SH's 315 Strategy - how to use if effectively

[jassinko]

Nifty shorts closed and Longs opened at 4908 levels. Loss in shorts of 38 points.

Holding ICICI longs, Unitech longs and IFCI shorts.

Cheers
SH

Dear Sir
i think 15 MA line just touched with the candle in unitech.........
kindly check and advise whether to remain long or wait for next trigger in Unitech
I am holding 75 CA for Rs. 2.15
Take loss or hold?

 

[sujittalukder]

Hi SH,
Thanks for the reply. I didsome more work with 315 and want experts opinion on that but that somw clarification needed?
1. You said:

We use EOD data.

This means we eork on daily chart only and not weekly or monthly charts. Am I right?

2. In Entry rule it is said as:

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.

What does "Next candle open" mean? Does it mean Next candle to open above 3EMA?
3. If there is bullish crossover ie 3EMA goes above 15EMA and on next day price is above 3EMA ie candle is not touching 3EMA, which is exit rule, Should we enter?
For eg., Nifty spot showed a cross over yesterday on 17/02/2010. Today on 18/02/2010 at around 11:30 AM, the candle is above the 3EMA and the candle is not touching the 3EMA which is as per rule, Exit time. On the same side, it is also Entry time based on Entry Rule. What to do? Should entry be done or avoid entry?

 

[sujittalukder]

I ahve one more query on 315:
Suppsoe cross over took place and on next day we wre preapred to buy the scrip. Tje price open and remain above the 3EMA throughout the day and closes above 3EMA. So for the next day, 3EMA didnot touch the candle for the day.
This gives two signals:
1. Buy
2. Exit
Both the signals are there. What to do then?
I have attached a chart which shows the NSE spot values.
Yesterday on 17/02/10, cross over took place.
Today on 18/02/10, the candle is above 3EMA.
(though slightly the Low of the day touched 3EMA but ignore the same to illustrate the point as if it has not touched the 3EMA)
Should we buy now or do nothing? since two contradictory results are shown?

 

[spiritunit]

Though today 3 EMA crossover 15 EMA, still the 3EMA is not touching the body of 15 EMA, so I think still we can't take a position now for long.

 

[rkkarnani]

Well todays crossover got muted eod.
But my query was , the price opened above the 3ema and was indicating long xover at the same time. As SH says the price tends to retrace back to 3ema during the day or within 3days. Since we had two events at the same time, 315 cross and opening away from 3ema(possibility of price correction), I could not determine which way to go.

Thanks

Observer, In my RT chart (and there may be an error) the crossover was there at close and remained that way!!! In fact when Price opened with a Gap above the 3 EMA, the 315 crossover was visible, it went up and down during the day and ultimately 3 EMA remained above 15 EMA at close!

The second event you said was price opening away from 3 EMA, well it did open away from 3 EMA but on the wrong side!!! It was "above" the price and not below.
As 3 EMA was below 15 EMA we are looking to go short, so why would we wait for the price to go lower then short!!! When price opens "below" 3 EMA we exit our short position if any and reenter short on retracement to 3 EMA!

Praying that my view is correct!!

 

[observer]

Observer, In my RT chart (and there may be an error) the crossover was there at close and remained that way!!! In fact when Price opened with a Gap above the 3 EMA, the 315 crossover was visible, it went up and down during the day and ultimately 3 EMA remained above 15 EMA at close!

The second event you said was price opening away from 3 EMA, well it did open away from 3 EMA but on the wrong side!!! It was "above" the price and not below.
As 3 EMA was below 15 EMA we are looking to go short, so why would we wait for the price to go lower then short!!! When price opens "below" 3 EMA we exit our short position if any and reenter short on retracement to 3 EMA!

Praying that my view is correct!!

My chart was showing 3ema = 4868.78 and 15ema = 4868.79 eod
A marginal difference hence crossover was a bit fuzzy probably.
But the other point, opening away from 3ema, we should be shorting. For going long, would it make sense to wait for price to correct instead of jumping in at the crossover?
I think Sujit has the same query a couple of posts above.

Thanks

 

[arti]

SH,
Again query with unitech . It has given sell signal as per ur strategy(3 didnot cross 15),so we have to short,but i noticed its range is from 68-67 to 77-76.So confused.

Plz suggest what to do,anyway now am late as its already trading at 69.It may expand its range and go down or it may bounce back from here. What to do?

Arti

 

[raj_usb]

Today still 11:30 am 3 EMA is not touching Unitech-1M. Its clear signal to cover shorts eod, if any. As per SH315 you shud wait to open new position until 3 ema touches candle. Today is not the day to go short, sell signal was generated on yesterday eod.

Thks.

- Raj

 

[arti]

3ema is at what level?

Today still 11:30 am 3 EMA is not touching Unitech-1M. Its clear signal to cover shorts eod, if any. As per SH315 you shud wait to open new position until 3 ema touches candle. Today is not the day to go short, sell signal was generated on yesterday eod.

Thks.

-Raj

 

[raj_usb]

Its around 71.5