SH's 315 Strategy - how to use if effectively

[rh6996]

Thanks for this suggestion about taking position in Put again!! I bought back 500 Puts of 5100 strike at 54.30!! Workrd great!! Have switched to Niftu Future short below 5131 (opening low) and have exited the Puts at 77.80!! Wow.. thanks for the continued guidance!!! Please clear your Inbox at Traderji so tat I need not post here!! Thanks again. Any idea when is Shravan returning?

Exited my 200 Nifty at 4951/- may enter if NF moves quiet high or be satisfied with my very decent profits in this run... thanks :thanx: to SH for 315, rkk for guidance and reinforcing Option idea given by shravan (ccmb420)!!
315 rocks!!!!!!!!!!!!!

 

[achopraa]

Dear SH,

We are Out of Trade now as the 3EMA has touched from different side.
If we go short now at around 4950, the difference between Current Price and 3EMA (5020) is large (70 points).
So, in all probability the candle for tomorrow will open below the 3EMA, but it can open at a price higher than current price (may be around 4970). What should we do?

Thanks,

 

[rkkarnani]

Covered my 100 of the 200 Nifty shorted again at 5069 at 4919... giving me a total profit of ~250 points in this run in the 100 NF covered!!! Agree 315 rocks!! Thanks the upteenth time SH

 

[rkkarnani]

Absolutely, I was about to post the same doubt.
Also, y'day I re-entered SHORTS at 5080 (which was the 3EMA value when I covered my SHORTS in the morning on non-touching of Candle).
Now, I knew (kinda) that today again while market opening the candle won't be touching the 3EMA, so covered the shorts again at 5036. The 3EMA value at that time was 5063.

So Ideally, as per strategy, I should re-enter either at 5060-5065 levels or at 3EMA touching today's candle, which ever is earlier.

QUESTION 1 Now, the problem is that if Market crashes, then as posted earlier, the 3EMA will touch the candle at 5050 (if the NIFTY FUT. value goes down to 5010). So should we enter SHORTS at 5010?

QUESTION 2 If it goes up, then ideally it has to touch the candle at 5090 which seems distant at the current moment. So if it doesn't touch till 3.25 PM, should I go LONGS as it will be 2nd day of candle not touching 3EMA?

QUESTION 3 If at all it manages to go UP till 5090, should we re-enter SHORTS?

Edit
This is what I am thinking of doing:
Wait till 3.25 PM. If candle is touching 3 EMA, enter SHORTS.
If it is not touching, Enter contra trade (LONGS) with target as 3EMA
Sounds Correct?
Edit End


Thanks.

You cannot mathematically calculate in advance the level where 3EMA will touch the price bar!!!
You can calculate the value of 3EMA at any given level but you cannot prejudge the movement of Price bar!! If NF moves up and then comes down, 3EMA will stoop low to kiss the price line... the levels we calculate on the basis of previous days close will go haywire!! 3EMA did touch price but not at the level where 3EMA was yesterday!!!

 

[achopraa]

You cannot mathematically calculate in advance the level where 3EMA will touch the price bar!!!
You can calculate the value of 3EMA at any given level but you cannot prejudge the movement of Price bar!! If NF moves up and then comes down, 3EMA will stoop low to kiss the price line... the levels we calculate on the basis of previous days close will go haywire!! 3EMA did touch price but not at the level where 3EMA was yesterday!!!

Actually, you can calculate it "dynamically". 3EMA value is based on the Closing value which during the day is the Last Traded Price.
Anyways, In the morning I had 2 values when 3EMA will kiss the Candle.

--> First was at Price 5090 when Price would be equal to 3 EMA . This was possible if Market Opens Higher than 5090 (Very difficult) or If Market Opens lower than the candle (When we cover the Shorts) and market keeps on Rising to touch 3 EMA (At this time we again Enter Shorts i.e. Booked Profit and continuing our ride on the oscillator).
This is EASY and discussed a lot. This is what exactly we did yesterday.

--> Second was 5010 when Price will be less than 3 EMA(3EMA value will be 5050). This was possible if Market Opens lower than the candle (When we cover the Shorts) and market keeps on Going down so that the 3EMA value starts coming down and touches the point (or a bit below) where Candle Opened. The question was, in this case at what point do you Enter Shorts?

 

[rishete]

3 EMA touch today, short today at around 4950... hope this is correct as per strategy... SH..?

 

[btechrohit]

Actually, you can calculate it "dynamically". 3EMA value is based on the Closing value which during the day is the Last Traded Price.
Anyways, In the morning I had 2 values when 3EMA will kiss the Candle.

--> First was at Price 5090 when Price would be equal to 3 EMA . This was possible if Market Opens Higher than 5090 (Very difficult) or If Market Opens lower than the candle (When we cover the Shorts) and market keeps on Rising to touch 3 EMA (At this time we again Enter Shorts i.e. Booked Profit and continuing our ride on the oscillator).
This is EASY and discussed a lot. This is what exactly we did yesterday.

--> Second was 5010 when Price will be less than 3 EMA(3EMA value will be 5050). This was possible if Market Opens lower than the candle (When we cover the Shorts) and market keeps on Going down so that the 3EMA value starts coming down and touches the point (or a bit below) where Candle Opened. The question was, in this case at what point do you Enter Shorts?

After reading 400 + pages , I am still clueless about the SECOND case u mentioned. Answers awaited.

 

[trader_boy]

Actually, you can calculate it "dynamically". 3EMA value is based on the Closing value which during the day is the Last Traded Price.
Anyways, In the morning I had 2 values when 3EMA will kiss the Candle.

--> First was at Price 5090 when Price would be equal to 3 EMA . This was possible if Market Opens Higher than 5090 (Very difficult) or If Market Opens lower than the candle (When we cover the Shorts) and market keeps on Rising to touch 3 EMA (At this time we again Enter Shorts i.e. Booked Profit and continuing our ride on the oscillator).
This is EASY and discussed a lot. This is what exactly we did yesterday.

--> Second was 5010 when Price will be less than 3 EMA(3EMA value will be 5050). This was possible if Market Opens lower than the candle (When we cover the Shorts) and market keeps on Going down so that the 3EMA value starts coming down and touches the point (or a bit below) where Candle Opened. The question was, in this case at what point do you Enter Shorts?

Exact same confusion i am in....i guess we were supposed to short ystrdy @5070.(3ema value when you exited shorts yeaterday)...or if you wernt holding anything and waiting to enter then i guess @5020 3ema would hav touchd eod candle.....so we could have waited for NF to crash beyond 5020....and we could hav entered @5000... when NF breached ystrdys low ...this is the only possible solution i guess.because if we entered @say 5020 ...n price moves up taking the 3ema above todays high then we would have ended up with candle not touching the 3ema and thus stuck in wrong position....(just trying to help fellows correct if wrong)

 

[reenumlk]

Yes this is exactly the reason .... 3 EMA not touched todays candle ....

Going empty handed tonite .... will re-enter in shorts tomorrow at 3 EMA touch now ...

Cheers
SH

Dear SH, please clarify today's action bcoz there are confusions about reentry level.
Thanks

 

[rkkarnani]

Actually, you can calculate it "dynamically". 3EMA value is based on the Closing value which during the day is the Last Traded Price.
Anyways, In the morning I had 2 values when 3EMA will kiss the Candle.

--> First was at Price 5090 when Price would be equal to 3 EMA . This was possible if Market Opens Higher than 5090 (Very difficult) or If Market Opens lower than the candle (When we cover the Shorts) and market keeps on Rising to touch 3 EMA (At this time we again Enter Shorts i.e. Booked Profit and continuing our ride on the oscillator).
This is EASY and discussed a lot. This is what exactly we did yesterday.

--> Second was 5010 when Price will be less than 3 EMA(3EMA value will be 5050). This was possible if Market Opens lower than the candle (When we cover the Shorts) and market keeps on Going down so that the 3EMA value starts coming down and touches the point (or a bit below) where Candle Opened. The question was, in this case at what point do you Enter Shorts?

Dynamic is the right word for this!! Had the NF risen say upto 5080 and NOT touched the 3EMA, but thereafter as NF went down the Touch of NF and 3EMA would come at a higher level becoz 3EMA has to come down to 5080 only to kiss NF!!