SH's 315 Strategy - how to use if effectively

[bipangs]

Hi SH,
I have been going through this thread for the past one week.First of all I would like to convey a milion thanks for posting such a great strategy here..I have been doing some learning on technical analysis, after all the so called tips services failed.Learnt that we cant earn from others tips!!
Now I have a practical doubt.Please refer the following NF chart during Feb 2010.

Buy signal generated on Feb 26th when EMAs crossed over and confirmed at 3.25 pm.On close NF was at 4935.95 and 3 EMA was 4900.6

Now on 27 th NF opened at 4979.9 with a gap up. Now at this point if I calculate the 3 EMA , i assume that the open price is the EOD price and it works out to be 4940.25. Now as the opening price is more than this 3 EMA I should exit long as per strategy,is that right SH? Now where should I re enter?

I think I have seen posts where in u have told re entry at the 3 EMA point when the profit was booked.That would mean that I wait for the price to come down to 4940 so as to re enter.Am I right?
But unfortunately the price never came down to 4940 in the upmove that resulted.
when should have been the rentry? or was it not there in this case?Please guide me.Thanks in advance.

 

[vinst]

Hi SH,
I have been going through this thread for the past one week.First of all I would like to convey a milion thanks for posting such a great strategy here..I have been doing some learning on technical analysis, after all the so called tips services failed.Learnt that we cant earn from others tips!!
Now I have a practical doubt.Please refer the following NF chart during Feb 2010.



Buy signal generated on Feb 26th when EMAs crossed over and confirmed at 3.25 pm.On close NF was at 4935.95 and 3 EMA was 4900.6

Now on 27 th NF opened at 4979.9 with a gap up. Now at this point if I calculate the 3 EMA , i assume that the open price is the EOD price and it works out to be 4940.25. Now as the opening price is more than this 3 EMA I should exit long as per strategy,is that right SH? Now where should I re enter?

I think I have seen posts where in u have told re entry at the 3 EMA point when the profit was booked.That would mean that I wait for the price to come down to 4940 so as to re enter.Am I right?
But unfortunately the price never came down to 4940 in the upmove that resulted.
when should have been the rentry? or was it not there in this case?Please guide me.Thanks in advance.

hello Bipangs,
I do not know the exact data for this. According to my understanding in this situation, price did not come down but ema3 would have risen to meet the price bar. As soon the ema3 touches the price bar after your profit booking, we are supposed to re-enter our position.

regards
vin

 

[vikas2659]

Please refer to post no 1183 & 1185 . SH sir has clarified this query.. Also wat i have experienced is that one shud take exit signal at 3 EMA only when one is in reasonable profits ( for me its 80-100 pts). Otherwise one cud miss the next move..
Enjoy

 

[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

Like i said above, most global markets have corrected more than 10% from their peaks including Indian markets.

My 'bigger positions' in shorts have been running in good profits and gave good intra swing exits and entries.

Today at 4990, 3 EMA again not touching the candle so i have booked my shorts again. Will re-enter at 3 EMA touch again.

Enjoy!:thumb:

Cheers
SH

 

[Tradewithhunter]

Dear SH ji,
Yesterday (May13) candle is not touching 3 ema but touching 15 ema.......... should have we exited here?

Kindly clearify.

Why would you exit on May 13 candle when you are in shorts??? On a bearish signal, such bounce back candles should be used for shorting instead . This is because markets should fall from this point to touch 3 EMA.

For shorts, the exit candle was on 7th May 2010 since on this day markets crashed and 3 EMA was above the candle.

Cheers
SH

 

[pundit]

Why would you exit on May 13 candle when you are in shorts??? On a bearish signal, such bounce back candles should be used for shorting instead . This is because markets should fall from this point to touch 3 EMA.

For shorts, the exit candle was on 7th May 2010 since on this day markets crashed and 3 EMA was above the candle.

Cheers
SH

Dear SH ji,
Thanks a million to clearify my doubt.....gr8 I got it now..

So till today our bearish signal has given good profit...

 

[Tradewithhunter]

Like i said above, most global markets have corrected more than 10% from their peaks including Indian markets.

My 'bigger positions' in shorts have been running in good profits and gave good intra swing exits and entries.

Today at 4990, 3 EMA again not touching the candle so i have booked my shorts again. Will re-enter at 3 EMA touch again.

Enjoy!:thumb:

Cheers
SH

..and re-entered before days close at 5065. Now holding normal position size.

nice 200 point profit made till now!

Cheers
SH

 

[bhavesh_gelani]

Dear SH
I covered my short @4987 and shorted again @5050

Ur logic abt to touch 3 EMA will work perfect.

Bhavesh Gelani

 

[pundit]

..and re-entered before days close at 5065. Now holding normal position size.

nice 200 point profit made till now!

Cheers
SH

Dear SH ji,
today candle is not touching 3ema so I did not get logic behind re-entering at 5065.

 

[palprabob116]

very gud theory ji ... i will test it practically ...