SH's 315 Strategy - how to use if effectively

[uday_in]

Please check the attachment.

 

[columbus]

I think EMA3 can be dispensed with because the CLOSES
themselves serve as boundaries.Personal opinion.

 

[Tradewithhunter]

Ok ..
whats ur advice on Monday on DENA BANK, SUZLON...
3 EMA goes above 15 EMA
Last(27-11-09) candle close above 15 EMA in both cases..
what next if 3EMA goes above 15 EMA on Monday.. I should buy .. right????

Yes if 3 EMA is above 15 EMA at 3.25 PM on Monday, buy both.

Cheers
SH

 

[Tradewithhunter]

Hi Tradehunter,

Your 3-15 EMA system seems to be nice for swing trading. Now I want to confirm that Nifty going in selling mode or shorting mode as it has a 3 EMA crossover 15 EMA on 27/11/09. Please look at the following image and tell me.

Yes Uday NF gave a sell signal on Friday. If you read my Friday's post I have clearly mentioned that.

Cheers
SH

 

[uday_in]

To StockHunter,

I have a query. If 3 EMA is showing crossover just above/below 15 EMA then it clearly tells whether to buy/short that stock. But what if 3 EMA is already trading well above/below 15 EMA and I want to take position in this stock? Do I need to check Bollinger Bands/MACD/RSI indicators for the same? B'cos sometimes EMA shows false crossover and MACD behaves opposite of EMA, so in that case how to trade in that stock?

Thanks.

 

[gb333]

whay at 3.25 pm.. why not at 10.30pm?

 

[spiritunit]

whay at 3.25 pm.. why not at 10.30pm?

I am not going to buy at 10.30 pm, because I am at sleep at that time..

why at 3.25 p.m? In intraday the EMA 3 will move up and down as per the market moves, so you can't really decide whether to go long or short at early stage, at 3.25 p.m. almost the market closing time you can get some clear picture where the EMA 3 line is, whether it cross over the EMA 15 or touches candle body or not and take the position according to that.

 

[spiritunit]

To StockHunter,

I have a query. If 3 EMA is showing crossover just above/below 15 EMA then it clearly tells whether to buy/short that stock. But what if 3 EMA is already trading well above/below 15 EMA and I want to take position in this stock? Do I need to check Bollinger Bands/MACD/RSI indicators for the same? B'cos sometimes EMA shows false crossover and MACD behaves opposite of EMA, so in that case how to trade in that stock?

Thanks.

Uday,

In this strategy you do not want to confuse with other indicators and you have to wait for the 315 cross over to take initial position and you can ADD according to the rules as SH mentioned in first post.

 

[eevra]

Hi, does it mean that our actions are only around 320pm+ ! Or do you also suggest we can enter / exit as the ema3 moves above / below ema15 during the intraday ?
-arvee

Answer is simple mmca, it cannot be 'book profit' candle since we did not have shorts .. if we didnt have shorts ..how can we book profits?

It is a plain 'open shorts' candle. However since 3 EMA is not touched by the candle there is a possibility Monday we get a +ve opening which makes the Monday candle touch 3 EMA and then its 'business as usual'. This is why i opened only 50% shorts on Friday, rest 50% to be added when 3 EMA is touched. From that point if Nifty falls ..very well for my shorts. But if Nifty keeps going up we will end up with a bullish crossover and I will exit shorts and enter longs again. Depends how 315 looks at 3.25 PM on Monday. It can be another whipsaw for what it takes... but i dont mind whipsaws....for 315 gives me enough profit in the long run to bear whipsaws with grace.

Like for every bad thing there is a good thing in this world.. similarly for every whipsaw there is a profitable trend waiting to be encashed in future...

Cheers
SH

 

[mmca2006]

Hi, does it mean that our actions are only around 320pm+ ! Or do you also suggest we can enter / exit as the ema3 moves above / below ema15 during the intraday ?
-arvee

He suggested this system mainly for EOD , and for EOD, we shall enter around 3.25 pm.