SH's 315 Strategy - how to use if effectively

[shivaraja]

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

You should use the 3EMA value at the time of exiting in the morning gap down for re-entries.

This was mentioned already by SH.

 

[prabit]

Dear shivaraja,
If still it is not clear pl say it.

 

[bipangs]

Nifty sell holds valid, 15 EMA kiss on Monday was a good 'add' point.

Cheers
SH

Dear SH,
Shouldnt we have waited for a candle to move lower than this present candle, to validate the add position?or should we weigh the situation, any rules?
Thanks in advance

 

[pundit]

You should use the 3EMA value at the time of exiting in the morning gap down for re-entries.

This was mentioned already by SH.

Can you please elaborate it a bit, as per my understanding of SH 315 one should exit immidiatly when candle is not touching 3ema and re-enter candle touches 3 ema again..

kindly point me out if I m wrong.

 

[pundit]

Can you please elaborate it a bit, as per my understanding of SH 315 one should exit immidiatly when candle is not touching 3ema and re-enter candle touches 3 ema again..

kindly point me out if I m wrong.

Ok Shivraj ,
No need to explain .. I got it..

any way thanks.

 

[Tradewithhunter]

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

nice 200 point profit made till now!

Cheers
SH

Nifty at 4920 .. thats another 145 points profit :lol:

I have booked 50% profits and will carry rest 50% to tomorrow.

Cheers
SH

 

[gsri]

Dear Trade hunter

Today morning on gap down , I exited my NF short at 4998, since price was well below
3 ema . On hindsight it was premature.

All said thanks again for the lovely method.

Regards
gsri

 

[trading4p]

Hi Trade Hunter

I want to thank you for explaining this strategy. I have gone through the entire thread and hopefully understood all the rules. However there is something that still is not clear to me.

You say to exit when the current candle is away from the 3 EMA. When should we check to see this? I ask because for entry you have said to look just before the market close. Does the same rule apply for exit?

I am in US, so trading the US markets. Below i have attached a chart (stock shorted). As you can see currently (8.55 AM) the candle is away from 3 EMA. However it could happen that by the end of the day this recovers and the candle is touching the 3 EMA. So should i cover (as i have shorted) when i see thecandle away like this or should i wait till about closing time? Please clear this confusion. Thanks in advance (This is a paper trade.)

 

[vinst]

Hi Trade Hunter

I want to thank you for explaining this strategy. I have gone through the entire thread and hopefully understood all the rules. However there is something that still is not clear to me.

You say to exit when the current candle is away from the 3 EMA. When should we check to see this? I ask because for entry you have said to look just before the market close. Does the same rule apply for exit?

I am in US, so trading the US markets. Below i have attached a chart (stock shorted). As you can see currently (8.55 AM) the candle is away from 3 EMA. However it could happen that by the end of the day this recovers and the candle is touching the 3 EMA. So should i cover (as i have shorted) when i see thecandle away like this or should i wait till about closing time? Please clear this confusion. Thanks in advance (This is a paper trade.)

trading4p,
The last day shown in you chart is a profit booking oppotunity for short position. When this or any next candle touches 3ema, you are supposed to re-open short position.

vin

 

[trading4p]

trading4p,
The last day shown in you chart is a profit booking oppotunity for short position. When this or any next candle touches 3ema, you are supposed to re-open short position.

vin

Hi Vinst

Thanks for your reply. However my question still remains unanswered.

My question was when should profits be booked? This snapshot was taken at the beginning of the trading day.

Should we wait till end of the day (just before close) to close the position? However it's possible that by that time candle is touching 3 EMA (because price could have moved up and touched the candle). Or should we take profit as soon as we see this type of candle (i.e candle away from 3 EMA).?

TH is quite clear on the time of entry but not about the time of exit ( or maybe i missed that part).