SH's 315 Strategy - how to use if effectively

[kkr555]

Mr TradeWithHunter,

You have stated that one must wait for the candle to close above 15 EMA. By this, do you mean that the ENTIRE candle should be above 15 EMA or does a candle that is partially above 15 EMA also qualify.

Today's (Oct 6, 2009) chart of HCL Tech has a bearish cross over of the 3 day EMA below the 15 day EMA. However the candle's head is above the 15 day EMA, while the candle's bottom is below the 15 day EMA. Should one be SHORTING HCL under such a scenario ?

Could you please confirm what the exact rules are.

Entries

Entries are simple, you wait for a candle to close above 15 EMA, next candle to open and see if 3 EMA is above 15 EMA or not. If the answer is 'Yes' you go long. For shorts you need an exact opposite setup.

SH:thumb:

 

[shavya]

thanx sir for the strategy

i wil try it as i have alredy tried alot and sufferred huge lossess i wish this works out for all young and new traers like me.

thanx

 

[Tradewithhunter]

Mr TradeWithHunter,

You have stated that one must wait for the candle to close above 15 EMA. By this, do you mean that the ENTIRE candle should be above 15 EMA or does a candle that is partially above 15 EMA also qualify.

Today's (Oct 6, 2009) chart of HCL Tech has a bearish cross over of the 3 day EMA below the 15 day EMA. However the candle's head is above the 15 day EMA, while the candle's bottom is below the 15 day EMA. Should one be SHORTING HCL under such a scenario ?

Could you please confirm what the exact rules are.

KKR - this was a valid bearish crossover and shorts should have been opened near to the close price as per the charts.

What I meant by candle close was that we should not jump into trade at 12 noon just becuase at that point a crossover is visible.. this is becuase by the day end the price can reverse and there might not be any crossover visisble then by day end. At close to day end, lets say at 3.25 PM just before the market close, if you see 3 EMA crossing 15 EMA the trades should be opened immediately.

Hope this clarifies... HCL is down more than 20 points or almost 10% since the sell signal generated on 6th October as per the charts you have posted...

Cheers
Stockhunter (SH)

 

[kkr555]

Thank you sir for your kind answer.

Another observation that I noted yesterday was that even the Nifty is about to have a bearish crossover soon. If Nifty has a flat close of 4945 (or lower) on Monday, then the bearish crossover will be confirmed.

KKR - this was a valid bearish crossover and shorts should have been opened near to the close price as per the charts.

What I meant by candle close was that we should not jump into trade at 12 noon just becuase at that point a crossover is visible.. this is becuase by the day end the price can reverse and there might not be any crossover visisble then by day end. At close to day end, lets say at 3.25 PM just before the market close, if you see 3 EMA crossing 15 EMA the trades should be opened immediately.

Hope this clarifies... HCL is down more than 20 points or almost 10% since the sell signal generated on 6th October as per the charts you have posted...

Cheers
Stockhunter (SH)

 

[Tradewithhunter]

KKR - as you would have seen how NF has bounced from 15 EMA support and ended higher.... It explains why we need to wait for candle close before we jump into any positions.

Cheers
SH

 

[kkr555]

Dear Sir,

I did not go SHORT with NIFTY as I already hold a SHORT position in HCL.

As a hedge for my SHORT in HCL, I hold 1 LOT LONG in NF.
Luckily for me, according to 3/15, a bullish Nifty and a bearish IT should prove beneficial for me.

KKR - as you would have seen how NF has bounced from 15 EMA support and ended higher.... It explains why we need to wait for candle close before we jump into any positions.

Cheers
SH

 

[Tradewithhunter]

For some of the 'sauve' traders who have enough money and risk appetite to increase their probabilities of earning money, a 315 crossover can also be used to sell options as per the signal i.e:

On bullish crossover sell OTM puts and hold until bearish crossover happens.
On bearish crossover sell OTM calls and hold until bullish crossover happens.

Remember to book profit whenever the option value falls by 50%-70% from your sell price.

If the chances of making money is 70% based on 315 crossover, they go upto 90% as an option writer (seller).

Try it on stocks which have highly liquid options (RIL, DLF, Unitech, SUZLON, Nifty etc)

Cheers
SH

 

[spiritunit]

Tradewithunter, can you recommend any good software for intraday chart with 315 strategy available?

 

[Tradewithhunter]

Tradewithunter, can you recommend any good software for intraday chart with 315 strategy available?

Dear spiritunit - The strategy is so simpel that you do not need any special software for the same, any charting tool would be good enough.

For intraday you will need realtime data. Real time charts are available as paid of different online charts (icharts etc).

Real time charts are available on www.google.com/finance (only 2mins, 5 mins & 30 mins timeframes are available for intraday) and you can easily plot 3 & 15 EMAs on them.

However please note (i say it time and again) I recommend 315 to be used for trading on EOD charts only.

Happy Trading
Stockhunter (SH)

 

[mayur553]

well yesterday's close showed a bearish crossover... but then today its up almost 1%... how do deal with this??