait and after sometimes when Ema(3) moving above SMA(26) and Ema(13) then we take position(buy 1668.50).
Can cover our short here(buy 1666)?
4 Fourth, Ema(3) and Ema(13) meets,SMA(26) still lower both) so we don't know will it going up or down, so wait. Once Ema(3) moving above. keep position. (Before Ema(3) moving up should we exit since Ema(3) goes down a little or wait?)
5 Fifth, We should sell since Ema(3) moving down Ema(13) and SMA(26) stoploss also met with rise in volume. (sold 1674.50)
6 Sixth, Ema(3) moving above Ema(13) but SMA(26) is above both so I will till they don't met. no position.
7 Seventh, All meets and Ema(3) starts rising up; take position (buy 1670)
8 Eigth, WE saw sharp fall with volume and Ema(13) rises above so we sold (sold 1674)
So total calls 3buy and 3 sell ; total Profit 16 points. (with short Total profit 20 points.)
Did i understand this graph pattern right way or ?
