How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

[coolcorner78]

Guys! following link can be used to gauge bias of the stocks for the next day(s)....

http://www.bigpaisa.com/nse/futures-trades/open-interest/expiry/near-month

(a) Plan trade for the stocks which fit best, as during the week we have lots of choices easily available.

(b) Have 1 or 2-stocks to SHORT, 1 or 2-to go LONG simultaneously.

(c) For Long or Short consider only those stocks which have OI change at least 5%. Higher the better.

(d) BULLISH: If price increases AND OI increases.
.....BEARISH: If price decreases AND OI increases.

(e) Not easy to interpret near expiry due to roll-overs, after expiry again on track.

=> Define your stop Loss and Target as per the chart.

Paper trading for few weeks is definitely required.

Kamlesh ji, May be I can add few more things for readers to be careful with when following OI. Its better to follow this with your Technical analysis. Check your support resistances on the chart and the OI movement. Sometimes, OI will increase with little price increase for various reasons (Results awaited, some news awaited (which we small people won't know until its known to everybody), FII positions - short cash, long futures or vice-versa or clubbed with options strategies, dividend announced, FII's hedge their cash positions with futures, so you may see OI increase, decrease). A word of caution is to keep away from < 100 rupees stocks, if possible < 200 also, avoid them, still you want to trade them, trade them in cash (well one can only in the long side then, but still its ok and trade low quantity), but futures not a good idea, unless you know what you are doing.

Also, couple more cases in OI.

OI decreases, prices increases - short covering
OI decreases, price decreases - profit booking

Cheers!

 

[uttamkamlesh]

Kamlesh ji, May be I can add few more things for readers to be careful with when following OI. Its better to follow this with your Technical analysis. Check your support resistances on the chart and the OI movement. Sometimes, OI will increase with little price increase for various reasons (Results awaited, some news awaited (which we small people won't know until its known to everybody), FII positions - short cash, long futures or vice-versa or clubbed with options strategies, dividend announced, FII's hedge their cash positions with futures, so you may see OI increase, decrease). A word of caution is to keep away from < 100 rupees stocks, if possible < 200 also, avoid them, still you want to trade them, trade them in cash (well one can only in the long side then, but still its ok and trade low quantity), but futures not a good idea, unless you know what you are doing.

Also, couple more cases in OI.

OI decreases, prices increases - short covering
OI decreases, price decreases - profit booking

Cheers!

Very useful comments buddy!...

1.."A word of caution is to keep away from < 100 rupees stocks, if possible < 200 also, avoid them, still you want to trade them, trade them in cash",....why so...?...

 

[uttamkamlesh]

I'm using Amibroker or Spider depending upon data & forumla requirement.

Best is you need to decide your timeframe (EOD you will get data from many sources... IEOD you may need to purchase or can get from somebody on TJ)

Secondly you need to code your scanning formula into AFL. That's it.

If required I can help in coding.

Regards,

1. MY TF is Weekly and Daily...

2. Yes, AFL you would code for all of us.

3. Let's start with
(a) Turtle Trading system 20D, 55D breakouts.
(b) NR4ID, NR7ID, WR7OD.
(c) Gann Hi-Lo Activator.

Let me install Amibroker in my m/c.

 

[coolcorner78]

Very useful comments buddy!...

1.."A word of caution is to keep away from < 100 rupees stocks, if possible < 200 also, avoid them, still you want to trade them, trade them in cash",....why so...?...

I think the stocks <100 and some <200 have lot of participation by operators and traded heavily by them and the movements in them are beyond technical analysis and OI (If you see the chart everything seems fine on the hindsight, but intraday volatility is tough to understand) for eg: stocks like suzlon, unitech, jpassociates, its difficult to understand what it is trying to do, may be if you spend time following the same, you can guess what its trying to do. Also, the lot sizes are huge, Re. 1 up or down, you are down/up by that much per lot immediately, might loose few heart beats coz of that , so was saying newbies to stay away. That's why better to stick to cash if at all its really needed, in that case we can only go long

Actually higher the price its easier to trade in futures (I feel), like 500-600 upto 2000, which has good volumes. (You can trade asian paints or TTK also at times, though spreads will be huge).

 

[coolcorner78]

Kamleshji, sent you a PM. Check it out.

 

[piyush08]

a close above 1767 means old high 1923$ in picture and off course new all time high too:thumb:

Gold ka pata nahi bhai.. kabhi bhi kuch bhi hota hai.. bt we are in an uptrend.. short term.. as well as secular long term.. so expect it to make new highs later in the year. bt should see some back and forth in the months ahead before that.

With regards to equities.. i definitely think one should be adding to them rather than reducing..in a way we've had flat to sideways market for 5 yrs now with ups and downs.. this current move might be starting a meaningful bull run with index seeing fresh new highs not only this year.. but next 2-3 yrs as well. it won't be as strong as 03-08, but there will still be good upside. take the cnx-100 index, buy the 10-20 stocks which have rallied the most of the bottom and hold them.. there is atleast a 6 month bull mkt to ride..

 

[adityasaraf007]

There's one bearish WW on gold 1 hr also...starting with 15feb 9am high on gci.... expecting it to start.....from HOD....

does that tally with you guys ? tgt 1721 odd area as per time symmetry...

I don't find any Bearish WW which is easily apparent at a glance..... I don't trade the ones for which we have to strain our eyes to find it....

 

[uttamkamlesh]

I don't find any Bearish WW which is easily apparent at a glance..... I don't trade the ones for which we have to strain our eyes to find it....

Yes! that should be the spirit of a trader....royalty..

 

[uttamkamlesh]

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[joysuryas]

Hi All,

Can anybody tell me how to insert EMA in GCI MT4??

Thanks

Joy