SH's 315 Strategy - how to use if effectively

[bhavesh_09]

Infy generated buy signal on friday , and Dish TV today.

Guys, correct me if I am wrong.

 

[dashr]

Correct, Dish TV has crossed over. Enter longs at 77 or at closing price. Keep 15EMA as stop loss on closing basis. DishTV gives trending moves. Avoid INFY as it remains in a range. Other stocks that give good trending moves are HDIL and OptoCircuit.

 

[gadinaa]

Help a newbie.

I have found this system great but i have many doubts .
Basic rules are we buy when candle closes above 15 days ema and candle after that there is a crossover of 3 days ema from below of 15 days ema.

I have used 315 technique to buy stock for delivery. I don't have fancy software ... i use icharts... . This is how i buy or sell stocks i wait for day to close say 26th nov and if stock i am interested has above signs i.e. candle on 25th closed above 15 days ... there was cross over on 26th than i buy the stock on 27th. Issue is how do i make the decision to buy or sell based on rules of 315 during the day when market is still operating. I have just begun and i dont much about software but we would get 15 days and 3 days ema figures only when market has closed right? and ema are calculated on basis of end of day price? How do i make a decision to sell a stock without waiting for day to end and than check charts and confirm ya 3days ema has gone below 15 days ema and sell stock next day as soon as market opens.

 

[rkkarnani]

Help a newbie.

I have found this system great but i have many doubts .
Basic rules are we buy when candle closes above 15 days ema and candle after that there is a crossover of 3 days ema from below of 15 days ema.

I have used 315 technique to buy stock for delivery. I don't have fancy software ... i use icharts... . This is how i buy or sell stocks i wait for day to close say 26th nov and if stock i am interested has above signs i.e. candle on 25th closed above 15 days ... there was cross over on 26th than i buy the stock on 27th. Issue is how do i make the decision to buy or sell based on rules of 315 during the day when market is still operating. I have just begun and i dont much about software but we would get 15 days and 3 days ema figures only when market has closed right? and ema are calculated on basis of end of day price? How do i make a decision to sell a stock without waiting for day to end and than check charts and confirm ya 3days ema has gone below 15 days ema and sell stock next day as soon as market opens.

One can decide to do it at say 3:25 to 3:28 PM, just when mkt is abt to close, take the traded value at that time treat it as closing value and see whether a crossover is happening if mkt wud close at that price! Its not 100% sure shot thing but the nearest workable solution.

 

[mksreeram]

Help a newbie.

I have found this system great but i have many doubts .
Basic rules are we buy when candle closes above 15 days ema and candle after that there is a crossover of 3 days ema from below of 15 days ema.

I have used 315 technique to buy stock for delivery. I don't have fancy software ... i use icharts... . This is how i buy or sell stocks i wait for day to close say 26th nov and if stock i am interested has above signs i.e. candle on 25th closed above 15 days ... there was cross over on 26th than i buy the stock on 27th. Issue is how do i make the decision to buy or sell based on rules of 315 during the day when market is still operating. I have just begun and i dont much about software but we would get 15 days and 3 days ema figures only when market has closed right? and ema are calculated on basis of end of day price? How do i make a decision to sell a stock without waiting for day to end and than check charts and confirm ya 3days ema has gone below 15 days ema and sell stock next day as soon as market opens.

It is better to do it on the same day when the crossover happens. Do it by 3:27. By 3:27 you would know open, low and high. Take the LTP as close and see if the EMA has crossed. As many had mentioned in this thread price at 3:27 would be more or less the close price.

If you don't have any charting software, you don't need to worry. All you need are the below values and the formula for EMA. You can put this in excel so it becomes easier.

For EMA 3:
Price(t) - this is the Last traded price at 3:27
k - .5 formula to get K is 2/(N+1) where N is 3 in this case
EMA(y) - yesterday EMA value

to calculate EMA 3 for today is EMA = Price(t) * k + EMA(y) * (1 k)
e.x in case of NIFTY today at 14:28
Price(t) = 5709.34
k = .5
EMA(y) = 5627.9
Apply the formula you get 5688.62

For EMA 15:
Price(t) - this is the Last traded price at 3:27
k - .125 formula to get K is 2/(N+1) where N is 15 in this case
EMA(y) - yesterday EMA value

to calculate EMA 15 for today is EMA = Price(t) * k + EMA(y) * (1 k)
e.x in case of NIFTY today at 14:28
Price(t) = 5709.34
k = .125
EMA(y) = 5637.84
Apply the formula you get 5646.77

Now we have EMA 3 for yesterday and Today also we have EMA 15 for yesterday and today. Look at these values and what it says

Yesterday -> EMA3 = 5627.9 and EMA15 = 5637.84 (EMA3 is lesser than EMA15)
Today @ 14:28-> EMA3 = 5668.62 and EMA15 = 5646.77 (EMA3 is greater than EMA15)

This means that EMA 3 did a bullish crossover of EMA 15 so you can go long. Still don't enter the trade wait for 15:27 price and see if the crossover holds good. If yes then go long.

Reverse of this should happen (yesterday EMA3>EMA15 and today EMA3<EMA15 for bearish crossover).

Regards
Sreeram

 

[dashr]

NIFTY Dec closed above 15EMA today. On Thursday, any closing as long as it is above 5690, will mean that 3EMA will remain above 15EMA, so enter long anywhere on dips. If you are unable to enter on a dip, then enter at whatever the price is at the time of closing, provided it is not in GFZ(1%-30mins) presently 5788. This is expected to continue rising. So, do not go long above 5800 on Thursday.

 

[mksreeram]

NIFTY Dec closed above 15EMA today. On Thursday, any closing as long as it is above 5690, will mean that 3EMA will remain above 15EMA, so enter long anywhere on dips. If you are unable to enter on a dip, then enter at whatever the price is at the time of closing, provided it is not in GFZ(1%-30mins) presently 5788. This is expected to continue rising. So, do not go long above 5800 on Thursday.

I wish I enter today. No trade allowed for me as I broke 6% loss rule mid this month. Few nonsense impulsive trades brought me to this position.

Nevertheless, a learning though.

 

[dashr]

What is this 6% loss rule you talk about? Interesting hmmm

 

[gadinaa]

Here is screen shot of Alstom India. My i have made three circles in red ...two are from past and last one is just day old. Mu question is if we see two previous circles... we see crossover and candle above 15 day yet there was hardly movement and 3 day ema dipped again... my point is if had bought thois stock how can i know stock will appreciate enough that when i sell i can may be just even 2 percent net profit ( after deducting cost)..... Point is how do i know that there is scope to make money despite getting right signs of cross over as past shows it tends dip in day or two

 

[rkkarnani]

Here is screen shot of Alstom India. My i have made three circles in red ...two are from past and last one is just day old. Mu question is if we see two previous circles... we see crossover and candle above 15 day yet there was hardly movement and 3 day ema dipped again... my point is if had bought thois stock how can i know stock will appreciate enough that when i sell i can may be just even 2 percent net profit ( after deducting cost)..... Point is how do i know that there is scope to make money despite getting right signs of cross over as past shows it tends dip in day or two

Best is DO NOT trade this stock as per 315 Strategy!
One needs to study the historical charts.
I dont have Alsthom charts now but I vaguely remember Alstom in last Sep or october, gave 10 consecutive Buy and Sells in 15 trading days.... so just move on to something that really works with this strategy. Moreover simple crossover also does not work in NIFTY, one has to adhere to all RULES suggested here for exit, reentry, and adds etc.