SH's 315 Strategy - how to use if effectively

[slah04]

SH,

With reference to attached Nifty chart, we exited our shorts at 4731 on Feb 05 after a gap down opening from EMA3 (Black Line). On Feb 06, Nifty touched the EMA3 at its high @ 4767.. so we entered shorts again.

Next day, on Feb 08, Nifty opened at a gap down @ 4723 from EMA3 (4768). So as per my understanding we again exit the Shorts. During the day, Nifty touched EMA3 and thus we then entered shorts @ 4768.

The following day, on Feb 09, Nifty opened at 4754 ,just 10 pts gap down from previous day's close, but also gap down from EMA3 (4768). Question is do we exit on this small gap also? What should be the minimum gap down for which we should exit?

On Feb 09, the Nifty later went up and touched EMA3. Nifty closed higher than previous day's close and could not breach Feb-08 Low. As a new low was not made, I guess we should not enter shorts again even when the Nifty touched EMA3 on Feb 09. As per 315, is that right?

Thks

Slah

 

[arti]

SH,
Want u to clear few doubts.Lets take unitech (EOD chart)-
3 is still below 15ema,price has touched 15ema on Thursday.So can we short it,or i should wait to see if price crosses y'day high.If say price crosses y'day high,then should i wait for further price action? wont open any short position and will wait for further price action?

Let say it does not cross y'day high (i.e approx 75)till 3:15pm, then can i open fresh short position? If i wait till this time i may end up shorting little lower,is it ok? I mean when should i open position?

Am not looking into intraday charts,have modified ur 315 strategy little bit to suit EOD.Backtesting has given gud results.Till date did live paper trading,got gud profit,now want to start with real money.So plz do answer my query,it will help me in starting a trade.

Arti

 

[raj_usb]

Hi aarti,

I think its better to wait n watch until 3EMA turns down or we get close below previous day. Also this cud be answer to Slah doubt in above post. Anyway this just my suggestion, SH may clear ur doubt. You said u hv modified SH315 to suit EOD. Can u share those modification with TJ members so that we can come out with more efficient SH315.

Thank u.

- Raj

 

[hills_5000]

Unitech is beginning to turn around and has just closed above 15EMA. I think it would be better to go long rather than be caught on the wrong foot.

This ofcourse from someone who is a bull rather than a bear

Even if you do want to go short id suggest that you let the pattern emerge , post this crossover and then only dive in

SH,
Want u to clear few doubts.Lets take unitech (EOD chart)-
3 is still below 15ema,price has touched 15ema on Thursday.So can we short it,or i should wait to see if price crosses y'day high.If say price crosses y'day high,then should i wait for further price action? wont open any short position and will wait for further price action?

Let say it does not cross y'day high (i.e approx 75)till 3:15pm, then can i open fresh short position? If i wait till this time i may end up shorting little lower,is it ok? I mean when should i open position?

Am not looking into intraday charts,have modified ur 315 strategy little bit to suit EOD.Backtesting has given gud results.Till date did live paper trading,got gud profit,now want to start with real money.So plz do answer my query,it will help me in starting a trade.

Arti

 

[nick721156]

Hi Bandlab,

1. I have used EOD charts so this week we got only one entry signal on Tuesday the day after budget. The signal was to enter short since that day we could clearly see 3 EMA bearish crossover before the day closed.

2. Yes better not to wait for ne...................................

6. I will post the zoomed charts tomorrow, though you can also see them clearly on whatever software you use. you just need to plot 3 EMA and 5 EMA.

7. Yes I trade based on 315 for swings/positionals and results are very good. Thats why I chose to post it here on TJ.

8. If someone ...................................... get whipsawed but its worth the chance. If reversal happens and your SAR is hit .. so be it .. you hop on to longs.

Hope this helps.

Cheers
SH:thumb:

Dear Friend,

I have just started reading this thread. I have some confusion. The basic strategy mentioned here is 3EMA crossing over or below 15EMA for entry or exit. Which 02 EMAs shall I need to use - 3EMA & 15 EMA or 3EMA & 5EMA? Because, in point no. 6, it is said that, " you just need to plot 3 EMA and 5 EMA."

Please clarify this point.

Regards,

Raju

 

[mmca2006]

dear friend,

i have just started reading this thread. I have some confusion. The basic strategy mentioned here is 3ema crossing over or below 15ema for entry or exit. Which 02 emas shall i need to use - 3ema & 15 ema or 3ema & 5ema? Because, in point no. 6, it is said that, " you just need to plot 3 ema and 5 ema."

please clarify this point.

Regards,

raju

3ema & 15 ema :

 

[subratdas]

Dear TWH,
In the above chart on 5th feb EOD chart is not touching the 3 ema .Thus , it is adviced to exit the short positions .
But please find the chart below of TT. The 5th feb eod is still touching the 3 ema. Thus my doubts are 2 fold
a)how can 2 different s/w showing two different kind of charts for Nifty?
b)In this case , how to know which one is correct and how?

 

[subratdas]

Dear TWH,
In the chart shown by Slah04 , on 5th feb EOD chart is not touching the 3 ema .Thus , it is adviced to exit the short positions .
But please find the chart below of TT. The 5th feb eod is still touching the 3 ema. Thus my doubts are 2 fold
a)how can 2 different s/w showing two different kind of charts for Nifty?
b)In this case , how to know which one is correct and how?

thanx
Subratdas

 

[slah04]

Dear TWH,
In the chart shown by Slah04 , on 5th feb EOD chart is not touching the 3 ema .Thus , it is adviced to exit the short positions .
But please find the chart below of TT. The 5th feb eod is still touching the 3 ema. Thus my doubts are 2 fold
a)how can 2 different s/w showing two different kind of charts for Nifty?
b)In this case , how to know which one is correct and how?

thanx
Subratdas

It seems like that the chart is of Nifty Spot instead of the Nifty-Futures-1M that I had posted...

 

[arti]

Hi Raj
As I cannot day trade,am trying to use few other emas along with 3 and 15, to use EOD chart for long term trades(2-3mnths).Profit is sufficient (of course less than actual strategy)

Will surely tell it,but let me get confidence that its worth.Also i keep modifying it as per the situation.So once all rules are stabilized(entry,exit),will mention in this thread only, to get feedback from u guys.

As per my understanding unitech is still in downtrend.Only worry is to short tomorrow or wait for further up move.Of course in mkt we cant be sure of anything.Also it will be test of my system,lets see.

Arti

Hi aarti,

I think its better to wait n watch until 3EMA turns down or we get close below previous day. Also this cud be answer to Slah doubt in above post. Anyway this just my suggestion, SH may clear ur doubt. You said u hv modified SH315 to suit EOD. Can u share those modification with TJ members so that we can come out with more efficient SH315.

Thank u.

-Raj