SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

Yes - a lot of technical reasons related to global markets - For eg a 5% to 10% correction is due on S&P right now before we get the final thrust to 1250-1350 on it.

Thats why my position size will be bigger on bearish signals than on bullish signals right now.

Secondly - the bearish crossover has already whipsawed and if this bullish signal also whipsaws..it will be two in a row. Usually Nifty and other volatile stocks give a good trending move after a couple of whipsaws.

Cheers
SH

Since my above post, most of the european markets have corrected by 10% from the recent peaks. US markets have lost around 3%-5%. So has Indian markets.

Metals have literally crashed by 20%

bears having a party!

Cheers
SH

 

[Tradewithhunter]

Not sure if people booked shorts at gap down open yesterday around 5060 since 3 EMA was not touching the candle?

I have re-entered at 5115 levels again yesterday.

Cheers
SH

 

[Tradewithhunter]

Not necessary.
SH can confirm if not done already.

vin

Yes - 15 EMA touch is not necessary for entries.

Entries are made purely based on 3 EMA and 15 EMA crossover.

Cheers
SH

 

[arti]

But y'day candle did not touch 3EMa den why u entered shorts again,i mean it was not strategy based entry isnt it?

 

[Tradewithhunter]

But y'day candle did not touch 3EMa den why u entered shorts again,i mean it was not strategy based entry isnt it?

When markets gapped down and when i booked my shorts at 5060 .. the 3 EMA was around 5115 levels.

So I had placed my sell order at 5115 .. as markets moved up, 3 EMA went up as well ..so when my sell order got filled, 3 EMA was still not touching. I was getting 50 points already so went ahead with the shorts.

I have explained this on one of the previous thread... re-entry order should be where the 3 EMA is when you are booking profits.

Cheers
SH

 

[arti]

SH,

Am getting confused with exit strategy.Like was tracking LT today: -

As per the strategy we exited y'day.Then today candle touched 3EMA(3EMA was at 1530) when price was around 1510.We again entered(also y'day low breached).But now when it is trading at 1514,candle is not touching 3EMA.3EMA is at 1537 now.
Once we enter after 3EMa touch should we ignore this scenerio?

Also,once exited say y'day at 1537approx and reentered today at around 1511 where should i keep sl?My initial entry level or the todays entry level or no sl till position moves in profit, or wait for next crossover?

 

[Tradewithhunter]

SH,

Am getting confused with exit strategy.Like was tracking LT today: -

As per the strategy we exited y'day.Then today candle touched 3EMA(3EMA was at 1530) when price was around 1510.We again entered(also y'day low breached).But now when it is trading at 1514,candle is not touching 3EMA.3EMA is at 1537 now.
Once we enter after 3EMa touch should we ignore this scenerio?

Also,once exited say y'day at 1537approx and reentered today at around 1511 where should i keep sl?My initial entry level or the todays entry level or no sl till position moves in profit, or wait for next crossover?

Once you have entered after 3 EMA touch, forget about where 3 EMA eventually ends.. just hold the position.

SL - as a conservative trader you can keep the SL as your initial entry point and not todays entry point provided your position has moved in 'good profits'. Define what is good profits as per your own risk appetite.

As an aggressive trader, no SL should be places, just wait for opposite crossover (thats what I do personally).

Cheers
SH

 

[nick721156]

Not sure if people booked shorts at gap down open yesterday around 5060 since 3 EMA was not touching the candle?

I have re-entered at 5115 levels again yesterday.

Cheers
SH

Dear SH,

Today I observed one thing. Around 3PM. Mininifty Future Candle touched 3EMA. So, according to the strategy, it is to be shorted immediately and done so. But after 2 / 3 minutes, candle moved a bit lower and got ditached from 3EMA and remained so till 3.30PM. In such a scenerio what to do ?

According to your reply to Arti, same strategy to be adopted. Hopefully I am getting it correctly!


Regards,

Raju

 

[iTrade]

Yes - 15 EMA touch is not necessary for entries.

Entries are made purely based on 3 EMA and 15 EMA crossover.

Cheers
SH

Thank you for the reply SH. Anybody would agree that the strategy is simple and worth using, and a ton thanks to you for sharing it. But what influences me is your patience to reply to people for the same questions that have been asked before. Really well done... God bless you.

 

[msri]

Dear SH,
Kindly highlight the 3EMA touching the candles at various places as I am confused with it. i.e. the significance of touching (a) body, (b) away from the body, (c) lower tail, (d) upper tail, (e) penetrated in the body. Which part of the body is more significant technically?
Regards
msri