SH's MArket Correction Prediction Strategy

[Karanm]

Please check, Banknifty 3 EMA has been touched by 3 candles out of 4 in the last 4 days ....

As i quoted in my previous post, sometimes a sudden breakout from a narrow range would mean 3 EMA not being touched... but it should be only once in a while.

I had primarily written these rules for Nifty futures, you need to find out other stocks on which it works ....

Cheers
SH

SH Sir,

There are 3 Success and 3 Failures in Bank Nifty in 2010, I have checked right or wrong, Kindly confirm.

Regards
Karanm

 

[pshirurkar]

Gitanjali gems on fire !!!! more than 10% up.

 

[Best of Luck]

Dear SH Sir ,
From your writings what I understood is this.Please tell whether I am right or wrong.
1.90% of the time on the 3rd day Candle will meet 3 ema at the expected price.
If not we have to be very careful on the fourth day with tight stoploss.
2.If the trend is Neutral Price will meet Ema on the expected target.
3.If the trend is very strong (bullish) it will pull up the 3Ema and meet it on the way up.
It will just give a touch to 3Ema and Fly again.3ema will be dragged along with it.
(Our previous target will be orphaned).Strict stoploss needed at this point.very small profits.
4.If there is strong resistance and heavy selling Price will come down and before that 3Ema will go
further below our previous target( and the current level of 3ema is our new target).
But price will fall further to meet 3Ema wherever it is -not to kiss but to hug.
This time we can make a good profit.
Please explain.
Thanks.

 

[mayur553]

Hi SH,

I have one query... Suppose 3EMA hasnt touched the candle in past 2 days.. here are we talking about EOD... Suppose 3EMA is 5355 according to previous days EOD now on day 2 if nifty high low is 5350 and 5400 and closes at 5385 that is EOD for day ... does it means that nifty have touched 3 EMA... if it dosent then after 2nd day EOD 3EMA would move up... so now our target is 3EMA at 2nd EOD right...

Awaiting your reply
Thanks

 

[itprodeepak]

Hi SH,

As per your market correction strategy a stock should touch 15EMA in max 4-5 weeks that is around 20-25 sessions. See the below TITAN Daily Chart. The stock has not touched its 15EMA since its gave a buy under 315 Crossover. Now its 29 days completed without touching 15EMA. Does it a worth short for 30-40 Rs. for 5-6 August, 2010.

Thanks,

Deepak

 

[Tradewithhunter]

Hi Deepak - the timescales i mentioned were for Nifty only .. not all stocks.

Cheers
SH

 

[Piuvbn]

Hi Deepak - the timescales i mentioned were for Nifty only .. not all stocks.

Cheers
SH

Hi SH I am following you with great interest. My learning of trading is slow and not structured. One bite here another somewhere else. If possible please suggest a structured trading course. Greatfull to you for your posts. Best regards. Partha Roy.

 

[Visualize]

SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));

//Nifty futures price has to revert to 3 EMA within a maximum of 3 days before it goes anywhere else.

//Nifty futures price has to revert to 15 EMA within a maximum of 6 weeks before it goes anywhere else..

//NIfty Futures price has to revert to 34 EMA within a maximum of 16-18 weeks (4 months) before it goes anywhere else.

//NIfty Futures price has to revert to 100 EMA within a maximum of 28 weeks before it goes anywhere else. (7 months)


_SECTION_BEGIN("ema3,15,34,100");
a = EMA(Close,3);
b = EMA(Close,15);
e = EMA(Close,34);
d = EMA(Close,15);

Plot(EMA(Close,3),"EMA 3",colorBrightGreen, styleLine, styleThick);
Plot(EMA(Close,15),"EMA 15",colorBlue, styleLine, styleThick);
Plot(EMA(Close,34),"EMA 34",colorOrange, styleLine, styleThick);
Plot(EMA(Close,100),"EMA 100",colorRed, styleLine, styleThick);
GraphXSpace=0.5;



_SECTION_END();

This is a simple amibroker code with 4 EMA's plotted.

SH Sir you play with ema and you are very good @ it.

Thanks for all your strategies, i am just a beginner now but after some time when my knowledge grows about market i'll start trading in futures.

I have seen similar movements in MA 15,45 & 100 can you tell me what potentially could be the difference between them ?

Thanks again

 

[rahuld2976]

Watch out, Nifty is near its 100 EMA !!!!


:thumb::thumb::thumb:

 

[mayur553]

Even i was gettin excited... nifty near 100 EMA but it bounced back