SH's MArket Correction Prediction Strategy

[trade4putuval]

Yesterday nifty 3 ema not touching in spot. Looks like we see higher levels today

SGX nifty is 50 points down as I type!!!

 

[vikasnp81]

Most of the time the stock reacts to this system with in one day. That is we need not wait for two days to touch the 3 day ema.

 

[trade4putuval]

Most of the time the stock reacts to this system with in one day. That is we need not wait for two days to touch the 3 day ema.

I have been following this since a very long time. I have encountered many times that the price touches 3EMA on the third day, and in some cases, it has drifted to the fourth day too. But yes, the system does work on the last day for sure!!!!

But looking at the SGX, it looks like the price is headed again to 100 EMA. And it could break through it too.

So this can be the strategy.

• Market opens at 5885, then we can see a very good bar above 100 EMA till the 3EMA.
• Alternatively if the market opens near yesterday's close, then we could be headed lower, in which case 3EMA will automatically touch the candle.

 

[vikasnp81]

Today nifty spot touched 100 ema and recovered to close back above it. What's next? Bullish or bearish?
Finally the system worked today bought 6000 calls [email protected] sold it for 63.2 profit 26100. Thank you SH

 

[trade4putuval]

Today nifty spot touched 100 ema and recovered to close back above it. What's next? Bullish or bearish?
Finally the system worked today bought 6000 calls [email protected] sold it for 63.2 profit 26100. Thank you SH

Well, this is SMC thread, so strictly limited to only SMC trades. I will provide nifty views (that is non-SMC) in my thread!

Take care!

 

[poortrader]

Today nifty spot touched 100 ema and recovered to close back above it. What's next? Bullish or bearish?
Finally the system worked today bought 6000 calls [email protected] sold it for 63.2 profit 26100. Thank you SH

Can you elaborate on what basis you bought the CE?(I mean how it is related to EMA100)

 

[trade4putuval]

Can you elaborate on what basis you bought the CE?(I mean how it is related to EMA100)

Nifty does not like 100EMA.

It either bounces from it or cuts through it and closes very far away from it. You can refer the historical charts by plotting 100EMA.

So trades near 100EMA are many a times fruitful with a very small stop loss.

 

[vikasnp81]

sorry, this trade was not based on 100 ema. It was based on 3 ema correction

 

[poortrader]

Nifty does not like 100EMA.

It either bounces from it or cuts through it and closes very far away from it. You can refer the historical charts by plotting 100EMA.

So trades near 100EMA are many a times fruitful with a very small stop loss.

I have backtested the EMA 100 strategy with options data for last 3 years but recently (1.5yrs) it has been going wrong more often than not. That is why I asked you the question. If you backtest you will also know the problems.

 

[trade4putuval]

I have backtested the EMA 100 strategy with options data for last 3 years but recently (1.5yrs) it has been going wrong more often than not. That is why I asked you the question. If you backtest you will also know the problems.

Well, I am not comfortable with options. So no comments!

Note: Also check if 100EMA was near the expiry, if so, time decay must have cut down the option value!!! Please check against future prices too.