SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
Thanks SH & RKK for your replies.
@ SH - One ques remains unanswered is - If we are in 315 bearish crossover mode & next day mkt opens with very less gap in 3 EMA & Open. As per rule we do not exit. Now suppose if mkt close with a big gap let's say 50-60 pts in 3 EMA & Open. Do we exit since the gap has increased? Here a suggestion is -If diff betn 3EMA & Close is more that 50-60, can we exit thereby protecting profits in hand?
@ SH - One ques remains unanswered is - If we are in 315 bearish crossover mode & next day mkt opens with very less gap in 3 EMA & Open. As per rule we do not exit. Now suppose if mkt close with a big gap let's say 50-60 pts in 3 EMA & Open. Do we exit since the gap has increased? Here a suggestion is -If diff betn 3EMA & Close is more that 50-60, can we exit thereby protecting profits in hand?
Mangup, When market opens with a small gap, it cannot increase and become a big gap by close. You probably mean to say that the market keeps on going down and the difference with 3EMA increases!!?? It is very unlikely that the difference between the price bar and 3EMA increases significantly... as NF goes down and closes lower 3EMA will also go down simultaneously so the difference may vary a little and not much.
In any case "if" you still think it happens, then as per 315 Trading rules we continue to hold our short and do not exit.
And also remember that when we are short its the 'High' of the price bar that matters and not the "close" as it is the "high" that will "meet" 3EMA!!!
Protecting profit can be an attribute which may differ from trader to trader!! I know a few who switch to Options where they fear that the trade may move against them or to protect the profits or to reduce the risk!!
In any case "if" you still think it happens, then as per 315 Trading rules we continue to hold our short and do not exit.
And also remember that when we are short its the 'High' of the price bar that matters and not the "close" as it is the "high" that will "meet" 3EMA!!!
Protecting profit can be an attribute which may differ from trader to trader!! I know a few who switch to Options where they fear that the trade may move against them or to protect the profits or to reduce the risk!!
Vinst, Please clarify : Is a candle is supposed to be in Greater Fools zone when it touches the bands or it needs to close outside and move inside. Todays candle has touched the lower band and has moved up, then for 315 strategy can we exit our short and go long above the high of todays candle till it touches 15EMA? At that level we can go for shorting again. OR maybe for less risk averse traders simply exit short above the high of todays candle!! What is your take on it?
Hi RKKarnani,
As per my calculation , low of yesterday's candle didn't touch lower band (the difference in our conclusion could be due to how we decide that the band contains ~95% of candles in past 1 year or about 250 days data). However, as and when the low touches the lower band, I should look at lower TF to get reversal indication and close shorts.
I said 'I should' look at...... because many times i am unable to see the data during trading times.
As per my calculation , low of yesterday's candle didn't touch lower band (the difference in our conclusion could be due to how we decide that the band contains ~95% of candles in past 1 year or about 250 days data). However, as and when the low touches the lower band, I should look at lower TF to get reversal indication and close shorts.
I said 'I should' look at...... because many times i am unable to see the data during trading times.
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