My System - My trades.

[varunkochhar]

Money B ji i am so proud of you.

 

[monkeybusiness]

Money B ji i am so proud of you.

Sir,
Thanks to you
Bin Guru gyan na hoye.

 

[varunkochhar]

I wish i had found you 20 years ago and you would have been my mentor.

 

[monkeybusiness]

I wish i had found you 20 years ago and you would have been my mentor.

No SIr,
Still, miles to go before I start trading like you.

 

[varunkochhar]

Some time ago i had dwelled on the fact that the market expands then contracts and so on always. So what happens when the market expands. The EMA's go far apart. Meaning the 36EMA really takes of quickly and then waits for 200EMA to catch up before deciding its next moves. It happens all the time in all TF's. The higher the TF the bigger the trend. For example the last time the 2 EMA's came very close in BN was in Dec in daily. (They touched each other in 2014 i think). In weekly it is even longer. So what do we do. Simple we wait for both to come as close as possible and then set the boundaries for taking trades in whichever side it decides to break out after this Bharat Milap. It is as simple as that. No rocket science no fancy indicators. For people who do not have Ami to make a cloud (Which is nothing but the highlighted area between 36EMA and 200EMA), they can use an MACD with 36,200,9 parameter to achieve the same results.

 

[checkmate7]

Nice to see Guru shishay prem ...

Varunji do keep posting your valuable experience whenever you get time from your new venture

 

[lohit boman]

VKji didnt get 200 & 36 EMA concept
What I have understood is
buy above 200EMA
add more when it goes above 36EMA
Please clarify about the stoploss and more add ons

 

[varunkochhar]

Mind you i am not asking you to take trades off the MACD signal. We are using it just to mark the boundaries for taking the trades.

 

[varunkochhar]

I had explained earlier also what the MACD does. It just measures the distance between 2 averages (The fast (36 in this case) and the slow (200EMA in this)) and smoothens it with a 9 period ema.

 

[varunkochhar]

So when the MACD line is above zero the faster EMA is above the slower ema (Bullish trend) and vice versa for bearish trend.