Trading With CrossOver And BB

[docvijay4u]

Prasad Price Is Still Moving Close To SMA's. Have You Taken Trade @ 10.31?

Thanks.

 

[prasadam]

No Doc.

waiting for a clear picture.

 

[docvijay4u]

Okay. Prasad In One Of The Forex Forum I Read One Guy Succesfully Using CrossOvers For Years. I LiKed One Point Very Much, That He Takes Trade (Short/Long) Only When Angle Of CrossOver Is Equal To Or More Than 20 Degree (Visually). Right Now It's Running Flat.

Thanks.

No Doc.

waiting for a clear picture.

 

[prasadam]

It seems we have to short after 11.00 am.

If shorts are triggered, will add to the position , after 11.15.

Stoploss at opening bar +10, or 1 ATR of 15 min. bar. ( which is 18 points)

what do you say Doc.?

 

[docvijay4u]

Yes Next Bar Time To Go Short, But Recent WRB Should Not Create Headache Later On...

 

[prasadam]

short 3612.
SL 3650 ( previous bar(WRB) high + 10)

 

[docvijay4u]

I Was Thinking About S/L, WRB's Always Scare Me. Just One Observation S/L(3650) Is Upper BB Above WRB.

BB's Opened Up Nicely And Respecting Price To Go Down.

Have You Added Position @11.16?

Thanks.

short 3612.
SL 3650 ( previous bar(WRB) high + 10)

 

[docvijay4u]

- SMA CrossOver Itself Gives Direction Of Trend Or Simply Trend Reversal.

- Apart From That Each SMA Also Act As Support And Resistance. Initally After Giving Trend Reversal, When We Are Watching CandleSticks For 11.00-11.15 n 11.15-11.30 Bar (Here Prices Moving Along Trend) 4 n 5 SMA Were Acting As Support But 11.30-11.45 Bar Which Is Moving Agaist Trend Now Same 4 n 5 SMA Act As Resistance.

- Now 11.30-11.45 Bar Broke 4-5 SMA Resistance An Early Signal For Trend Reversal But As Always Subsequent Bar Should Confirm Trend Reversal By Strong Closing Above 4-5 SMA Along With That Of Course Our Friend CrossOver Should Tell The Same Story. Isn't It?

- As Of Now 11.45-12.00 Bar Neglected Trend Reversal Possibility And Showing Bearish Engulfing Pattern So Telling Possible End Of Bullish Move. May Be Another Opportunity To Add Position Le Us See........

- 12.00-12.15 Bar Closing Below 4,5 SMA Still Showing Respect To These Support Level, Bearish Trend Continuation....

- 12.00-12.30 Continuation Of Trend, Next Candle Might Be 1'st Profit Booking Candle Hope It Will Close Way Below.......

Thanks.

 

[prasadam]

found this useful for understanding price movement.

5th Bar Profit Booking method

Quote:
It has been my observation that mkt goes sideways or takes a correction after 5 bars of trending in any direction. Always if you are short,it is a good idea to take some profit in 4th bar dip or the 5th bar. This gives you a great profit booking entry when nobody is expecting a correction against our existing position.

You will be surprised to see this 5 bars phenomenon on any timeframe. See it on 10 min,30 min and also 60 min TF. In fact this is one of the profit booking technique in some system. I can name the system but dont want it to cause any confusion here.

But I am also surprised to see mkt going in correction mode ( not necessarily trend change mode ) in various time frames from 10 min to daily charts after 5 bars of trended move.

Courtesy: smart_trade's post

 

[prasadam]

based on the above post of ST,as soon as the next bar turns into green,will book profit in the added position. and will continue with the original position.

edit. closed one short.( gain. 3608-3570 = 38 points)