Trading With CrossOver And BB
- Thread starter docvijay4u
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Oh I See!
- That Means While You Were Going Short S/L For That Order Was 9.55-10 Bar High 3350+10 = 3360 At That Level CrossOver Were Also Telling To Go Long.
- What If We Are Going Long. Is It Reverse Opening Bar Low - 10 Points? In This Case 3340-10=3330.
- What During Subsequent Trades?
Thanks.
- That Means While You Were Going Short S/L For That Order Was 9.55-10 Bar High 3350+10 = 3360 At That Level CrossOver Were Also Telling To Go Long.
- What If We Are Going Long. Is It Reverse Opening Bar Low - 10 Points? In This Case 3340-10=3330.
- What During Subsequent Trades?
Thanks.
Can you please explain me the above theory of stop loss in this 3/4 and 5 sma crossover trading. I have read this post many times but still not able to understand it fully. Please explain me this by giving an example. And also what is this 9:55-10 bar. As per my understanding we are doing trade in 15 min bar. If i am wrong please correct me.
Smiles:
Priyank
- This Is About Intial StopLoss. Say Trading Day Starts And 1st Candlestick Forms From 9.55-10.00 A.M. We Note Down High And Low Of That CandleStick By Drawing Lines On Charts Or By Tick Data Provided By Particular Software, It's Personal Choice.
- After Noting It Down We Wait Confirmation Of CrossOver Either Bullish Or Bearish. Suppose Confirmation Came For Bullish CrossOver @ 10.30 i.e. We Are Going Long We Enter StopLoss Below The Low Of 9.55-10.00 Bar(Which We Already Noted Down)Minus Few Points(Prasad Uses 10 Points). This Is Just To Save Us If In Case Something Goes Horribly Wrong Against Our Long Trade. Same Thing Applies If We Are Going Short- High Of 5 Min. Bar Plus Few Points.
- S/L On SubSequent Trade? This Part Is Still Unanswered, I Hope Prasad Will Clear It In Subsequent Posts.
Thanks.
- After Noting It Down We Wait Confirmation Of CrossOver Either Bullish Or Bearish. Suppose Confirmation Came For Bullish CrossOver @ 10.30 i.e. We Are Going Long We Enter StopLoss Below The Low Of 9.55-10.00 Bar(Which We Already Noted Down)Minus Few Points(Prasad Uses 10 Points). This Is Just To Save Us If In Case Something Goes Horribly Wrong Against Our Long Trade. Same Thing Applies If We Are Going Short- High Of 5 Min. Bar Plus Few Points.
- S/L On SubSequent Trade? This Part Is Still Unanswered, I Hope Prasad Will Clear It In Subsequent Posts.
Thanks.
dear priyank.
Normally, sma cross over will be our SAR, so we need not bother about stoploss. But, sometimes it so happens that the crossover happens at a point very distant from our entry that leaves a deep hole in our pocket. In order to prevent this, I found it useful to have a SL other than cross over, which can be based on opening bar, ATR of the time frame we are trading, or some fixed points etc.,
In short, as rightly said by vicky and doc. it is an initial stoploss based on the opening ( 9.55-10.00) bar.
hope I am clear.
prasad.
Normally, sma cross over will be our SAR, so we need not bother about stoploss. But, sometimes it so happens that the crossover happens at a point very distant from our entry that leaves a deep hole in our pocket. In order to prevent this, I found it useful to have a SL other than cross over, which can be based on opening bar, ATR of the time frame we are trading, or some fixed points etc.,
In short, as rightly said by vicky and doc. it is an initial stoploss based on the opening ( 9.55-10.00) bar.
hope I am clear.
prasad.
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