Trading With CrossOver And BB

[ash.paul]

Hmm..Doc Wonder where you read that. But, just to warn you forex method fall flat in shares. I mean in forex, sharp falls are quite commonly visible, a 20 degree is a too steep a fall to follow in NF. In NF, you would find the trade running away from you by the time you initiated it on a 20 degree fall. The bulls will rule the roost and with sharekhan having u entering the trading pasword every now and then, it would be more than over.

The idea behind looking for a certain degree distance between moving averages is to identify the following trend. But indeed if any one is expecting more than20 degree distance from a 5sma and 4sma then that wont happen very often regardless of what market you are trading, but go check in your charts how many times 5 ema go far away (anglewise) from a 60sma or 180 sma/360sma's?( All these moving averages can also be used as support and resistance lines).. In a trending market you can see it more clearly and confirms the present trend, if you see prices (as 4ema can be considered proxy for price) hovering very near to a 60 sma then that itself will mean there is no proper trend and that is the time to stay away if you are trading the trend following systems.
Moving averages works wonder on a trending market but it will kill a trader on a non-trending market.

Below is a attached chart of 15 min EUR/GBP
Yellow lines are 5 and 7 emas and anyone can see how there is no enough crossover ; 60 sma is denoted as Red color. 5&7 emas are hovering around 60 sma although they have crossed 60 sma but angle of crossover is not satisying for me for the confirmation of the trend.

 

[prasadam]

still waiting for a clear trend.

 

[docvijay4u]

Yes That Is What I Was Thinking Of:thumb:

10.00-10.15 Bar Appered To Be Some What Like WRB With Bulish Engulfing Pattern But SMA CrossOver And BB Not Giving Such Confirmation Even On Current Bar. 10.30-10.45 Bar Should Show Some Strength.

still waiting for a clear trend.

 

[prasadam]

Doc.

BB piercing @ 10.15 - 10.30 bar.???

***********************************************************************************************
.......

Points to remember:
There are 2 aspects of BB grazing and BB piercing.BB grazing means the
trend is continuing.
BB piercing means end of trend ,you look out for TWIN bars of different colours.(on small TF)
When on LONG look out for Green & Red bars.
When on SHORT look out for Red & Green bars.

.....

 

[docvijay4u]

Looks Like I Missed This Post From BB Master Columbus Sir. Thanks For Quoting Such Valuable Posts On Right Time. Yes From What Little I Know It's Piercing,We Are Still In Contracted Zone Even On Last Bar SMA 4 Was Above 5 But Current Bar Showing It's Just A Wipsaw... Let's See...

Thanks Again.........

Doc.

BB piercing @ 10.15 - 10.30 bar.???

 

[prasadam]

Long @ 3565.

current bar opening.

will add, if trend is confirmed on next bar.

 

[docvijay4u]

It's Great To See Your Trading On Tough Situations..... Here Comes Difference Between More Exprienced One And Noob Like Me

Thanks.

Long @ 3565.

current bar opening.

will add, if trend is confirmed on next bar.

 

[prasadam]

Had to follow the strategy.

add @ 3568.

profit(loss) is left in the hands of the market.

 

[docvijay4u]

Prasad, For Few Moment I Was Playing For S/L Value Some Interesting Points.... Just For Fun...... Values Are Appx 1-2 Points Here And There.....

Low Of The Day 3538
Low Of The 10.00-10.15 Bar 3538 (Considering As WRB)
Low Of The 10.30-10.45 Bar Minus 10 Point 3538 (Because This Bar Breached 9SMA Support Which Few Trader Use As S/L You Mentioned It Before)
Value Of Lower BB 3538

Should We Call 3538 As A Golden S/L?

Thanks

 

[vicky_ag]

Ash, did you read what I said? Probably, not. Read my lips when I say, things which work on Forex are very dagerous to use on NF, they might not work at all. So, please put up a chart on NF not on EUR/GBP on the 20 degree angle thing.

And as to use of so many MA's (SMA or EMA) is too many to confuse. I mean 60, 180 , 360 SMA compared to 5 SMA, really?

My warning comes from experience. I have been doing forex with use of just an EMA to take my decisions and returns are full in the London session. But, the same doesnt work on NF.

Truthfully, even a meaningful thing like candlestick pattern doesnt hold any significance in Indian scenario. You will find shooting stars, hanging man etc used like a pitstop for continuation of trends.

Look at a recent example of HDFC on a daily chart to get my point.

The idea behind looking for a certain degree distance between moving averages is to identify the following trend. But indeed if any one is expecting more than20 degree distance from a 5sma and 4sma then that wont happen very often regardless of what market you are trading, but go check in your charts how many times 5 ema go far away (anglewise) from a 60sma or 180 sma/360sma's?( All these moving averages can also be used as support and resistance lines).. In a trending market you can see it more clearly and confirms the present trend, if you see prices (as 4ema can be considered proxy for price) hovering very near to a 60 sma then that itself will mean there is no proper trend and that is the time to stay away if you are trading the trend following systems.
Moving averages works wonder on a trending market but it will kill a trader on a non-trending market.

Below is a attached chart of 15 min EUR/GBP
Yellow lines are 5 and 7 emas and anyone can see how there is no enough crossover ; 60 sma is denoted as Red color. 5&7 emas are hovering around 60 sma although they have crossed 60 sma but angle of crossover is not satisying for me for the confirmation of the trend.